Get Financial Assistance For Workers and Small Business Owners After a Disaster

• Author: William Asher
• Posted: 2024-07-02

When natural disasters strike, small businesses may find it difficult to keep payroll running. The U.S. Small Business Administration (SBA) offers low-interest federal disaster loans, up to $2 million, for fixed debts, payroll, and accounts payable. California IBank also offers forgivable business loans. In addition, there are many other government programs and resources for small businesses. A list of resources can be found at the SBA's website.

Disaster Financial Assistance for Workers and Small Business Owners
The Small Business Administration Disaster Loan Program is another way for small business owners to get the money they need to continue operating. The Small Businesses Administration offers a federally guaranteed loan up to $10 million, equal to 10 weeks of payroll. The loan can be used to cover payroll, rent, and utility bills. In addition, if a disaster causes the loss of key employees or other property, businesses can use the funds to rehire staff.

In addition to disaster relief grants, the SBA has published additional resources for small businesses and workers affected by a major catastrophe. It provides information on how to apply for and collect lost-wage supplements in all 50 states, the District of Columbia, and U.S. territories. The CARES Act and Families First Coronavirus Response Act provide flexibility to state unemployment insurance agencies. These two laws help displaced workers and business owners who normally would not be eligible for these benefits.

The SBA's Small Business Loan Disaster Recovery Program is a tax relief program that extends critical tax benefits to small business owners and employees. The program also offers tools and resources for businesses to keep payroll and hire back laid-off employees. The program also covers applicable overhead. This means that many small businesses will be able to continue operating even after the catastrophe. This is a great opportunity for the owners of these companies to rebuild their companies and their livelihoods.

The SBA also offers emergency cash advances to help small businesses. The new bill waives the 1:1 private match requirement to receive SBA disaster grants, which is a major boon to small businesses. Additionally, the bill provides $10 million to Minority Business Development Agency grant programs to assist minority-owned businesses in the wake of a hurricane or a major natural disaster. A number of other programs are also available.

The CARES Act has expanded the eligibility criteria for EIDL to include businesses and nonprofits, as well as individuals. The Act includes nonprofits, independent contractors, and churches. It also allows SBA loan applicants to waive SBA affiliation requirements. It also expands the maximum size of the loan to $10 million. It is important for the hospitality industry, but the maximum is $25 million. It is important to know what kind of disaster insurance coverage you need.