5 Disaster Relief Options for Small Business Owners
In this post, we’ve compiled five options related to disaster relief for small businesses. Whether your business has already experienced the devastation of hurricanes, or you simply want to be prepared for the future, these tips will benefit you.
Have You Considered these Disaster Relief Options?
1. Federal Hurricane Relief for Business
Disaster assistance for businesses is provided by the government through many avenues. Most relevant for small business owners, though, are the SBA disaster loans. If you’ve been affected by Hurricane Maria, Harvey or Irma, you can find information about getting these disaster loans on the SBA website.
You’ll need to double check your eligibility, but if you’re in an area where the President declared an emergency, you are probably eligible. Even if you’re late to apply, it’s worth giving it a try.
The SBA has helped many businesses get through rough times. After Hurricane Katrina, Rita and Wilma, the SBA approved $10.9 billion in disaster loans for small businesses. Similarly, the SBA loaned out $2.5 billion for disaster recovery after Hurricane Sandy. The approval rate for loans after Katrina, Rita and Wilma was 45 percent. And for Sandy, the approval rate was 53 percent.
2. Mortgage Payment Relief
Everyone needs a roof over their head, which means mortgage or rent payments. Taking care of your home should come first, and getting help with that can make or break your business. The Department of Housing and Urban Development, or FHA, in many cases, will delay foreclosure, waive late fees and even allow you to defer mortgage payments.
For borrowers with non-FHA loans, all is not lost. The FHA recommends that you contact your mortgage service provider as soon as possible to explain your situation. Often, the lender will be willing to work with you to figure something out, especially in a large-scale event like Hurricane Harvey, Irma or Maria.
Understandably, you must take care of your home before you can get your business up-and-running. Hopefully, with these resources, both will be possible.
3. Apply for Assistance
While it’s not strictly meant as disaster relief for businesses, FEMA cash grants can help you if you’re in a pinch due to natural disasters. FEMA pays out cash grants to help disaster victims with necessities like medicine and housing. Especially if you run your business out of your home, this can be extremely helpful.
4. Devise a Plan
Nationwide, a national insurance company conducted a survey of small businesses in late 2015. They found that 75 percent of small business owners did not have a disaster recovery plan. And, according to the Insurance Institute for Business & Home Safety, 25 percent of small business do not reopen after a major disaster.
No entrepreneur would start their business without having at least some type of a plan. Yet, the clear majority of small business owners don’t have a plan in place that could potentially save their business.
To start, check out free resources published by The National Fire Protection Agency (NFPA). On their website, you can find a variety of information related to emergency preparedness. This will help you make a reliable disaster recovery plan for your business.
5. Backup Your Information
Backing up your information doesn’t cost much, and it will save you a ton of time and money if anything ever goes wrong. With affordable, secure digital storage now available, there’s really no excuse to not have information backed up. Invoices, tax information, contracts and other important documents should all be digitally stored in one form or another. Google Drive, Dropbox and Box can all work as a business information repository.
Next Steps: Be Prepared
Don’t put off emergency preparations. It’s human nature to avoid doing something when it doesn’t seem urgent, but you never know when things might go wrong.
Do you have any other disaster relief tips for business owners? If so, share them with us in the comment section below.
Editorial Note: Any opinions, analyses, reviews or recommendations expressed in this article are those of the author's alone, and have not been reviewed, approved, or otherwise endorsed by any of these entities.