Recent blizzard conditions across most of the American midwest and east coast areas have shut down businesses, as well as government offices, for days on end. There has certainly been lost productivity, as well as damages caused by the storm. How does all this impact your small business?
The Toll of Severe Weather
Severe weather conditions can spell disaster for a small business that depends on the day-to-day routine of production and sales. Days without production causes inventory to deplete, go stale, or even become damaged or destroyed. Missed sales are another cause of economic loss when employees are not able to be at the business to take or fill orders.
And what if worse should happen? What if a storm causes physical damage to equipment, machinery, or your owned property where you do business? All these instances are being felt after the recent storms in February 2010 across America. The good news is that there is help available to small businesses who suffer from the effects of storm damage.
Help for Your Impacted Business
The Small Business Administration (SBA) has programs that provide disaster loans to small businesses with this type of damage. One category is Business Physical Disaster Loans, which are available to any size of business, including non-profit businesses, churches, and private universities. These loans can be used to repair property that was damaged from a disaster, including real estate, equipment and machinery, supplies, and inventory.
Another category of SBA disaster loans is the Economic Injury Disaster Loans. These loans were created to help small businesses through disaster recovery by providing working capital. Businesses that have lost cash flow due to lost sales and other disaster expenses can stay afloat with the help of this low-interest loan.
These loans are available in regions that have been declared disaster areas. Many times, a severe storm, such as the recent widespread winter snow storm, is cause for a disaster. If your business has suffered economic loss due to physical damage, or even lost sales and cash flow, you can seek help from these low-interest loans up to $2 million.
