Edwards, NC colleagues introduce bill to aid small business recovery after Helene

U.S. Congressman Chuck Edwards (R-NC-11) introduced the Helene Small Business Recovery Act, marking the the six-month anniversary of Hurricane Helene’s landfall, to facilitate small business owners’ access to federal aid for rebuilding after Hurricane Helene. Congressman Don Davis (D-NC-01), Congresswoman Virginia Foxx (R-NC-05), and Congressman David Rouzer (R-NC-07) are co-sponsoring this bipartisan bill.

Congressman Edwards said, “Small businesses are the lifeblood of our region’s tourism economy, and after WNC businesses suffered the worst natural disaster to ever hit our mountains, federal support is vital to help folks rebuild their livelihoods and the region’s economy.

“The Helene Small Business Recovery Act clarifies that SBA loans and federal grants, like those that will be offered through the CDBG-DR program, are not duplicative. Without this clarification, businesses that took an SBA loan to keep themselves afloat would be prohibited from accessing federal grant money when it becomes available.

“Loans and grants are inherently different, and this bill will allow small business owners access to both federal resources so that Western North Carolina, and every small business that makes our mountains such a great place to live, has the resources needed to recover.”

“Western North Carolinians are still facing the challenges brought on by Hurricane Helene, and they need our heartfelt support. The Helene Small Business Recovery Act is a vital initiative that will help empower the community to rebuild and revitalize the economy, bringing hope and stability back to the region,”said Congressman Don Davis.

Congresswoman Foxx said, “Following a disaster, the federal government should be a support system for states and not run interference. The Helene Small Business Recovery Act addresses a crucial need for businessowners to get the support they need from the federal government without facing bureaucratic delays or roadblocks. I’m proud to serve as an Original Cosponsor of Representative Edwards’ legislation and to continue our efforts in helping western North Carolina get back on its feet.”

BACKGROUND

• Section 312(a) of the Stafford Act prohibits federal agencies from duplicating benefits.
  • Under current law, a loan is considered duplicative of a grant.
    • If a business owner qualified for a federal disaster recovery loan from the Small Business Administration (SBA), then they are ineligible to receive a federal disaster recovery grant from the Community Development Block Grant Disaster Recovery (CDBG-DR) program.
    • This is the case despite the fact that SBA loans are required to be repaid, while CDBG-DR grants are one-time payments to victims that do not require repayment.
  • The Disaster Recovery Reform Act of 2018 temporarily clarified that a loan is not duplicative of a grant, because the federal government makes various assistance available at different times after a disaster.
    • This waiver expired at the end of 2021.

HELENE SMALL BUSINESS RECOVERY ACT

• The Helene Small Business Recovery Act would temporarily waive loans from being considered a duplication of benefits for disasters that occurred between the calendar years 2023 to 2024.
  • This exemption would apply to communities that received a CDBG-DR grant through the American Relief Act.
• Western North Carolina was awarded $1.65 billion in disaster block grants through the American Relief Act to aid in Helene recovery.
  • The Helene Small Business Recovery Act will allow disaster survivors to access the federal assistance needed to sustain our region’s businesses and keep families in Western North Carolina.