BUDGET/CRISIS/FEMA: “Some small-business owners struggling to recover from this year’s series of brutal hurricanes said the federal government needs to beef up its response.
Unlike individuals, businesses aren’t eligible for grants from the Federal Emergency Management Agency. They can receive disaster-recovery loans, but many entrepreneurs aren’t interested in taking on debt after a big storm, and some don’t qualify for a loan…
The U.S. Small Business Administration’s disaster-loan program is the main source of federal aid for flood-ravaged entrepreneurs. It allows businesses to borrow up to $2 million to repair or replace damaged property and cover other disaster-related losses. But more than half of the loan applications are typically rejected, often because they don’t have the cash flow to support repayments.
The mismatch between federal assistance and small-business needs is one of many challenges such firms face when disaster strikes. Small businesses typically operate with limited cash reserves, leaving little cushion to cover physical damage or lost revenue. Many firms lack flood insurance, and some of those that have federal flood insurance said it is inadequate.”
-Ruth Simon and Joseph De Avila, “Small Businesses Say Federal-Disaster Aid Needs Strengthening,” The Wall Street Journal online, Oct. 10, 2017 04:24pm