State Reps. introducing bill supporting small businesses impacted by natural disasters

HARRISBURG, Pa. (WHTM) — A State House Representative will soon introduce a bipartisan bill that is designed to assist small businesses that are impacted by natural disasters.

According to the release, State Rep. Tarik Khan (D), along side Rep. Jamie Flick (R), Rep. Mary Jo Daley (D), Rep. Jason Oritay (R), and Rep. Jose Giral (D) will be introducing the new small business legislation.

Specifically, this new bill would create a Small Business Catastrophe Savings Account, which would allow small businesses to deposit pre-tax dollars into a designated savings account. These small businesses would then be able to deduct this amount from their taxes.

As per the legislation, small businesses would only be able to use these funds to help recover from a natural disaster when their insurance claim doesn’t cover the full cost of rebuilding.

“Small businesses are the backbone of our local economies, and we must do all that we can to ensure a natural disaster — that they have no control over — does not completely upend their business,” Rep. Khan said. “This legislation is fair and gives these businesses the opportunity to be better prepared financially in the case of one of these catastrophes.”

Lawmakers say that they believe this legislation would incentivize small businesses to put money aside in preparation of catastrophes, which will will allow them to keep their business operational in the event of an unforeseen disaster.

“Natural disasters can have a horrific effect on small businesses,” Rep. Giral said. “This legislation will give them an outlet to be better prepared to deal with the damage these disasters cause.”

abc27 news will keep you updated as more information becomes available.

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