WASHINGTON
– With above-average activity predicted for the 2007 Atlantic Hurricane season
beginning June 1, the U.S. Small Business Administration is urging homeowners,
renters and businesses across the country to take steps now to protect their lives,
property and businesses.
"The tornado that devastated
Greensburg, Kansas, and the nor'easter that caused flood losses in several Northeast
states are reminders that no matter where you live, there's always a possibility
of a major disaster," said SBA Administrator Steven C. Preston. "Every
threat, from wind storms, floods and wildfires, to power outages and computer
system failures remind us to be proactive when it comes to having a plan to survive
the disaster and recover quickly."
The SBA stands by,
ready to assist in the event of a disaster. During fiscal year 2006, the SBA approved
more than $11 billion in disaster loans. Most of those loans went to Gulf Coast
residents who suffered losses after Hurricanes Katrina, Rita and Wilma.
Preparing
for the worst-case scenario will ensure a quicker and less costly recovery.
Hurricane
season disaster preparedness for homes and businesses should include:
• A solid emergency response plan. Find escape routes
from the home or business and establish meeting places. Make sure everyone understands
the plan beforehand. Keep emergency phone numbers handy. Business owners should
designate a contact person to communicate with other employees, customers and
vendors. Individuals should have an out-of-state friend or family member as a
single point of contact.
• Adequate insurance. Disaster
preparedness begins with having adequate insurance coverage—at least enough
to rebuild your home or business. 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. To find out more
about the National Flood Insurance Program, visit the Web site at www.floodsmart.gov.
•
Making copies of important records, backing up data saved on computer hard drives,
and storing that information at a distant offsite location. Documents and CDs
should be stored in fire-proof safe deposit boxes.
•
Protection of windows, doors and roofing. Installing impact-resistant window and
door systems, or simple plywood shutters installed before the storm hits can enhance
their ability to resist impacts from wind-borne debris. Hire a professional to
evaluate your roof to make sure it can weather a major storm.
•
A "Disaster Survival Kit." The kit should include a flashlight, a portable
radio, extra batteries, a first-aid kit, non-perishable packaged and canned food,
bottled water, a basic tool kit, plastic bags, cash, and a throw-away camera to
take pictures of the property damage after the storm. 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.
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 http://www.sba.gov/services/disasterassistance/index.html.
Disaster Preparedness Tip Sheet for Businesses of All Sizes
The
SBA encourages business owners to prepare for the possibility of a major disaster
and offers the following tips:
• Start
the disaster plan by identifying what your operation needs to do to protect itself
in the face of a natural disaster. Even if you don't own the building where you
do business, take steps to protect your assets.
• Determine
what production machinery, computers and other essential equipment is needed to
keep your business open. Store extra supplies offsite, and make a plan for a temporary
location if your company is forced to relocate after the disaster. Be ready for
utility disruptions with a portable generator.
• Find
escape routes from the business and establish meeting places. Make sure everyone
understands the emergency plan before the storm hits. Designate a contact person
to communicate with other employees, customers and vendors.
•
Review your insurance coverage to make sure you understand what is not covered.
Most policies don't cover flood damage.
• The National
Flood Insurance Program provides coverage to property owners. Go to the NFIP Web
site at www.floodsmart.gov.
•
Consider business interruption insurance. It covers operating expenses, like utilities,
and compensates you for the income lost after a temporary closure.
•
Make back-up copies of all tax, accounting, payroll and production records and
customer data on computer hard drives, and store the records at an offsite location
at least 100 miles away. Important documents should be saved in fireproof safe
deposit boxes.
• To protect your property from wind
damage, install impact-resistant windows and door systems, or plywood shutters.
Hire a professional to evaluate your roof to make sure it can weather a major
storm.
• Develop a post-disaster communications strategy.
Keep current phone numbers for your suppliers, employees, customers, utility companies,
local media, and emergency agencies. Appoint a spokesperson to get the word out
that your company is still open and on the road to recovery, to dispel rumors
of business failure.
• 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.
Disaster
Planning Resources
