GHRA

Greater Houston Retailers Cooperative Association, Inc.

Hurricane Harvey Relief Information

Internal Revenue Service (IRS) Tax Relief

Victims of Hurricane Harvey that took place beginning on Aug. 23, 2017 in parts of Texas may qualify for tax relief from the Internal Revenue Service. The President has declared that a major disaster exists in the State of Texas. Following the recent disaster declaration for individual assistance issued by the Federal Emergency Management Agency, the IRS announced today that affected taxpayers in Texas will receive tax relief. Individuals who reside or have a business in Aransas, Bee, Brazoria, Calhoun, Chambers, Fort Bend, Galveston, Goliad, Harris, Jackson, Kleberg, Liberty, Matagorda, Nueces, Refugio, San Patricio, Victoria, and Wharton Counties may qualify for tax relief. The declaration permits the IRS to postpone certain deadlines for taxpayers who reside or have a business in the disaster area. For instance, certain deadlines falling on or after Aug. 23, 2017 and before Jan. 31, 2018, are granted additional time to file through Jan. 31, 2018. This includes taxpayers who had a valid extension to file their 2016 return that was due to run out on Oct. 16, 2017. It also includes the quarterly estimated income tax payments originally due on Sept. 15, 2017 and Jan. 16, 2018, and the quarterly payroll and excise tax returns normally due on Oct. 31, 2017. In addition, penalties on payroll and excise tax deposits due on or after Aug. 23, 2017, and before Sept. 7, 2017, will be abated as long as the deposits were made by Sept. 7, 2017. If an affected taxpayer receives a late filing or late payment penalty notice from the IRS that has an original or extended filing, payment or deposit due date that falls within the postponement period, the taxpayer should call the telephone number on the notice to have the IRS abate the penalty. Affected taxpayers in a federally declared disaster area have the option of claiming disasterrelated casualty losses on their federal income tax return for either the year in which the event occurred. Individuals may deduct personal property losses that are not covered by insurance or other reimbursements. Affected taxpayers claiming the disaster loss on a 2016 return should put the Disaster Designation, “Texas, Hurricane Harvey” at the top of the form so that the IRS can expedite the processing of the refund.

Claiming Casualty & Theft Losses

A casualty occurs when your property is damaged as a result of a disaster such as a storm, fire, car accident, or similar event. A theft occurs when someone steals your property.

Proof of Loss

Casualty loss proof

For a casualty loss, you should be able to show all of the following:

We strongly recommend that those affected must take as many pictures as possible to show the casualty/theft losses. We also strongly recommend you keep any/all documentation related to any casualty/theft losses that you may plan to claim on your business/individual tax returns.

For those affected during Hurricane Harvey following is a small write up that explains type of help available.

Please note that this is not a comprehensive list. In the next few days additional information will be shared with you for other types of help that may be available:

For Individuals:

Please visit https://www.disasterassistance.gov/ and apply online right away. The application process is very simple and takes less than 10 minutes.

For Businesses:

FEMA does not offer grant assistance to businesses and farmers.

Business and farm loans are available to people who have suffered damage to business property or economic injury.

These low-interest loans are available through the Small Business Administration (SBA) and the Farm Service Agency (FSA), to repair or replace damaged property not covered by insurance, and to provide working capital.

Disaster Loans:

SBA provides low-interest disaster loans to businesses of all sizes, private nonprofit organizations, homeowners, and renters. SBA disaster loans can be used to repair or replace the following items damaged or destroyed in a declared disaster:

Since Hurricane Harvey is a disaster declared area small businesses can apply for disaster loans.

Loan amounts and terms are set by SBA and are based on each applicant's financial condition.

SBA will be alongside FEMA at Disaster and Business Recovery Centers, providing assistance to disaster survivors.

At the centers, disaster survivors will be able to apply in person, and get counseling on the next steps toward recovery.

What can Disaster Proceeds be Used for:

The SBA offers several different types of disaster loans for small businesses and nonprofit organizations.

Physical Disaster Loans:

Physical Disaster Loan proceeds may be used for the repair or replacement of the following:

In addition, disaster loans to repair or replace real property or leasehold improvements may be increased by as much as 20 percent of the total amount of disaster damage to real estate and/or leasehold improvements as verified by the SBA to protect the damaged real property against possible future disasters of the same type. SBA loans will cover uninsured physical damage. If your property was insured but you are required to apply insurance proceeds to an outstanding mortgage on the damaged property, you can include the amount applied in your disaster loan application. Economic Injury Disaster Loans An EIDL can help you meet the normal financial obligations that your business or private nonprofit organization could have met had the disaster not occurred. It permits you to maintain a reasonable working capital position during the period affected by the disaster.

