Business Recovery

Natural disasters can inflict huge losses on businesses. Destroyed or damaged property and loss of revenue from disruption of critical services and customer base in the aftermath pose great threats to the survival of businesses and the economic well-being of owners and employees. The Insurance Institute for Property Loss Reduction estimates that 50 percent of businesses that suffer major disasters are unable to resume operations. 

According to a survey of over 1,800 large and small businesses in five major business sectors completed by the University of Delaware's Disaster Research Center, electricity is the most critical lifeline service for business operations. The Center estimates that business interruption losses from power outages alone are $3 billion to $5 billion annually. (See "The High Cost of Business Interruption," Nature's Power On Demand) 

To help your business prepare for or recover from a disaster, select from the following: 

• Disaster Recovery Planning
• Restructuring for Sustainability
• Financial Assistance Programs

Disaster Recovery Planning

Disaster recovery experts warn that contingency planning is the most effective method of minimizing loss caused by disaster. An increasing number of companies are heeding this advice and initiating disaster recovery planning to protect assets and ensure continuity of business operations in case of disaster. Additionally, many insurance companies are beginning to offer disaster planning services to their clients. Contact your insurance company to learn about their disaster planning policies and programs. 

The following links will provide your company with information and resources to prepare for disasters and to plan for swift and effective recovery: 

Emergency Management Guide for Business and Industry  
FEMA's step-by-step guide to disaster planning, response and recovery for companies of all sizes. 

Nature's Power On Demand: Renewable Energy Systems as Power Sources 
Introduces to the concept of using on-site renewable energy systems to mitigate the crippling impact of power outages. 

EPRI's Disaster Planning and Mitigation Technologies 
Assists utilities through the formation of the Disaster Recovery Business Alliance to leverage their broad community connections into a position of disaster planning leadership. 

Disaster Recovery Journal 
Examines trends and issues related to disaster planning and recovery for business. 

Rothstein Catalog on Disaster Recovery 
Provides access to hundreds of books, videos, research reports, and software products related to disaster planning and recovery for business. 

DRI International 
Works to create a base of common knowledge for the disaster recovery, business continuity planning industry through education, assistance, and the development of a resource base. 

Restructuring for Sustainability 

Like disaster ravaged communities, businesses can utilize the rebuilding process as an opportunity to implement technologies and practices that are stronger and more sustainable. An increasing number of companies are beginning to recognize that energy efficiency and pollution prevention technologies and practices are more than just ethical and regulatory considerations — they affect the bottom line. See "Clean Companies Save Money" and "When Going Green Means Staying in the Black." 

Sustainable business practices aim to maximize resource efficiency and minimize waste and pollution in order to cut costs and reduce environmental impact. Sustainable or "Green Business" is a rapidly evolving field involving private and public sector initiatives and cooperation.

Perhaps the single most influential factor that is beginning to emerge among business and industry is the realization that waste reduction, energy efficiency, and pollution prevention make economic sense. Companies are starting to understand that sustainability involves substantially more than an ethical consideration -- it can improve the bottom line and is an integral part of good business. See Exploring the Relationship Between Environmental and Financial Performance.

The following links will help you learn more about sustainable business practices and technologies and how they may be useful in disaster mitigation or in rebuilding your business: 

Crade to Cradle Certification Program
McDonough Braungart Design Chemistry (MBDC) has launched this new program to identify environmentally preferable products in five categories: materials; material reutilization and design for the environment; energy; water; and social responsibility . The C2C protocol is based on the principle that all products should be made using materials that can be recycled indefinitely with minimal environmental impact.

DOE's Building Technologies Program
Conducts research and development on technologies and practices for energy efficiency, working closely with the building industry and manufacturers; promotes energy and money-saving opportunities to builders and consumers; and works with state and local regulatory groups to improve building codes and appliance standards. 

EnviroLink Network Sustainable Business 
Provides a centralized resource for both businesses and individuals who wish to conduct business, invest, and purchase products in an economically sound and sustainable manner. 

The Florida Solar Energy Center (FSEC) offers a range of photovoltaic (PV) support strategies for disaster relief, recovery and mitigation . For more than a decade, FSEC has been involved in projects such as loaning PV equipment for use after disasters, studying the energy needs of disaster relief organizations, designing demonstration projects, conducting workshops, and providing technical support to various disaster relief and emergency management organizations. FSEC reports of interest include Photovoltaic Applications for Disaster Relief and Applying Photovoltaics to Disaster Relief .

