Small businesses could seek disaster grants when other aid is unavailable

The Economic Development Department may award grants to eligible small businesses. Grants could cover operating costs, repairs or replacement of business property, and other expenses caused by the disaster. A business must be in an area the governor declared a disaster and lack FEMA funding or insurance reimbursement. The department would choose recipients through a competitive review, with priority attention for businesses in greatest financial need. Grant offers depend on available funds. Applicants must describe their business and disaster losses, employees, available or expected money, and proposed use of the grant. The department may award grants by July 1, 2026. Before December 1, 2026, and each December 1 after that, it must report grant and recipient information to the Legislative Finance Committee.

The bill would put money in a disaster relief fund and appropriate $1 million to it. The fund would support the small business disaster relief program. The fund would be administered by the Economic Development Department, and its money would pay for program grants. Any money left at the end of a fiscal year would stay in the fund. The appropriation is for fiscal year 2027 and later fiscal years.