SBA Urges Homeowners, Renters and Businesses
to Face Risks and Prepare for the Inevitable Disaster before it
Strikes
WASHINGTON – Last year hundreds of thousands
of homes and businesses were destroyed, and billions of dollars
were lost in the destruction caused by Hurricanes Katrina, Rita
and Wilma. With the Atlantic hurricane season approaching June
1, the U.S. Small Business Administration is urging homeowners,
renters and businesses across the country to take steps to protect
their lives and property now.
"Last year’s Gulf Coast hurricanes
and this month’s flooding in New England are reminders that
no matter where you live, there’s always the potential for
a major disaster," said SBA Administrator Hector V. Barreto.
"No one is insulated from the threat of losses caused by
wind storms, floods and wildfires, power outages and other natural
and man-made disasters. These catastrophes should remind us of
the need to be prepared, to have a plan not just to survive disaster,
but to recover quickly."
Disaster preparedness begins with having adequate
insurance coverage – at least enough to rebuild your home
and replace personal belongings. Homeowners and business owners
should review their policies to see what isn’t covered. Businesses
should consider "business interruption insurance," which
helps to cover operating costs during the post-disaster shutdown
period. Flood insurance is essential; most of the 143,000 disaster
loans made by the SBA after the Gulf Coast hurricanes were for
flood damage. To find out more about the National Flood Insurance
Program, visit the Web site at www.floodsmart.gov.
Making sure your home or business property is
less vulnerable by identifying possible hazards, developing a
plan which includes establishing escape routes, keeping emergency
phone numbers handy and saving copies of important business and
personal records off-site are critical disaster preparedness strategies
suggested by the SBA.
A University of Texas study reports that 43 percent
of companies experiencing a catastrophic data loss never recover,
and half of them go out of business within two years. So businesses,
and for that matter anyone who owns a home computer, should back-up
financial records and other vital information stored on hard drives.
SCORE, a non-profit association that serves as counselors to small
businesses, suggests that those files should be stored in a portable
lockbox offsite, at least 500 miles away.
"The good news is that there are many resources
at the public’s disposal to help them prepare their families
and their businesses before disaster strikes," said Barreto.
"As recent history shows, it’s prudent to be prepared."
More preparedness tips for businesses, homeowners
and renters are available on the SBA’s Web site at www.sba.gov/disaster_recov/prepared/getready.html.
The Institute for Business and Home Safety (www.ibhs.org
) also has information on protecting your home or business. The
federal government’s preparedness Web site www.ready.gov
is another helpful resource.
Through a partnership with the Hartford, the
SBA also offers on online Webinar on preparing your business for
disaster. Access the site by clicking http://www.sba.gov/training/courses.html
and selecting "Surviving Beyond Disaster."
To date, the SBA has approved more than 146,500
disaster loans for $9.54 billion to survivors of the Gulf Coast
hurricanes. The SBA makes low-interest loans to homeowners, renters
and non-farm businesses of all sizes following a disaster declaration
by the President. Homeowners may borrow up to $200,000 to repair
or replace damaged real estate. Individuals may borrow up to $40,000
to cover losses to personal property.
Non-farm businesses and non-profit organizations
of any size may apply for up to $1.5 million to repair or replace
disaster damaged business assets and real property. Small businesses
that suffered economic losses as a direct result of the declared
disaster may apply for a working capital loan of up to $1.5 million,
even if the property was not physically damaged.
To learn more about the SBA’s disaster assistance
program, visit the Web site at www.sba.gov/disaster.
