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By Janita R. Stewart, SBA’s Mississippi District Director
Hurricane season is upon the Magnolia state and therefore it is time to take precautions to reduce risks to your small business during this season. The 2022 hurricane season started on June 1st but it is never too late to prepare for natural disasters.
For many Mississippians, hurricane season immediately brings to mind two named historic storms: Camille and Katrina (amongst others). These storms ravished parts of our state decimating both homes and businesses and even more sadly, brought on fatalities. Though more than three decades separated both storms, for many Mississippians, Katrina’s violent surge served to invoke memories of Camille’s destruction and intensity. In the wake of either hurricane, what matters most is what you do next and how you prepare to do it.
The threat posed by hurricanes to lives and property is paramount, and hurricanes can cause severe business interruptions therefore, having a comprehensive business continuity plan is essential to help mitigate your risk and safeguard your small business and employees’ wellbeing before and after a hurricane strikes.
In the face of these realities, the important thing is not to panic but to prepare. The U.S. Small Business Administration (SBA) offers long-term financial assistance for both homes and businesses in the wake of declared disasters. For our beloved communities, we offer the only federal assistance program that provides private property owners an affordable way to mitigate disaster impacts and protect their homes, families, businesses, employees, and livelihoods against disasters. These funds can be used by property owners to begin the process of reclaiming their lives and here are ways SBA disaster loan funds may be used:
- Eligible losses not covered by insurance or funding from FEMA, refinance an existing mortgage, pay for mitigation and protective upgrades, relocate to a safer and lower-risk area, and more. And low, fixed interest rates amortized over 30 years for low monthly payments offer an affordable way for property owners to fully repair/replace their disaster losses not covered by other means.
- Cover up to 20 percent of their total physical losses, as verified by SBA, to incorporate additional protective measures to mitigate future damage and losses against the next disaster.
- Repair or replace personal property.
- Help small businesses, small agricultural cooperatives, and most private nonprofit organizations located in a declared disaster area rebuild after suffering a substantial loss.
For 2022, the National Hurricane Center has predicted an “above normal” season for the Atlantic for the formation of hurricanes. When an active hurricane season is predicted, the SBA wants to help you prepare your business for a storm and cope with the aftermath and clean-up. Being prepared is essential to minimizing storm exposures and ensuring your business can be back up and running as soon as possible.
In the spirit of preparation, here are a variety of well-known ways in which small businesses can prepare for this year’s hurricane season:
- Establish a communications plan and subscribe to local emergency management alerts.
- Protect vital information in the cloud.
- Review insurance coverage, consider business interruption insurance, and take a video inventory of property and assets.
- Complete facilities and operations planning; consider e-commerce solutions or temporary alternative locations to resume operations quickly and evaluate supply chains.
- Engage in pre-disaster contract development opportunities.
- Practice and test your plan with managers and staff.
The SBA has compiled the following guidelines to assist you in creating a clear hurricane plan that can help your business to minimize losses and property damage and get back in business quickly following a storm.
In addition, SBA resource partners, who provide free and confidential assistance, are available to help small businesses through the steps of rebuilding your small business and you can get preparedness advice and guidance on how to recover directly from our local resource partners: Resource Partners – including the Small Business Development Centers, Women’s Business Centers, SCORE, and Veterans Business Outreach Centers, and Community Navigators for mentoring, training, and assistance in navigating government resources.
SBA is committed to helping you overcome any obstacle. We are here to help you prepare your business for hurricanes and other disasters. Visit SBA.gov/Disaster to learn more. You may also reach out to our Mississippi District and Gulfport Branch Offices at www.sba.gov/ms or calling 601-965-4378.
MageeNews.com is an online news source serving Simpson and surrounding counties as well as the State of Mississippi.