The US Small Business Administration received 11,000 applications for businesses that suffered losses due to disaster storm ‘Irene’. James Rivera, associate administrator of SBA’s office for Disaster Assistance says that the number could be have been much smaller if businesses remained prepared for the disaster before it actually took place.
The SBA’s perspective is that if there is solid business continuity plan in place then there is really no need of disaster loans. The remarks from ‘Rivera’ came during a webinar on Wednesday that is being hosted by ‘Small Business Administration’ and ‘Agility Recovery’. September is considered National Preparedness Month.
‘Disaster Recovery Plan’ is being instituted by 35 percent of SMEs and it is being surveyed by Gartner Inc – a technology firm. According to Insurance Information Institute, after a man-made or natural disaster, 15 to 40 percent of businesses fail. This year has proved to be one of the costliest in terms of natural disaster. There has been wildfire in South and Southwest, earthquakes have hit the rare East Coast and floods have ruined the country.
Claims for catastrophic losses have been estimated to be around $17 billion during the first half of the year. It has been $13 billion for the year 2010. Programs that provide low-interest disaster assistance loans to homeowners and businesses suffering losses are being initiated by Small Business Administration. In Bucks and Montgomery counties, Federal disaster declarations allow homeowners and businesses to apply for assistance.
This article was submitted by Raj Tulshan, Director of Business Development of Biz2Credit. Biz2Credit is a small business marketplace that connects entrepreneurs with financing options and advice to grow their business. Send all questions to firstname.lastname@example.org