Hurricane Beryl hit Texas earlier in July, knocking out electricity to nearly 3 million homes and businesses that lasted over a week. Despite the power being restored, several businesses were impacted by the hurricane.
The National Oceanic and Atmospheric Administration has predicted an “above-normal hurricane activity in the Atlantic basin” this year from June 1 to Nov. 30, which means small businesses must be prepared.
“Severe weather and emergencies can happen at any moment, which is why individuals and communities need to be prepared today,” said FEMA Deputy Administrator Erik A. Hooks.
What the Small Business Administration is offering
Due to Beryl’s might, small businesses in Texas suffered infrastructural damage and inventory loss during the power outage.
The Perryman Group estimates that the impact of Hurricane Beryl could lead to economic losses worth $4.6 billion in total expenditures, $2.0 billion in gross product, and $1.3 billion in earnings in Texas. For the country, these could go up to $7.0 billion in total expenditures, $3.0 billion in gross product, and $2.0 billion in earnings, including Texas and spillover areas.
AccuWeather Inc., a commercial weather forecasting service provider, estimates the cost to be $28-32 billion in the United States.
“Due to the severe property damage and economic losses inflicted on Texas businesses, we want to provide every available service to help get them back on their feet.”
– Francisco Sánchez Jr. – SBA Associate Administrator for the Office of Disaster Recovery
The U.S. Small Business Administration announced the opening of SBA business recovery centers in Galveston and Brazoria to provide a “wide range” of free services to businesses impacted by Hurricane Beryl, which occurred between July 5 and July 9. In May, the SBA opened another center in Houston to provide services to businesses impacted by severe storms, straight-line winds, tornadoes, and flooding in April.
“Due to the severe property damage and economic losses inflicted on Texas businesses, we want to provide every available service to help get them back on their feet,” said Francisco Sánchez, Jr., associate administrator for the Office of Disaster Recovery and Resilience at the SBA. “The center will provide a one-stop location for businesses to access a variety of specialized help. SBA customer service representatives will be available to meet individually with each business owner.”
Businesses will not need an appointment.
One of the services the SBA is offering is a disaster loan of up to $2 million, which allows businesses of any size, including nonprofit organizations, to “to repair or replace damaged or destroyed real estate, machinery and equipment, inventory, and other business assets.”
The interest rates range from 4% for businesses to 3.25% for private nonprofit organizations and 2.688% for homeowners and renters with terms up to 30 years. No interest will be accrued during the first year beginning the date of the hurricane.
“SBA’s mission-driven team stands ready to help Texas’s small businesses and residents impacted by Hurricane Beryl,” said SBA administrator Isabella Casillas Guzman. “We’re committed to providing federal disaster loans swiftly and efficiently, with a customer-centric approach to help businesses and communities recover and rebuild.”
The loans would cover losses that are not fully covered by insurance or other recoveries.
For small businesses, small agricultural cooperatives, small businesses engaged in aquaculture, and most private nonprofit organizations, the SBA offers Economic Injury Disaster Loans to mitigate the damage caused by disasters. Economic injury assistance is available to businesses regardless of any property damage.
The last date to apply for property damage is Sept. 10, the release says. The deadline to file for for economic injury is April 14.
Steps to follow before and after a natural disaster
- Go through your insurance policy to see what you need: Check if it includes flood insurance, and if it does not, it can be purchased,
- Back up all your data: Make sure all information can be accessed outside the business property,
- Keep a record of your assets: Documenting assets makes it easier to gauge the damage when the storm passes. Keep an evacuation plan ready.
How to apply for a SBA disaster loan
Businesses can apply for a loan online and get more disaster assistance information at SBA.gov/disaster or by calling 800-659-2955. You can apply for both an SBA disaster loan and FEMA for assistance simultaneously.
Business recovery centers also operate at the University of Houston Downtown, Marilyn Davies College of Business, Trini Mendenhall Community Center in Houston, East Montgomery County Improvement District in New Caney, the Innovation Black Chamber of Commerce in Killeen, TX, and the MarMo Plaza in Galveston.
