Stuck with damaged facilities, G40

There is no way of repairing the facilities of a nation with an occupied capital right?

In my most recent game of G40, Germany pulled of a successful G3 sealion. on I3, Italy used its strategic bomber to render the British Gibraltar naval base inoperable. As UK skips its purchase and repair phase, am I right in thinking there is no way it could have been repaired without UK liberation? This was a huge hindrance to US presence in Europe, as it’s ability to strike into the Mediterranean and northern Europe was effectively eliminated. The US was unable to threaten axis fleets in SZs 95 and 112, furthermore from Sz 91, there is no access to Scotland for a beachhead into England. Essentially the US was forced to liberate UK from the Canadian Naval base, giving Italy a free hand, and Germany the ability to Scare the US off with Subs and the Luftwaffe. Any option required the slow build up of a colossal Atlantic Carrier Fleet, when this was the last thing the US wants with the pressure of a J1 attack.
TL;DR:
If im right in thinking that the Gibraltar naval base cant be repaired with UK out of the game, then the UK will have an awful time with its already precarious logistics, and its attempts to liberate UK will be painfully expensive. Whats the counter to this? Or is Sealion simply more rewarding to the Axis than I first thought.

@Midnight_Reaper
An axis power would need to have captured morocco themselves beforehand for the US to liberate it from the French correct? In my game this didn’t happen so US forces where simply in French friendly territory. Although the Italian NO calls for control of Morocco, this is difficult in most games anyway, they might just decide not to even try capturing it to make the US life difficult. It does make Spain look like an option for the US, although this also has it drawbacks considering Italy’s ownership of the Med with regards to turkey.