June 4, 2011 was a devastating morning for buildings surrounding a vacant building at 816 Washington Avenue in Brooklyn, New York. Over 100 firefighters fought a four-alarm fire that sent six to the hospital and torched neighboring businesses. Of the Prospect Heights businesses affected by the fire, two include a coffee shop and a cell phone retailer.
The Coffee Shop
Struggling to make ends meet, the young owner of the coffee shop thought she could save some money by not paying her commercial insurance bills. She discussed this option with her parents, from whom she sought advice, and they convinced her that this was a bad idea. She took their advice and paid the bills. While the damage to the coffee shop seemed minimal, the expenses to replace the windows the firefighters broke, the water damage clean up and the smoke damage and recoverycould have easily tanked this business if the owner did not have the proper insurance coverage to pay for the restoration services.
The Cell Phone Retailer
While it had the proper insurance coverage, the cell phone retail store suffered a massive amount of water damage, which poses a potential moldhazard. The building needs large-scale restoration and the owners do not know the status of their store’s structural integrity. Therefore, the owners do not know when they can open for business again. In an interview for the website Prospect Heights Patch, the shop owner stated, “It’s like you wake up one morning and you don’t have a business anymore. Devastated. That’s exactly how you feel. It’s a hardship, we have families, we have newborns to feed, and then you have to deal with this.”
What was missing for the cell phone storeowners was a business continuity plan—a plan that outlines how to keep a business going in an event such as this. Fires, water damage and natural disasters are among the top killers of small businesses when the owners do not have a plan to recoverbefore an incident occurs. While one cannot always prevent a disaster from happening, one can prevent the need to suffer through the hardships that may follow.
In a press release today, FEMA announced that Kentucky business owners directly affected by the April 22 to May 20 storms, tornadoes and floods might be eligible for Disaster Unemployment Assistance (DUA). The DUA is a special unemployment compensation program for those who do not qualify for standard unemployment assistance through their state.
Assistance Eligibility
If you are a Kentucky business owner, in order to qualify, one of the following situations must apply to you:
You cannot run your business because of the floods, storms or tornadoes.
You cannot reach your business because of “disaster-related travel disruptions.”
You cannot work because you sustained a disaster-related injury.
You cannot operate your business or work because the storms damaged your building.
You live or own a business in one of the 17 Kentucky counties eligible for Individual Assistance through FEMA and the Kentucky Division of Emergency Management.
Disaster Assistance Filing Dates
June 24, 2011: for Boyd, Crittenden, Graves, Hardin, Hickman, Jefferson, Marshall, McCracken, Livingston, Union and Webster counties
To be determined: for Ballard, Daviess, Henderson, Lawrence, McLean and Pike counties
FEMA states:
“Unemployment payments up to 26 weeks are available for workers who temporarily lost jobs because of the storms and who don’t normally qualify for unemployment insurance benefits, such as farmers and self-employed individuals.
“Applications can be submitted at a local Office of Employment and Training. When filing a claim, self-employed individuals should bring a copy of their 2010 income tax return. Other applicants need a photo identification card and their Social Security number.
“Joint damage assessments continue in other counties and additional counties may be added for IA. Residents that suffered storm and flood related damage are encouraged to document and photo the damage and keep any repair receipts. Please report any damage to your local emergency management.”
Without a business continuity plan, a storm can shut down your operations for good if you are not prepared. Your continuity plan should also include what to do after a storm.
After the recent swarm of devastating tornadoes, residents in Arkansas, Kansas, Oklahoma, Texas and Missouri must prepare for the continuing prediction of storms. The latest tornado to hit the U.S. left 117 known victims in its wake; it is the deadliest tornado in over 60 years. MSNBC reports that about 1,500 are still missing after the recent storm.
Preparing for a Storm
Experts cannot predict the exact time a tornado will hit. Therefore, it is important for you, your family and business to have an emergency plan that you can implement at a moment’s notice. When creating your emergency disaster plan, include the following:
Know what to do if your family is not together when a storm hits. Include a meet-up spot and instructions for different scenarios. For example, think about what you should do if the kids are at school, a friend’s house or the mall, if you are at work or are out running errands. Each family member should have a list of important phone numbers written down that each person keeps in a wallet or backpack.
Know the safest location in your house in the event of a tornado warning. Keep a battery-operated radio, flashlight, whistles, safety goggles, first aid kit and your emergency disaster kit near this location. You should have enough whistles for each family member to use to call for help if any get caught under debris.
Make an emergency disaster kit that includes water, food, medications, important documents, phone numbers, batteries, blankets, disposable camera, first aid kit, cash and pet supplies (if needed). Use this kit in the event that you cannot live in your home after a storm or you need to evacuate.
If you are a business owner, create a tornado emergency plan and make sure your employees know what to do in the event of a storm. Designate an area of your business as a “safe” area for employees to wait-out a storm and include a battery-operated radio, flashlight, whistles, safety goggles, first aid kit, emergency contact numbers, important documents and the company emergency procedures manual at this location.
Create a plan to recover. Worry about your possessions well before a storm hits or after, but do not risk your life to protect your belongings during a tornado warning. Keep photo negatives and copies of important documents in a safe location away from your home or business, like a bank’s safety deposit box. If you have not done this and a storm hits, remember that you can restore wet documents and damaged photographs with the help of a disaster recovery company.
In response to the recent tornadoes and floods, the U.S. Small Business Administration (SBA) is offering U.S. Department of Treasury disaster loans to small business owners affected by the natural disasters. Financial assistance is available to those who are located in an area President Obama has issued a natural disaster declaration.
SBA loans differ from the financial assistance FEMA offers. While FEMA offers financial assistance to residents, which they do not have to repay, the SBA only offers loans that borrowers must repay. These loans, however, are offered with low interest rates. Renters, homeowners and non-profit organizations can also apply for loans through the SBA. Homeowners can borrow up to $200,000, while business owners can borrow a maximum of $2,000,000.
The purpose of the SBA disaster loans is to help ensure businesscontinuity by assisting business owners with the costs associated with flood remediation, the process of restoring wet documents and building repairs. To receive a disaster loan, you must first file a claim with FEMA, which you can do online at www.fema.gov or by calling 1-800-621-FEMA (3362). After filing a claim, FEMA will mail you a recovery package that contains an SBA application.
When you apply for an SBA loan, the lender does not consider your credit score. Instead, the lender bases its decision on your circumstances, need and ability to repay the loan amount requested. When filing a disaster claim, you will need you Social Security number, the address of the building in need of storm damage restoration, your current address, a current telephone number, insurance information, information regarding your income and a description of your losses.
Memphis police officers were in full force as they knocked on the doors of about 1,000 homes today to instruct Tennessee residents to evacuate. The reason: the Mississippi River and its tributaries are expected to inundate area homes and businesses with near-record flooding. The predicted floods are likely to affect the states of Missouri, Kentucky, Louisiana, Mississippi and Arkansas, where White River-area residents also received evacuation orders.
According to MSNBC, emergency workers in Tenn. handed out bilingual fliers to residents that say, “Evacuate!!! Your property is in danger right now.” While experts state that this round of flooding will not cause as much devastation as the flooding disasters of the 1930s, they are starting early on the evacuation procedures. MSNBC reports that the river will crest on Wednesday, May 11, 2011, but the flooding could last a couple of weeks. Residents wanting more information and those who are in need of transportation or shelter should call (901) 324-8799 or text (901)-290-7530. Officials expect that the recovery from floodingcould take several weeks for homes and businesses.
