Federal Agencies are taking steps to provide regulatory relief to small businesses affected by Hurricane Katrina. The Department of Homeland Security lists waivers and dispensations made in response to the recent natural disaster while FirstGov provides information on Hurricane Katrina Recovery. Advocacy has compiled an overview of the regulatory relief measures taken by Federal agencies. Please check these websites regularly for additional information.

The United States Small Business Administration (SBA) has reduced the red tape for small businesses participating in its programs by indefinitely delaying the recertification requirements for businesses in the SBA HUBZone program and for Small Disadvantaged Businesses (SDB) in the affected areas. Priority is being given to all 8(a) and SDB applications from small businesses in the affected area. In addition, whether you rent or own your own home, own your own business, or own a small agricultural cooperative located in a declared disaster area, and are the victim of a disaster, you may be eligible for financial assistance from SBA. SBA has home disaster loans, business physical disaster loans, and economic injury disaster loans. The loans cover things such as damaged real estate, personal property, inventory, supplies, machinery, and equipment. The number for the Customer Service Call Center for disaster victims nationwide is 1-800-659-2955. Advocacy contact: Jennifer Smith, 202-205-6943.

The SBA has also taken action to help small businesses in the Gulf Coast by increasing the surety bond limit from $2 million to $5 million, assigning four Procurement Center Representatives (PCRs) to Katrina-related contracting (PCRs are SBA contracting employees assigned to major federal buying activities for the purpose of finding small business contracting opportunities), and working with the General Services Administration to establish an up-to-date source list for small businesses and helping these businesses enter the Central Contractor Registration (CCR) database. CCR registration is a Federal requirement for all companies doing federal contract work. Advocacy contact, Major L. Clark, 202-205-6533.

The SBA announced on November 8, 2005, a one year Gulf Opportunity Pilot Loan Program (the “GO Loan Pilot”) which will provide expedited small business financing to those communities severely impacted by Hurricanes Katrina and Rita. Under this unique initiative, the Agency will provide its full (85%) guaranty and streamlined and centralized loan processing to all eligible lenders. Lenders must agree to make expedited SBA 7(a) loans available to small businesses located in those areas covered by the Presidential disaster declarations related to Hurricanes Katrina and Rita. Loans must be approved no later than September 30, 2006 and the maximum loan amount is $150,000. This pilot will be a temporary program for use in FY2006, and will expire on September 30, 2006. Advocacy contact, Major L. Clark, 202-205-6533.

On November 14, 2005, SBA amended the size eligibility criteria for its Surety Bond Guarantee (SBG) Program for construction (general or special trades) or service concerns performing contracts in the Presidentially-declared disaster areas resulting from the 2005 Hurricanes Katrina, Rita, or Wilma. This Interim Final rule (70 Fed. Reg. 69,048) amends the SBG size standard for some concerns by requiring them to meet either the size standard for the primary industry in which it, together with its affiliates, is engaged, or the current $6 million standard for the SBG Program, whichever is higher. The amended size standard applies only to construction and service concerns seeking SBA- guaranteed surety bonds for contracts or subcontracts, public or private, that are performed in the Presidentially-declared disaster areas resulting from the 2005 Hurricanes Katrina, Rita, or Wilma. Advocacy contact, Major L. Clark, 202-205-6533.

The United States Department of Commerce established The Hurricane Contracting Information Center (HCIC) which provides a central point of reference for businesses, especially Minority-owned businesses and Small- and Medium-sized enterprises, to register for and become aware of federal contracting opportunities in the Gulf Coast. While the HCIC does not award contracts, it's mission is to ensure that businesses understand the process and are aware when opportunities become available. Advocacy contact, Major L. Clark, 202-205-6533.

The Department of Housing and Urban Development has instructed all FHA-approved lenders to provide foreclosure relief to FHA-insured families who are affected by Hurricane Katrina. The relief includes a special 90-day moratorium on all foreclosures of FHA-insured properties in the declared disaster areas. HUD has also established a single toll-free housing hotline, 1-888-297-8685, to assist the victims of Hurricane Katrina. Deaf, hearing-impaired or other persons requiring TDD/TTY services can call 1-800-877-8339. Advocacy contact: Jennifer Smith, (202) 205-6943.

The Export Import Bank of the United States (Ex-Im Bank) has relief provisions for the next six months for exporters and financial institutions located in those portions of Mississippi, Louisiana and Alabama that have been declared federal disaster areas by the Federal Emergency Management Agency. The measure, which may be extended beyond the initial six months, will allow businesses and financial institutions that participate in Ex-Im’s programs to return to their business concerns when appropriate and without penalty. Advocacy contact: Jennifer Smith, (202) 205-6943.

