Helene-hit Swannanoa businesses say state rules block access to federal recovery funds

June 6, 2026 - 05:02

Small business owners in Swannanoa who were devastated by Hurricane Helene say they are being shut out of federal recovery money because of restrictive state regulations. Many of these businesses were wiped out or heavily damaged when the storm swept through the area, but owners report that state-level rules are preventing them from even applying for the disaster assistance they desperately need.

The frustration is growing as weeks pass without clear solutions. Business owners describe a situation where they meet the federal criteria for disaster relief but are told their applications are invalid due to state-imposed requirements that do not match the reality of the damage. Some say the rules require documentation that was destroyed in the flooding or structural assessments that are impossible to complete when buildings are still unsafe to enter.

Local officials acknowledge the problem but have not yet offered a workaround. Meanwhile, owners are left trying to rebuild with personal savings or loans, knowing that the federal funds meant to help them are sitting unused. One owner described the situation as a second disaster, saying the storm took their building but the state rules are taking their future. Without changes, many fear they will never reopen.