Thursday, January 18, 2007

Disaster at the Disaster Fund

Uncle Sam's biggest disaster relief program is running out of money. The Small Business Administration provides rebuilding money following natural disasters.

An internal memo obtained by the New York Times shows the SBA will have to shut down if Congress doesn't get it an infusion of money. A temporary shutdown could cause major problems for people and businesses recovering from the ice storms across the midwest.

The problem dates back to 2005, when the SBA declared it had plenty of money and didn't request it's annual budgeted amount from Congress.

Remember 2005? The year of Katrina?

SBA had to ask for an emergency infusion in 2006, and has never recovered. (NYT)

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