The Natural Step
The Natural Step's mission is to accelerate global sustainability by guiding companies and governments onto an ecologically, socially and economically sustainable path. It works together with some of the largest resource users on the planet to create solutions, innovative models and tools that will lead the transition to a sustainable future.

New Orleans Rebuild Green
A community-supported effort focusing on green building technology, renewable energy, mass transit systems, and green community development that empowers local people to take control of their local resources in the rebuilding of New Orleans.

Planning for a Sustainable Future: The Link Between Hazard Mitigation and Livability
This FEMA publication booklet illustrates how communities, whether in planning for hazard mitigation before disaster strikes or in initiating recovery planning after one occurs, can integrate the concepts and principles of sustainable development into each phase of mitigation planning. The booklet also shows how disaster resistance can be a catalyst to help communities incorporate sustainable development practices into their day-to-day planning and development functions. Finally, the booklet gives real-life examples of communities that have successfully implemented sustainable development practices in their community and describes how citizens and local officials can become advocates for disaster resistance as a part of sustainable development and livability in their communities.

Rebuilding for a More Sustainable Future: An Operational Framework
This document provides guidance to the FEMA sustainability planner in the post-disaster response and recovery process. It provides an introduction to the principles and practices of sustainable development and explains the need for sustainable actions to be incorporated into the post-disaster recovery process. It is also a useful reference during non-disaster time for Federal, State, Tribal, and local emergency management officials. The guide explains sustainability tools and programs; how to operate a sustainability desk during a disaster; the role of the sustainability planner in community recovery; and Federal resources for technical assistance and funding.

Rocky Mountain Institute
A nonprofit organization that fosters the efficient and restorative use of resources to make the world secure, just, prosperous, and life-sustaining. RMI does this by inspiring business, civil society, and government to design integrative solutions that create true wealth.

Surviving the Disaster: A Small Business Disaster Management Toolkit
A resource from the Treasure Coast Regional Planning Council, focusing on disaster preparedness, hazard mitigation, and sustainable disaster recovery for small business.

SustainableBusiness.com
This website focuses entirely on sustainable business. It offers a host of useful resources to help businesses become more sustainable.

The Sustainable Building Technical Manual: Green Building Design, Construction,and Operations (PDF format) 
Provides practical instruction to architects, developers, building owners, government officials, and others in the construction and operation of institutional scale green buildings. Addresses the economics of green building; pre-design strategies; passive solar design; heating, ventilation, and air-conditioning systems; electricity; plumbing; indoor air quality; acoustics; selection of building and landscaping materials; and housekeeping.

Financial Assistance Programs

When a disaster strikes, businesses are often in need of assistance to finance rebuilding and resume operation. The U.S. Small Business Administration's Disaster Assistance Loan Program offers loans to those trying to rebuild businesses. SBA's disaster loans are "a critical source of economic stimulation in disaster ravaged communities, helping to spur employment and stabilize tax bases." 

USDA Farm Service Agency's Disaster Assistance program provides emergency loans where property loss or economic injury occur due to a natural disaster that affects farming, ranching or aquaculture operations. 

Hurricane Katrina Recovery Resources from Rural Development
Provides information for Home Repair Loan (Section 504) Borrowers, For Homeownership or Repair Loan (Section 502) Borrowers, For Apartment Residents, For Multi-Family Property Managers and Owners, For Community Facility Property Owners, For Intermediary Relending Program Participants, For Water and Waste Disposal Program Participants, For Employees.

Southern Mutual Help Association
Offers grants and specially structured loans for farmers, fishers, and others in rural areas of South Louisiana to rebuild following Hurricane Katrina.

Federation of Southern Cooperatives Land Assistance Fund
Assists farmers and rural poor people by providing long term relief to help cooperatives rebuild facilities and markets and will help with immediate direct assistance in housing, food, and water.

Mississippi Association of Cooperatives
Provides support for cooperative businesses, family farmers, and rural people to improve their lives and communities.

Louisiana Association of Business and Industry Small Business Disaster Relief Fund
Provides grants to help small businesses damaged by Hurricane Katrina get back into business as soon as possible. The grants will serve as "gap funding" to cover expenses not covered by insurance in order to bring as many enterprises as possible back on line quickly.

Farmers' Legal Action Group
Produced a book called Farmers' Guide to Disaster Assistance, which clearly describes the federal disaster assistance programs that are available to help farmers facing property, production, and income losses due to disaster. The book includes detailed citations to applicable statutes, rule, and policies to help farmers and their advisors understand and obtain federal disaster assistance.