Hurricanes, as natural disasters, cause the most damage.Texas, Florida, and Puerto Rico have recently experienced complete devastation in some areas caused by the severe hurricane damage and flooding.
It takes courage to rebuild lives and homes after a disaster. When it comes to small businesses, some lose a great deal and others benefit.
Damage Caused by Hurricanes
A category 4 or 5 hurricane can decrease US production and increase unemployment. It can cause gas prices to reach $5 a gallon. Also, it can depress the stock market and other financial markets.
The US is too vulnerable to hurricane damage. More than1/3 of the country’s gross domestic product comes from states along the Gulf and Atlantic coastline.The Congressional Budget Office reports 1.2 million Americans live in coastal areas at risk of substantial damage.
According to the CBO, on average, hurricanes account fora $28 billion loss a year. Florida damage makes up 55{d3062e890491164f57c6904b8479001d983f92b5c4945b7299991e4d3367f513} of that, Texas – 13{d3062e890491164f57c6904b8479001d983f92b5c4945b7299991e4d3367f513}, and Louisiana – 9{d3062e890491164f57c6904b8479001d983f92b5c4945b7299991e4d3367f513}.The average annual damage costs are expected to reach $39 billion by 2075. Nearly half of that gain is caused by climate change. The other half stems from increased development along US coastlines.
According to the Goldman Sachs Group, Inc. a leading global investment banking, securities and investment management firm, Hurricanes Harvey and Irma will make US growth fall in Q3 by 1{d3062e890491164f57c6904b8479001d983f92b5c4945b7299991e4d3367f513}.The September employment report is anticipated to get reduced by 100.000 jobs because of Hurricane Harvey. As for rebuilding, it’ll increase growth in Q4, i.e. during October – December.
US Small Businesses after Hurricanes
In fact, not every small business is able to rebuild after a natural disaster. 75{d3062e890491164f57c6904b8479001d983f92b5c4945b7299991e4d3367f513} of small businesses don’t have a disaster plan in place. The Federal Emergency Management Agency (FEMA) reports that 40{d3062e890491164f57c6904b8479001d983f92b5c4945b7299991e4d3367f513}of small businesses aren’t able to reopen their doors after a natural disaster because of the high costs of repairing damages. Even if a small business reopens, 52{d3062e890491164f57c6904b8479001d983f92b5c4945b7299991e4d3367f513}of owners need at least 3 months to recover.
Disasters are a tragedy for many small businesses, but there are also businesses that can benefitto a great extent.These include disaster recovery businesses and the ones operating in the construction industry.
There are several things that small business should do immediately after a hurricane, such as contacting the insurance agent, organizing one’s records, looking for recovery financing, and watching out for scams. One of the most important steps to take is to apply for a low-interest disaster loanor get a business cash advance from a reputable business funding provider.
All people and all small businesses should be prepared for the next disaster. It’s critical for small business owners to figure out the most important components of their business and develop a plan to protect those. This refers to employees, data, power, phones, Internet, building access, and more.
So don’t fail to review your emergency preparedness plan on a regular basis, including your insurance coverage. Collect the information you’d need after a disaster, such as the contact information with your insurer, access to financial and customer accounts and data backup.
Business Funding expert, Nathan Hale, founded First American Merchant with his eyes set on helping the backbone of our country, small business owners. His passions include writing/producing music, and travel. First American Merchant is America’s Best business cash advance company, serving both traditional and high-risk Businesses.