How to Apply for Disaster Loans?

There are 3 steps for Disaster Loan Process:

  1. Apply for Loan
  2. Property Verified and Loan Processing Decision Made
  3. Loan Closed and Funds Disbursed

Each one of the steps is explained in further details below:

  1. Apply for Loan
    1. You can apply online, in person, or by mail.
    2. Apply online at the SBA’s secure website https://disasterloan.sba.gov/ela.
    3. As a business of any size, you may borrow up to $2 million for physical damage.
    4. As a small business, small agricultural cooperative, small business engaged in aquaculture, or private non-profit organization you may borrow up to $2 million for Economic Injury.
    5. As a small business, you may apply for a maximum business loan (physical and EIDL) of $2 million.
    6. As a homeowner you may borrow up to $200,000 to repair/replace your disaster damaged primary residence.
    7. As a homeowner or renter, you may borrow up to $40,000 to repair/replace damaged personal property.
  2. Property Verified and Loan Processing Decision Made
    1. SBA reviews your credit before conducting an inspection to verify your losses.
    2. An SBA verifier will estimate the total physical loss to your disaster damaged property.
    3. A loan officer will determine your eligibility during processing, after reviewing any insurance or other recoveries. SBA can make a loan while your insurance recovery is pending.
    4. A loan officer works with you to provide all the necessary information needed to reach a loan determination.
      1. Our goal is to arrive at a decision on your application within 4 weeks.
    5. A loan officer will contact you to discuss the loan recommendation and your next steps.
      1. You will also be advised in writing of all loan decisions.
  3. Loan Closed and Funds Disbursed
    1. SBA will prepare and send your Loan Closing Documents to you for your signature.
    2. Once we receive your signed Loan Closing Documents, an initial disbursement will be made to you within 5 days:
    3. Physical damage: $25,000
    4. Economic injury (working capital): $25,000
    5. A case manager will be assigned to work with you to help you meet all loan conditions. They will also schedule subsequent disbursements until you receive the full loan amount.
    6. Your loan may be adjusted after closing due to your changing circumstances, such as increasing the loan for unexpected repair costs or reducing the loan due to additional insurance proceeds.
  4. Required Documentation:

    The following documents are required to process your application and reach a loan decision. Your Loan Officer and Case Manager will assist you to ensure that you submit the proper documentation. Approval decision and disbursement of loan funds is dependent on receipt of your documentation.

    For Businesses:

    Business Loan Application (SBA Form 5) completed and signed by business applicant.
    • IRS Form 4506-T completed and signed by Applicant business, each principal owning 20% or more of the applicant business, each general partner or managing member and, for any owner who has more than a 50% ownership in an affiliate business. (Affiliates include business parent, subsidiaries, and/or businesses with common ownership or management).
    • Complete copies, including all schedules, of the most recent Federal income tax returns for the applicant business; an explanation if not available.
    • Personal Financial Statement (SBA Form 413) completed, signed and dated by the applicant (if a sole proprietorship), each principal owning 20% or more of the applicant business, each general partner or managing member.
    • Schedule of Liabilities listing all fixed debts (SBA Form 2202 may be used).

    ADDITIONAL INFORMATION THAT MAY BE NECESSARY TO PROCESS YOUR APPLICATION:

    • Complete copies, including all schedules, of the most recent Federal income tax returns for each principal owning 20% or more of the applicant business, each general partner or managing member, and each affiliate when any owner has more than a 50% ownership in the affiliate business. Affiliates include, but are not limited to, business parents, subsidiaries, and/or other businesses with common ownership or management.
    • If the most recent Federal income tax return has not been filed, a year-end profit and loss statement and balance sheet for that tax year.
    • A current year-to-date profit and loss statement.
    • Additional Filing Requirements (SBA Form 1368) providing monthly sales figures.

    For Homeowners/Renters:

    • Home Loan Application (SBA Form 5c) completed and signed by Applicant and Co- Applicant.
    • IRS Form 4506-T completed and signed by Applicant and Co-Applicant.
Greater Houston Retailers Cooperative Association, Inc.
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12790 South Kirkwood Rd., Stafford, TX 77477 - 281.295.5300 - Fax: 281.295.5399