Hurricane Katrina Disaster Assistance for Small Business Owners

Until now, I have not yet written anything regarding Hurricane Katrina. I've started writing about it three or four times, and I simply didn't know what to say that hadn't already been said by so many other people. My heart goes out to all those affected by this tragedy.

Small business owners have been especially hard hit by Katrina. For so many entrepreneurs, your business is not just your livelihood, it is part of your identity, an extension of yourself. Many business owners have lost their employees and customers, in addition to inventory and facilities. If you are one of those business owners affected by Katrina (and one of the fortunate few who's in a position to read this), there is special help available to you as a business owner in addition to the general relief efforts:

U.S. Small Business Administration Disaster Recovery - The SBA provides low-interest loans to help business owners recover and rebuild both personal and business property, plus local centers to assist business owners with the filing process and other needs:

SBA offers loans up to $200,000 to repair disaster damaged primary residences. Homeowners and renters are eligible for loans up to $40,000 to replace personal property such as furniture and clothing. Loans to businesses of all sizes and non-profit organizations are available up to $1.5 million to repair damage to real estate, machinery, equipment and inventory. Economic Injury Disaster Loans (EIDLs) are also available to small businesses unable to pay bills or meet operating expenses.

Interest rates can be as low as 2.68 percent for homeowners and renters and 4 percent for businesses with terms up to 30 years. Loan amounts and terms are set by SBA and are based upon each applicant’s financial condition.

Disaster Unemployment Assistance for the Self-Employed - The U.S. Department of Labor provides unemployment assistance to certain self-employed individuals who were not eligible for standard unemployment for a period of up to 26 weeks after the disaster.

FEMA Online Registration - You can register for federal aid from FEMA online. FEMA doesn't offer business assistance directly, but can provide grants up to $26,200 per person for housing and other needs. This is, of course, particularly important if you run a home-based business.

IRS Disaster Tax Relief - The Internal Revenue Service provides some small relief in that there is an automatic extension for certain tax filings until October 31, 2005, with no penalties or interest. The bad news is yes, you still have to pay them.

FDIC Bank Status - The Federal Deposit Insurance Corporation provides information on the status of banks in the affected area, plus helpful banking tips and answers to frequently-asked questions for customers of banks in the area.

Hurricane Katrina Jobs - Our Job Search Guide, Alison Doyle, has provided a list of resources listing Katrina-related jobs. Many of these are contract/temporary, and may be a way to help entrepreneurs get back on their feet economically while rebuilding their primary business.