COMPENSATION FOR BUSINESS INTERRUPTION
[https://www.fema.gov/fact-sheet/compensation-business-interruption] 

Release Date: 
Jun 23, 2025 

Release Number: 
003 

Business owners impacted by the Hermit’s Peak/Calf Canyon (HPCC)
Fire, subsequent flooding and other cascading impacts can be
compensated for business interruption. This fact sheet outlines key
steps, required documentation and helpful tips to support businesses
that filed a claim seeking compensation for eligible losses. 

BACKGROUND 

The Claims Office may provide compensation for business interruption
losses caused by the fire, subsequent flooding and other impacts such
as debris flows and mold. Each business claim will be assessed using
the method that best applies to the business. A key task is
determining the time period for calculating the losses. 

COMPENSATION FOR BUSINESS INTERRUPTION LOSSES 

A claims navigator and claims reviewer will assess each claim on a
case-by-case basis. The HPCC Program and Policy Guide
[https://www.fema.gov/sites/default/files/documents/fema_hpcc-hermits-peak-calf-canyon_program-and-policy-guide.pdf]
includes information on items that may be eligible for compensation.
Eligible losses may include:  

	* INCREASED EXPENSES – temporary labor costs, advertising expenses,
temporary office relocation costs, and other additional operating
expenses that were incurred as a result of the wildfire or a covered
cascading event.  
	* TEMPORARY INTERRUPTION OR CLOSURE – lost net income based on
decreased revenue during a temporary business shutdown. 
	* LOSS OF NATURAL RESOURCES – sold as products in the normal course
of business, including timber, crops and water.  
	* WORK NOT PERFORMED – documented expenses for employees who
continued being paid after operations shut down.  
	* CANCELED CONTRACTS – terminated contracts that cannot be
reinstated after an eligible temporary closure.
	* PERMANENTLY CANCELED GRANTS – Funding that was halted and cannot
be restarted even after business reopens. 

Business owners may also seek compensation for crafts, trades,
subsistence or the arts, but must provide documents to show income
earned from these activities.  Claimants with business-related losses
are encouraged to submit copies of their income tax returns; failure
to do so may result in denial of compensation by the Claims Office. 

Businesses that are not officially registered or incorporated may
still be eligible for compensation for business losses. In these
cases, the owner may be considered for compensation as an individual,
rather than a business, but must provide documentation to verify the
general income of the enterprise. 

		_Property owned or leased by the business that was damaged as a
result of the fire or cascading event such as damage to physical
property, smoke and ash cleaning, business owned contents, damaged
inventory, business owned vehicles, etc. may be compensable as a real
property loss._

DOCUMENTATION CHECKLIST 

To begin calculating your business interruption claim, you first need
to gather key documents related to your business operations. If the
primary documents listed in the checklist
[https://www.fema.gov/fact-sheet/use-documentation-checklists-help-you-complete-your-proof-loss-form]
are unavailable due to loss or because they were not maintained,
alternative documentation may be provided. Not all documents listed
will be required in every case. We encourage you to work directly with
your navigator or claims reviewer to determine which documents are
necessary based on your specific situation.   

REQUIRED DOCUMENTATION INCLUDES: 

Business History 

	* Cancelled contracts or agreements 
	* Sales and use tax statements 

	* Articles of incorporation or articles of organization

	* Completed W-9. If this is unavailable, please contact the Internal
Revenue 
Service at (800) 829.4933 to request a copy.  

	* Licenses, agreements/compliance, or regulatory documents with
service addresses

	* Business Insurance documents

	* Business plans

	* Proof of loans secured before the fire and outstanding balances at
the time of the fire

	* Profit and Loss Statements

	* 2022 annual and monthly Profit and Loss statements  
	* 2021 annual and monthly Profit and Loss statements  

NOTE: The Claims Office will check for duplication of benefits. This
includes the state of New Mexico’s economic development grants to
individuals and the Small Business Administration’s physical damage
or economic injury disaster loans. If the Claims Office has provided
funding to repay loans related to the fire, additional compensation
will not be approved for the same losses. 

_To date the Claims Office has paid more than $2.54 billion in
compensation. _

_For information and updates, please visit the Claims Office website
at __fema.gov/hermits-peak_
[https://www.fema.gov/disaster/current/hermits-peak]_. You can also
follow our Facebook page and turn on notifications to stay up to date
about the claims process and other program announcements
at: __facebook.com/HermitsPeakCalfCanyonClaimsOffice_
[https://www.facebook.com/HermitsPeakCalfCanyonClaimsOffice]_._ 

_Para información en español, visite __fema.gov/es/hermits-peak_
[https://www.fema.gov/es/disaster/current/hermits-peak]

_For the HPCC Business Team, please
contact_ FEMA-HPCC-Business-Claims@fema.dhs.gov