Businesses Are Vulnerable, Too
Protect Your Business Before a Disaster Occurs
Release Date: October 19, 2004
Release Number: 1569-008
» More Information on Minnesota Severe Storms and Flooding
OWATONNA, Minn. -- When disaster strikes, businesses can be impacted, too, as many business owners experienced in September’s flooding event in south central Minnesota. In Austin alone, 80 businesses were damaged. Floodwaters swept into some buildings leaving five feet of standing water. Floods, and other disasters, can severely damage buildings, ruin inventory and destroy records. Yet, orders still must be filled and payrolls met.
Businesses that were affected by the flooding and severe storms that occurred from September 14 to 27 might qualify for assistance from the U.S. Small Business Administration (SBA). Businesses of all sizes and non-profit organizations may apply for losses not fully covered by insurance. Loans to businesses (in declared counties) are available up to $1.5 million to repair real estate, machinery, equipment and inventory. Economic Injury Disaster Loans (EIDLs) also are available to small businesses (in declared and contiguous counties) unable to pay bills or meet operating expenses. Interest rates can be as low as 2.900 percent, and loan terms can be up to 30 years. Actual loan amounts and terms are set by the SBA and are based on each applicant’s financial condition.
Businesses can begin the disaster application process by calling the toll-free registration number 1-800-621-FEMA (3362) or 1-800-462-7585 (TTY) for the hearing and speech impaired. The toll-free telephone numbers are available 24-hours a day, seven days a week until further notice. Individuals with Internet access now have the option to register on the agency’s website at http://www.fema.gov, where valuable recovery information is also available.
But, what can a business do to help reduce losses should a disaster occur in the future? The Federal Emergency Management Agency (FEMA) and the Minnesota Department of Public Safety’s Division of Homeland Security and Emergency Management (HSEM) offer the following tips to business owners:
Do a risk-analysis for the most probable type of disaster you might have – i.e. wind, flood, snow, fire.
Develop both emergency and recovery plans for your business. Plan in advance what to do if a disaster occurs, including evacuation and shelter-in-place plans, communication procedures, and what employee assignments will be. Practice those assignments. Also, create a plan to recover your business afterwards.
Purchase flood insurance. If your community participates in the National Flood Insurance Program (NFIP), any business owner can buy flood insurance for the structure and contents. Home businesses are not covered under a homeowner’s flood insurance policy but can be insured separately. There is a 30-day waiting period before the policy becomes effective.
Protect your computer data and store backup data off-site. Back up any computer system at least once a week. Make at least three copies of essential information and store the back-up disks in a safe place, preferably off site.
Maintain an up-to-date inventory of your assets.
Make a list of critical suppliers and/or repair services needed to begin your disaster recovery. Be sure to include alternate vendors for supplies/equipment essential to your business. Keep this and other irreplaceable information such as payroll and tax records off site in a secure location.
Consider storing minimal inventory on site. One recommendation is to maintain just three to five days’ worth of inventory on hand so that when a disaster occurs, the loss isn’t as great.
Elevate or relocate major appliances, critical equipment or machinery well in advance of a flood. Items such as furnaces, water heaters, copiers, computer networks, etc. can be re-set on a raised platform base. Electrical panel boxes and outlets also can be relocated higher. Any alternate location should be above the base flood elevation at that site. Local building officials can identify for you the base flood elevation.
Be sure to first check with local authorities to determine what code requirements must be met, in any situation requiring structural changes.
More information on disaster assistance, SBA disaster loans, and how to reduce damages from future disasters can be found at the Disaster Recovery Centers operating in Albert Lea and Austin. Business owners, as well as residents, can get help filling out their SBA loan applications at the centers at these locations: St. Paul’s Lutheran Church, 2100 16th St. SW in Austin and Health Reach at 1705 S. Broadway Ave. in Albert Lea. Operating hours: Monday through Friday, 10 a.m. to 7 p.m., Saturday, 1p.m. to 5 p.m., until further notice.
For more detailed information on disaster planning for businesses, log on to www.Ready.Gov and click on “Ready Business.”
On March 1, 2003, FEMA became part of the U.S. Department of Homeland Security. FEMA's continuing mission within the new department is to lead the effort to prepare the nation for all hazards and effectively manage federal response and recovery efforts following any national incident. FEMA also initiates proactive mitigation activities, trains first responders, and manages the National Flood Insurance Program and the U.S. Fire Administration.
Last Modified: Tuesday, 19-Oct-2004 10:02:30