Small Business Admin. offers flood assistance loans

Private property and business owners have another avenue to get help paying for flood damage, a federal agency said Thursday.

With President Barack Obama's approval this week of individual assistance being available for damage from flooding that occurred April 3 through July 22, the Small Business Administration can help with low-interest federal disaster loans, SBA Administrator Karen G. Mills said in a press release.

"The U. S. Small Business Administration is strongly committed to providing Montana residents and business owners with the most effective and customer-focused response possible, and we will be there to provide access to federal disaster loans to help finance recovery for residents and businesses affected by the disaster, " Mills said. "Getting our businesses and communities up and running after a disaster is our highest priority at SBA. "

The declaration for individual assistance includes Hill County and the Fort Belknap Indian Reservation. It also covers Big Horn, Carbon, Cascade, Custer, Fergus, Garfield, Jefferson, Judith Basin, Lewis and Clark, Missoula, Musselshell, Petroleum, Sweet Grass, Valley and Yellowstone counties as well as the Blackfeet Indian Reservation and Crow Indian Reservation.

Before this week's declaration, only public infrastructure in eligible Montana counties and reservations was eligible for assistance paying for flood damage.

The Internal Revenue Service also has announced aid for flood victims — an extension on the tax deadlines.

The IRS postponed until June 30 certain deadlines for taxpayers who live or have a business in the disaster area. This includes the April 18 deadline for filing 2010 individual income tax returns, making income tax payments and making 2010 contributions to an individual retirement account — an IRA. It also includes the April 18 and June 15 deadlines for making estimated tax payments.

In addition, the IRS is waiving the failure-to-deposit penalties for employment and excise tax deposits due on or after April 3 and on or before April 18, as long as the deposits were made by April 18.

Any taxpayer in the eligible areas who receives a penalty notice from the IRS should call the telephone number on the notice to have the IRS abate any interest and any late filing or late payment penalties that would otherwise apply, the IRS release announcing the extenson said. Penalties or interest will be abated only for taxpayers who have an original or extended filing, payment or deposit due date, including an extended filing or payment due date, that falls within the postponement period.

Affected taxpayers who reside or have a business located outside the covered disaster area must call the toll-free IRS disaster hotline at (866) 562-5227 to request this tax relief.

Taxpayers may download forms and publications from the official IRS website, irs.gov, or order them by calling 1-800-TAX-FORM, or (800) 829-3676. The IRS toll-free number for general tax questions is (800) 829-1040.

With the SBA assistance, disaster loans up to $200,000 are available to homeowners to repair or replace damaged or destroyed real estate. Homeowners and renters are eligible for up to $40,000 to repair or replace damaged or destroyed personal property.

Businesses of any size 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 also can lend additional funds to homeowners and business owners to help with the cost of making improvements that protect, prevent or minimize the same type of disaster damage from occurring in the future.

For small businesses and most private, nonprofit organizations of any size, SBA offers Economic Injury Disaster Loans to help meet working capital needs caused by the disaster. EIDL assistance is available regardless of whether the business or nonprofit suffered any property damage.

To be eligible for any disaster assistance, people with damages from the flooding first must call the Federal Emergency Management Agency at (800) 621-FEMA (3362).

Once federal–state disaster recovery centers are opened throughout the affected area, SBA will provide one-on-one assistance to disaster loan applicants. Additional information and details on the location of disaster recovery centers is available by calling the SBA Customer Service Center at (800) 659-2955.

For more information, visit SBA's website at www.sba.gov.