After the Disaster: Small Business Relief from US Agencies and Organizations

Many areas of the U.S. were hit with storms. floods, tornadoes and wildfires this spring, and Hurricane Season begins tomorrow (July 1). If your small business is affected by a disaster, several federal agencies can help.

New Federal Disaster Relief Site. First, check the new federal disaster assistance website (disasterassistance.gov) which consolidates disaster assistance from all federal agencies in one place. Although there is no specific section of the site dealing with small businesses, you can select from categories of assistance available and see what programs are available from various federal agencies.

The National Disaster Relief Act of 2008 (part of the Emergency Economic Stabilization Act of 2008) provides help for individuals and small businesses affected by disaster. The Act

• Allows all taxpayers, not just those who itemize, to claim the casualty loss deduction regardless of the taxpayer’s adjusted gross income level;
  
• Removes the requirement that the net casualty loss deduction be allowed only if the casualty loss exceeds 10 percent of the taxpayer’s adjusted gross income;
  
• Provides a five-year net operating loss (NOL) carryback for qualified natural disaster losses.

For business taxpayers, the Act also:

• Allows an affected business taxpayer to deduct certain qualified disaster cleanup expenses;
  
• Allows an affected business taxpayer to deduct 50 percent of the cost of qualifying property in addition to the regular depreciation allowance that is normally available; and
  
• Increases the limits that an affected business taxpayer can expense for qualifying section 179 property.

Small Business Administration. You can apply for a disaster recovery loan for physical damage to your business and for economic damage, through the Small Business Administration.

Internal Revenue Service.

• A list of states with specific information about disaster relief or tax provisions affecting individual states
  
• Tax relief for businesses suffering disasters is included in the provisions of the National Disaster Relief Act.

  Finally, check out the Disaster Preparedness and Recovery information available from SCORE (the Service Corps of Retired Executives).