Financial Assistance for Businesses and Individuals Impacted by the Derecho Storm
Sep 18, 2020
The year 2020 has become a year to once again remind us that emergencies and disasters can strike anywhere and at any time. Employers and their workers may be required to deal with an emergency when it is least expected, and proper planning is necessary to respond effectively. The Economic Alliance strives to be the resource our members turn when they don’t know what’s next. This year we’ve helped businesses answer basic and complex questions, connected them to other local, regional and federal resources, all while continuing regular services and programming benefits.
As the situation with coronavirus evolves, along with the new recovery needs due to the derecho, the Economic Alliance stands ready to help our members navigate the significant challenges they are facing. In addition to providing up to date information on coronavirus resources, we also launched our derecho storm recovery resources that include information on member businesses who’s services have been in high demand since the storm, to the financial relief and aid provided by state and federal government including:
Federal Business Disaster Loans
The U.S. Small Business Administration (SBA) offers two different federally subsidized loans to repair or replace business property that sustained damages not covered by insurance, as well as provide capital to cover any losses due to the disaster. To apply, a business must first complete a Federal Emergency Management Agency (FEMA) Application at fema.gov/disaster/4557.
The SBA offers businesses:
Iowa Small Business Utility Disruption Prevention Program
Eligibility criteria for the Iowa Small Business Utility Disruption Prevention Program has been expanded to include utility assistance for eligible small businesses and nonprofits for electric or natural gas service provided between March 17, 2020 and October 15, 2020. The program will accept applications through October 31 or until all funds have been exhausted. Visit iowaeconomicdevelopment.com/Business/energy-recovery for eligibility requirements and learn how to apply.
IRS Tax Payment Deadlines Extended
Victims of the derecho storm that affected parts of Iowa now have until Dec. 15, 2020 to file various individual and business tax returns and make tax payments. The tax relief postpones various tax filing and payment deadlines that occurred starting on Aug. 10, 2020. As a result, affected individuals and businesses will have until Dec. 15, 2020, to file returns and pay any taxes that were originally due during this period. The Dec. 15, 2020 deadline also applies to quarterly estimated income tax payments due on Sept. 15, 2020, and the quarterly payroll and excise tax returns normally due on Oct. 31, 2020. It also applies to tax-exempt organizations, operating on a calendar-year basis, that had a valid extension due to run out on Nov. 15, 2020. Businesses with extensions also have the additional time including, among others, calendar-year corporations whose 2019 extensions run out on Oct. 15, 2020. In addition, penalties on payroll and excise tax deposits due after Aug. 10 and before Aug. 25, will be abated as long as the deposits are made by Aug. 25, 2020. The current list of eligible localities is always available on the disaster relief page at irs.gov/newsroom/tax-relief-in-disaster-situations.
Disaster Unemployment Assistance
The Disaster Unemployment Assistance (DUA) program provides unemployment benefits and reemployment services to individuals who have become unemployed because of major disasters. Benefits begin with the date the individual was unemployed due to the disaster incident and can extend up to 26 weeks after the Presidential declaration date. These benefits are made available to individuals not covered by other unemployment compensation programs, such as self-employed, farmers, migrant and seasonal workers. Unemployed individuals must register with Iowa Workforce Development atiowaworkforcedevelopment.gov before they can receive DUA benefits.