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Big Island Earthquake Aid Is Open: SBA Loans for Hawaii Businesses and IRS Deadlines Pushed to Feb. 1, 2027

The May 22 earthquake in South Kona now has a federal major disaster declaration. Hawaii County businesses can apply for SBA disaster loans and get IRS filing and payment deadlines moved to Feb. 1, 2027; neighbor-island businesses get working capital loans only.

By Sally6 min read

  • SBA
  • disaster loans
  • EIDL
  • IRS disaster relief
  • Hawaii
  • California
  • estimated tax
  • payroll tax

Of the 548 Big Island homes reported damaged in the May 22 earthquake in South Kona, “only two homes had earthquake insurance,” Hawaii’s congressional delegation told the White House in July. That helps explain why the federal help that opened this week matters so much there [3]. If you run a business in Hawaii County, you can now apply for SBA disaster loans, and the IRS has pushed many of your federal tax deadlines to Feb. 1, 2027 [1, 2]. If you’re on another island, part of this applies to you too.

What happened, and why it took until September

A magnitude 6.0 earthquake struck the west side of Hawaii Island on the evening of May 22, centered near Hōnaunau-Nāpōʻopoʻo [3]. According to the delegation’s letter, it set off rockslides that blocked the highway and cut power to roughly 1,330 utility customers, including commercial farm operations [3].

The damage counts came in slowly. State and local governments received reports of damage to 548 homes; a joint preliminary damage assessment looked at 313 of them and found 110 with major structural damage or destroyed [3]. The letter adds that 105 homes lost their water catchment systems, and that only 5.2% of the 548 had a standard homeowner’s policy [3]. Damage assessments were done in June, Maui Now reported [4].

Gov. Josh Green asked for a major disaster declaration on July 20 [3]. Sens. Brian Schatz and Mazie Hirono and Reps. Ed Case and Jill Tokuda, all Democrats, backed that request and asked the president to expedite assistance, particularly FEMA’s Individual Assistance program [3]. President Trump approved the declaration, FEMA-4936-DR, dated Sept. 1 [1]. FEMA announced it Sept. 2 and said further areas “may be made at a later date if requested by the state and warranted by the results of further damage assessments” [4]. Federal declarations of this kind are what open the SBA’s presidential disaster loans and let the IRS postpone deadlines under its disaster authority [1, 2].

The SBA loans: who can apply, and by when

The SBA’s notice, published Sept. 9, splits the state in two [1]:

  • Hawaii County is the primary county. Businesses there can apply for physical damage loans (to repair or replace property) and economic injury loans (working capital to cover bills the disaster left you unable to pay) [1].
  • Honolulu, Kalawao, Kauai and Maui counties are contiguous counties, eligible for economic injury loans only [1].

Physical damage applications are due Nov. 1, 2026, and economic injury applications are due June 1, 2027 [1]. Here’s the short version on rates: a business that can’t get credit elsewhere pays 4% on either type of loan, a business that can pays 8% on a physical damage loan, and private nonprofits pay 3.625% [1]. FEMA’s announcement says to file with your insurer first and then apply [4].

If the SBA disaster loan process is new to you, my August column on the Iowa and Pennsylvania storm loans walks through the two loan types in more detail.

Your federal tax deadlines in Hawaii County

The IRS announced its relief on Sept. 10, in release HI-2026-03 [2]. Individuals and businesses that live or have their principal place of business in Hawaii County now have until Feb. 1, 2027, for most federal returns and payments that originally came due on or after May 22, 2026 [2]. For a small business, the big ones are:

  • Estimated tax. Payments originally due on or after May 22 are postponed to Feb. 1, with no estimated tax penalty if paid by then [2]. That includes the Sept. 15 payment I wrote about in the column on the IRS underpayment rate.
  • Quarterly payroll returns. The returns normally due July 31 and Nov. 2, 2026, move to Feb. 1 [2].
  • Extended 2025 returns. If you had a valid extension on your 2025 individual return, Feb. 1 is your new deadline [2].
  • Business income tax returns, including partnership and S corporation returns with an original or extended due date before Feb. 1 [2].

Now the part that trips people up. The postponement does not cover information returns in the W-2, 1094, 1095, 1097, 1098 or 1099 series, or payroll and excise tax deposits [2]. The only deposit break is penalty abatement for deposits due May 22 through June 7 that were made by June 8 [2]. Filing the payroll return and depositing the payroll tax are two separate deadlines, and this relief moves only the first.

The IRS applies the relief automatically to taxpayers it locates in the covered area [2]. If you get a late notice for a deadline in the postponement window, the IRS says to call the number on the notice to have the penalty abated [2]. Installment agreements won’t default over missed payments during the period, though interest and late-payment penalties keep accruing [2].

One newer wrinkle helps people owed money back. Public Law 119-64, the Disaster Related Extension of Deadlines Act, signed Dec. 26, 2025, treats a disaster postponement of a filing deadline as an extension when figuring the time limit on a refund claim [5]. The IRS release points to it as giving affected taxpayers more time to claim a refund or credit [2].

Does this apply to you?

A hypothetical South Kona bed-and-breakfast with three employees lost a rock wall and its water catchment tank. It’s in Hawaii County, so it can apply for a physical damage loan by Nov. 1 and an economic injury loan by June 1 [1]. Its Sept. 15 estimated payment and the payroll returns due July 31 and Nov. 2 can wait until Feb. 1 [2]. Its payroll deposits can’t, and neither can the W-2s it sends next winter [2].

A hypothetical snorkel tour operator on Maui saw bookings drop after the quake but had no damage. It can apply for an economic injury loan, since Maui County is a contiguous county [1]. It doesn’t get the IRS postponement, because the IRS relief covers taxpayers who live or have a business in Hawaii County [2]. Its tax calendar is unchanged.

A business outside Hawaii County whose records sit there, say with a bookkeeper in Kailua-Kona, can also qualify for the tax relief but has to call IRS Special Services at 866-562-5227 [2].

Also this week: a fire in San Mateo County

The SBA separately published an administrative declaration for the Sea Spray Fire of Aug. 2-3 in San Mateo County, California [6]. This one comes from the SBA Administrator rather than a presidential declaration [6]. Businesses in San Mateo and the contiguous counties of Alameda, San Francisco, Santa Clara and Santa Cruz can apply, with physical loan applications due Nov. 3, 2026, and economic injury applications due June 4, 2027, at the same 4% and 8% business rates [6].

What to do now

If your business is in Hawaii County, put two dates on the wall: Nov. 1 for the SBA physical loan and Feb. 1 for the IRS [1, 2]. If you’re on a neighbor island, the economic injury loan is the only piece open to you, and it runs to June 1, 2027 [1]. The checklist has the rest.

What I’m keeping an eye on

Nov. 1. The SBA physical damage loan window for Hawaii County closes [1]. FEMA has said more areas could be added if the state asks and assessments support it [4]; any change would show up as an amended SBA notice.

Further IRS relief. The IRS release says the agency “may provide additional disaster relief in the future” [2]. For now, Feb. 1, 2027, is the date.

— Sally