Hurricane Irene has hit many small businesses as it reached East coast last weekend. Business owners are approaching federal government for assistance due to the damages inflicted by the storm. North Carolina, New York, New Jersey, Vermont and Puerto Rico are already been declared as federal disaster areas. Businesses in these areas are eligible to get loans from the Small Business Administration and are also eligible for tax relief from IRS. Businesses in other areas will also be receiving federal help as the areas are declared disaster affected due to Irene storm.
In areas that are declared storm affected, IRS has postponed tax filing and payment deadlines for businesses and taxpayers. That means corporations now have up-to 0ct 31st to file their returns. The government has extended filing date of tax returns for taxpayers in federally declared disaster areas. It is also granting disaster assistance loans to businesses operating in such areas.
SBA grants two types of ‘disaster loans’. One is ‘Physical Disaster Loan’ that provides money for replacing or repairing damaged property. Such loans are extended to businesses located in federal disaster areas. The loans can extend up-to $2 million. The second type of loan is ‘Economic Injury Disaster Loan’, EIDL. This loan is meant to help businesses pay fixed operating expenses such as rent, salaries, mortgage interest and lease payment on equipments. Businesses are eligible to find this loan even if they do not suffer damages. The interest rate for both these form of loans is not more than 4 percent.
This article was submitted by Raj Tulshan, Director of Business Development of Biz2Credit. Biz2Credit is a small business marketplace that connects entrepreneurs with financing options and advice to grow their business. Send all questions to firstname.lastname@example.org