The Federal Communications Commission (FCC) has extended many comment filing deadlines and waived most filing deadlines for telecommunications entities operating in Alabama, Louisiana, and Mississippi. It has also waived the FCC's numbering rules for those states and allowed non-commercial education stations to air commercial programs essential to victims of Hurricane Katrina. The FCC has requested that all disconnected telephone numbers in the disaster area be reinstated and the agency has assigned emergency telephone numbers to Hurricane Katrina relief and restoration efforts. The FCC has created a Web page to provide hurricane-related information for consumers, communications industries, and state and local governments in the areas affected by the hurricane. Advocacy contact: Eric Menge, (202) 205-6949.

The Federal Deposit Insurance Corporation (FDIC) is working cooperatively with all of the state and federal banking agencies and other organizations to determine the status of the financial institutions located in the affected areas and has established a 24-hour consumer hotline (1-877-ASK-FDIC, or 1-877-275-3342) and a dedicated web page that includes bank branch information for FDIC-insured institutions in damaged areas. Advocacy contact: Jennifer Smith, (202) 205-6943.

The Internal Revenue Service (IRS) has responded to the taxpayers that have been affected by Hurricane Katrina. The relief granted by the IRS includes extensions for filing and paying taxes, this includes income, payroll and business tax. The IRS has also waived interest, penalties and fees. Additionally, the IRS is also providing taxpayers hurt by Hurricanes Katrina, Rita, and Wilma alternative methods for estimating damages to their homes and personal property. Recent changes in the tax law allows taxpayers with certain retirement plans to make tax-favored withdrawals, recontributions, and loans. The relief may extend to taxpayers not located in the designated disaster area if their records or service providers are located within the designated disaster area. The IRS has recently produced two new publications Publication 1460 and Publication 4492 that summarize all the special provisions for those effected by Hurricanes Katrina, Rita and Wilma. Please check the IRS website regularly for additional information. Advocacy contact Candace Ewell , (202) 401-9787

The IRS has extended the filing deadline for taxpayers affected by Hurricane Katrina. Taxpayers impacted by Hurricane Katrina may apply for an automatic six-month extension for filing their 2005 returns. The change gives taxpayers until April 15, 2007 to file their 2005 returns. Additionally, the IRS is also providing taxpayers hurt by Hurricanes Katrina, Rita, and Wilma alternative methods for estimating damages to their homes and personal property. Please check the IRS website for additional information. Advocacy Contact: Candace Ewell, (202) 401-9787.

The Pipeline and Hazardous Materials Administration has issued hazardous materials exemptions to state, local and federal officials in the four states affected by Katrina. The exemptions permit state and local officials to modify federal hazardous materials transportation regulations to facilitate clean-up and recovery efforts. PHMSA has also issued advisory bulletins to pipeline operators in order to facilitate assessment and repair of the systems. Advocacy contact: Carrol Barnes, (202)205-6890.

The United States Army Corps of Engineers, in coordination with other Federal, state, and local agencies, has set emergency project permitting procedures that allow project proponents to proceed with projects without waiting for Corps of Engineers approval otherwise required under a variety of Federal statutes, including section 10 of the Rivers and Harbors Act and section 404 of the Clean Water Act. The Corps of Engineers has not waived mitigation requirements, and projects completed using this emergency procedure may be required to mitigate environmental impacts after project completion. Advocacy contact: Michael See, (202) 619-0312.

The United States Department of Health and Human Services (HHS) has waived certain conditions of participation and other legal requirements and regulations under Titles XVIII, XIX, and XX of the Social Security Act for Medicare, Medicaid and SCHIP programs (State Children's Health Insurance Program). These waived provisions allow the states included in the declaration of emergency (Florida, Alabama, Louisiana and Mississippi) and responding health care providers and facilities to apply, and be reimbursed for, certain health care items and services. Advocacy contact: Linwood Rayford, (202)401-6880.

The United States Department of Labor, Occupational and Health Administration (OSHA) is providing information focusing on safety and health hazards issues that may affect employers and workers involved in cleanup and recovery operations in the wake of Hurricane Katrina. OSHA plans to update this site regularly throughout the recovery phase of the operation on the Gulf Coast.  Advocacy contact: Bruce Lundegren, (202) 205-6144.

 

*This information on this page was last updated September 2006.