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Support for Small Businesses Affected by California Wildfires

November 6th, 2007 Posted by Amelia

California Governor Schwarzenegger has directed the Employment Development Department to extend payroll tax deadlines by up to 60 days for small businesses that were hit the hardest by the state’s recent wildfires.

“Small businesses play a vital role in California’s economy and contribute so much to our state,” said Governor Schwarzenegger. “We must do everything we can to get businesses up and running again and people back to work. These actions will jumpstart that process.”

An executive order signed by the Governor will assist victims of the devastating wildfires by suspending the one-week waiting period for unemployment insurance benefits and waiving fees. In addition, state agencies will assist workers in replacing vital documents that have been lost in wildfires. They will also expedite the cleanup and debris removal processes.

The Governor also requested that the Franchise Tax Board and the Board of Equalization use their administrative powers to assist fire victims with filing extensions or relief from penalties and assessments, in an attempt to free small business owners from red tape.

“This extension is critical for the small businesses that were affected by the wildfires to bounce back from this disaster as quickly as possible,” said California Small Business Advocate Marty Keller.

Governor Schwarzenegger recently directed the Small Business Disaster Assistance Loan Guarantee Program to be activated to guarantee $7 million in loans for farms, other agricultural businesses and businesses in communities that suffered damage or significant economic loss as a result of the Southern California wildfires.

Today, a key congressional committee approved $500 million in emergency firefighting spending in the wake of California’s devastating wildfires.

The money was requested by Sen. Dianne Feinstein and Representative Jerry Lewis. The appropriation was added to a larger spending bill that’s expected to be approved by the House and Senate in the coming days.

It includes $215 million to repay money spent by the Forest Service and Interior Department last year; $150 million in new money for the Forest Service and Interior Department to fight fires, and $90 million to clear brush and downed trees that feed wildfires.

A number of other resources are available for wildfire victims, including displaced employees and small business owners. There is also $31 million to restore federal lands ravaged by fires.

More than 21 wildfires fed by unseasonable winds from Santa Barbara to San Diego, forced the Governor to declare a disaster area in much of the state. In just one day, more than half a million people had to flee their homes. While a 10-year-old boy playing with matches has admitted to setting one, the cause of other fires is still under investigation.

The U.S. Department of Labor also approved California’s request for a $50 million grant that will help hire over 3,000 workers in temporary disaster assistance jobs in the areas affected by the wildfires.

“This is a win-win grant that will help our communities recover from this disaster and also provide hard-working Californians with jobs,” said Governor Schwarzenegger. “These funds mean a new start for thousands of Californians who are reestablishing their families, businesses and lives in the wake of wildfires that devastated so much of our state.”

The $50 million National Emergency Grant was approved, with $16.7 million to be released immediately. These funds will create up to 3,125 temporary jobs in the sectors that are assisting in cleanup and rebuilding, local emergency transportation services and humanitarian purposes in areas affected by the fires.

The grant was awarded by the U.S. Department of Labor to the California Employment Development Department, and will provide immediate assistance to the counties of Los Angeles, Orange, Riverside, San Bernardino, San Diego, Santa Barbara and Ventura, the areas most affected by the wildfires.

Last week, Governor Schwarzenegger sent a letter to U.S. Secretary of Labor Elaine L. Chao advising that the state of California intended to apply for National Emergency Grant funds for the Southern California wildfires disaster.

Also last week, President Bush declared portions of Southern California a Major Disaster Area. The declaration give assistance to individuals, families and businesses such as low interest loans from the Small Business Administration, grants for temporary housing, home repairs and disaster unemployment assistance. The declaration also includes funding for restoring damaged or replacing destroyed governmental infrastructure, such as roads, utilities and essential public buildings. In addition, it includes reimbursement for a significant amount of emergency response costs and debris removal.