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Article IndexBY ROHIT ARORA
COMMENTARY
Entrepreneurs can do a lot to control their destiny, but there is little they can do about the weather. Hurricane Irene's destructive path has devastated small businesses all along the eastern seaboard and Tropical Storm Lee hit New Orleans hard. In New Jersey, in Cranford, Fairfield, Paterson, Pompton Lakes and other towns are suffering, and this week's rains won't help. Irene put a financial hurting on businesses ranging from restaurants to organic food shops, fertility clinics, hardware stores, and law firms.
Businesses recovering from storm damage must have repairs made immediately, incur the deductable amounts of their insurance policies, and wait weeks or sometimes months for their claims to be processed. Being short on cash could put some of them in serious danger. Many small business owners do not have a wad of cash on hand to cover weeks—or months —of delayed revenue.
Fortunately, there are a number of financial options available to small business owners looking to rebuild. Business owners can approach the government for FEMA assistance due to the damages inflicted by the storm. Sections of North Carolina, New York, New Jersey, and Vermont have been declared federal disaster areas. FEMA money is running out, however, so small business owners must not delay. The application is available at http://www.disasterassistance.gov/.
Many businesses damaged by Hurricane Irene are also able to get loans from the Small Business Administration. The SBA grants two types of disaster loans. One is a "Physical Disaster Loan" that provides money for replacing or repairing damaged property. Such loans are extended to businesses located in federal disaster areas, and the loans extend up to $2 million. The second type of loan is "Economic Injury Disaster Loan," or EIDL.This loan is meant to help businesses pay fixed operating expenses such as rent, mortgage interest, and lease payments on equipment. Businesses are eligible to take advantage of EIDL loans even if they do not suffer damages.
Even the IRS is granting leniency. In areas that are declared storm affected, the IRS has postponed tax filing and payment deadlines for businesses and taxpayers. That means corporations now have up to October 31 to file their returns.
"We have received so many prayers and expressions of support from the local community," said Barry O'Donovan, owner of Kilkenny House, a popular Irish pub in Cranford that had more than a foot of water flood its dining room. "If for no other reason, we will rebuild just to thank all of our supporters who told us they want to be back on day one of our return. We will be back and ready to raise our glasses soon."
