Disaster Assistance for Businesses after Hurricane Helene and Hurricane Milton: What You Need to Know
The devastating impacts of Hurricanes Helene and Milton have left many businesses grappling with significant damage and financial uncertainty. Whether it's structural damage, loss of inventory, or disruption in operations, recovering after a major disaster can feel daunting. However, there are resources available to help businesses rebuild and thrive again. Here’s what you need to know about disaster assistance options, including low-interest business loans and updated IRS deadlines.
General Information and Government Support
Hurricane Milton has caused significant damage in Florida, leading to extensive recovery efforts. Residents and businesses affected by the storm can access various forms of assistance from federal and state agencies.
Key Resources:
Federal Emergency Management Agency (FEMA): Provides immediate aid, including financial assistance for housing, essential needs, and crisis counseling. FEMA’s Transitional Sheltering Assistance (TSA) program helps displaced individuals find temporary lodging in approved hotels. Registration through FEMA is required for most assistance programs.
Small Business Administration (SBA): Offers low-interest disaster loans for businesses, homeowners, and renters. These loans cover uninsured losses, including property repairs and business operating expenses. SBA Economic Injury Disaster Loans (EIDLs) support small businesses facing operational challenges due to the disaster.
IRS Tax Relief: The IRS has extended tax deadlines for hurricane victims until May 1, 2025. This relief includes individuals and businesses in all affected Florida counties, covering filings, payments, and penalty waivers.
Disaster Loans for Businesses: Besides federal aid, businesses can apply for additional private and state loans. These funds are critical for rebuilding infrastructure and recovering financially.
Housing and Shelter Assistance: Programs from FEMA and organizations like the Red Cross offer shelters and transitional housing. You can access services by dialing 211 or using FEMA’s online resources.
Mental Health and Community Support: Various support lines provide emotional assistance to residents coping with disaster stress. The Disaster Distress Helpline offers free, 24/7 counseling.
These initiatives aim to stabilize the region, supporting immediate recovery needs and long-term rebuilding efforts.
SBA Disaster Loans Available for Businesses Impacted by Hurricanes Helene and Milton
Helene and Milton have left a trail of devastation across the southeastern U.S., particularly affecting Florida, Georgia, the Carolinas, Tennessee, and Virginia. Businesses in these regions face severe challenges, from infrastructure damage to operational disruptions. Fortunately, the Small Business Administration (SBA) offers vital disaster relief loans to help these businesses recover and rebuild.
Types of SBA Disaster Loans
Business Physical Disaster Loans
Eligible businesses and private nonprofits can receive up to $2 million to cover losses not insured or reimbursed by FEMA. Funds can be used for repairing or replacing:
Real property
Machinery and equipment
Fixtures, inventory, and leasehold improvements
Terms:
First payment deferred for 12 months
No interest for the first year
Interest rates capped at 4% for those without other credit options, or 8% otherwise
Repayment terms up to 30 years
Collateral: Required for loans over $50,000. Real estate is preferred, but loans under $200,000 don’t require a primary residence as collateral if other assets are available.
Economic Injury Disaster Loans (EIDL)
EIDL provides working capital to cover ongoing expenses like rent, utilities, and debt payments for businesses that face substantial economic injury. Note: It doesn’t cover lost profits.
Eligibility: Businesses must prove they can’t secure credit elsewhere and are in a declared disaster zone. Funds can’t be used for expansion or refinancing.
Military Reservist Economic Injury Loans (MREIDL)
Designed for businesses whose key employees are called to active duty, these loans help cover operational costs during their absence. The maximum loan is $2 million, based on the business's economic injury.
Key Takeaway
The SBA’s disaster relief programs provide essential financial support to help businesses weather the aftermath of natural disasters like Hurricanes Helene and Milton. While insurance payouts can be slow and incomplete, SBA loans offer quicker, flexible funding options. These programs not only address immediate needs but also support long-term recovery and disaster mitigation, helping to strengthen businesses against future disruptions.
IRS Tax Relief for Hurricane Milton Victims in Florida
Filing Deadlines Extended to May 1, 2025
In a recent announcement, the Internal Revenue Service (IRS) has extended tax relief to individuals and businesses impacted by Hurricane Milton, which began on October 5, 2024. This relief offers much-needed flexibility by extending filing and payment deadlines to May 1, 2025, for affected taxpayers across Florida.
Who Is Covered?
Following the disaster declaration from FEMA, residents and businesses in all 67 counties in Florida are eligible for this relief. These include areas previously affected by Hurricane Debby and Hurricane Helene, ensuring statewide tax deadline extensions.
What Does the Relief Cover?
Affected taxpayers now have until May 1, 2025, to complete various tax-related actions that were originally due between October 5, 2024, and May 1, 2025. This extension applies to:
2024 Tax Returns: Includes returns normally due in March or April 2025.
2023 Returns with Extensions: Calendar-year 2023 individual and corporate returns with valid extensions.
Quarterly Estimated Tax Payments: Payments due on January 15, 2025, and April 15, 2025.
Quarterly Payroll and Excise Tax Returns: Returns due on October 31, 2024, January 31, 2025, and April 30, 2025.
Deposit Penalty Relief: Penalties on payroll and excise tax deposits due between October 5, 2024, and October 21, 2024, are waived if deposits are made by October 21, 2024.
The IRS also allows additional time for other time-sensitive acts, such as filing Form 5500 series returns and conducting like-kind exchanges of property.
Automatic Relief and How to Request It
The IRS will automatically apply this relief to taxpayers in the affected areas. If you reside or operate a business outside the disaster zone but are eligible for relief due to records located in the disaster area, you can contact the IRS disaster hotline at 866-562-5227.
Casualty Loss Deductions
Taxpayers impacted by Hurricane Milton can opt to claim disaster-related casualty losses on either their 2024 tax return or their 2023 return. Losses not covered by insurance can be deducted using Form 4684. Be sure to include FEMA declaration number FEMA-3622-EM when filing.
Additional Benefits
The IRS is waiving fees for obtaining copies of previously filed tax returns for affected taxpayers. Additionally, disaster relief payments for personal and property damages may be excluded from gross income. Affected individuals participating in retirement plans may also access special disaster distributions and hardship withdrawals.
The IRS may introduce additional measures as the recovery process unfolds.
Final Thoughts
Recovering from Hurricanes Helene and Milton will take time, but businesses in affected areas can lean on government assistance programs to rebuild stronger and more resilient. Low-interest SBA loans and tax relief measures offer crucial financial support, ensuring that no business has to face these challenges alone.
If your business is in a disaster-designated area, act quickly to access these benefits and safeguard your future. Resilience is built step by step, and with the right tools, recovery is within reach. At CPA by Choice, we remain up-to-date with all regulations, including disaster relief. We understand how busy you are running your business, please call us/message us and allow us to take care of your business’ accounting needs.
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