If you are a business owner or employee of a business that has been affected by a recent natural disaster, check here for information about your next steps.
The EDC has worked with various partners to compile a comprehensive list of local, state and government resources and benefits for businesses affected by disasters. Resources listed below include potentially available funding to help rebuild, cover payroll, tax credits and incentives, and help filing claims.
Businesses of all sizes and private nonprofit organizations may borrow up to $2 million to repair or replace damaged or destroyed real estate, machinery and equipment, inventory and other business assets. SBA can also lend additional funds to businesses and homeowners to help with the cost of improvements to protect, prevent or minimize the same type of disaster damage from occurring in the future. For small businesses, small agricultural cooperatives, small businesses engaged in aquaculture and most private nonprofit organizations of any size, SBA offers Economic Injury Disaster Loans to help meet working capital needs caused by the disaster. Economic injury assistance is available to businesses regardless of any property damage. Interest rates can be as low as 3 percent for businesses and 2.75 percent for private nonprofit organizations with terms up to 30 years.
The United States Department of Agriculture (USDA) offers several disaster assistance programs for losses to livestock, crops, grazing lands, equipment, and more.
Up to $50,000 in loans for businesses impacted by recent fires and COVID-19. Loan details include 5% fixed interest rate, 3 or 5 year loan term, waived application fee, reduced closing fee of 3%, interest-only during the first 6 months (principal deferred), and no prepayment penalties. Loans are subject to approval.
Low interest and state-guaranteed business loans and microloans affected by a disaster. Small businesses, including small farms, nurseries, agriculture-related enterprises and nonprofits that have suffered an economic loss and/or physical damage may apply for the Disaster Relief Loan Guarantee Program (DRLGP) which offers loans up to $1 million for Disaster Relief Borrowers.
Businesses may be eligible for a state tax deduction equal to the change in market value of the property minus the value of insurance payouts. If a business owner has no insurance, they can still claim a disaster loss. Business owners can apply the loss to the current tax year, or to the previous tax year to generate a quick tax refund. For more information readFranchise Tax Board Publication 1034.
Emergency tax or fee relief is available from the California Department of Tax and Fee Administration (CDTFA) for taxpayers who have been directly affected by disasters declared as state of emergencies, both within California and nationally. Available services may include the extension of tax return due dates, relief of penalty and interest, or replacement copies of records lost due to disasters.
Insurance coverage may vary based on your provider and policy type. For general questions, the California department of insurance may be a resource. Specific questions should be addressed by your insurance provider. Learn more by calling your insurance agent.
Properties damaged or lost by disasters can be reassessed at a lower property tax value. Visit the County Assessor’s Office for more information. Residents or business owners whose property suffered more than $10,000 in value loss may be eligible.
A resident or business owner may transfer the base year value of a property to a new, replacement property if the old property is unfit to live in (residential) or to use (nonresidential). Property must be designated as toxic or an environmental hazard (chemicals, petroleum, hazardous materials, etc. released by the fire) to be eligible.
Businesses may qualify for partial or full exemption of state sales and use tax on certain manufacturing and research equipment purchases and leases. Eligibility includes manufacturing, biotechnology, alternative energy, and physical, engineering, and life sciences companies.
5% state sales tax exception for the sale, storage, use, or consumption of new farm equipment or parts. Eligibility includes livestock/agricultural businesses, including horse farms and vineyards. SIC Codes 0111-0291 and 07110783.
Those in a disaster area may be eligible for Disaster Unemployment Assistance, which can cover those who cannot work because their workplace is damaged or destroyed, is unreachable due to an evacuation order, or they cannot work due to a disaster related injury.
Those who are not directly unemployed due to the fires should still contact Job Link to potentially receive traditional Unemployment Insurance.
Emergency Preparedness: Whether you are an artist, creative professional, or arts organization manager – it pays (both in time and money) to have an emergency preparedness plan.
Emergency Resources: Provides lists of emergency resources for artists and arts organizations, sorted by discipline, followed by general assistance organizations. These resources are available for a variety reasons – from natural disasters to personal medical needs.
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