How to Recover Your Business After a Disaster
When disaster strikes your business, you may not know where to turn. If you’re still reeling from a major catastrophe and considering closing your business, find out how a disaster loan can bolster your disaster emergency plan and give you the finances you need to restore your business and thrive in the face of tragedy.
Disasters can take many forms. From minor water damage to major flooding, hail damage or wind damage, you may not know what damages to expect from a disaster. In the event of an emergency, the SBA disaster loan program can give you the tools you need to overcome any obstacle.
Before you access any disaster funding from the SBA, contact your current insurance agent to determine your coverage. You may be able to receive all or most of the financial aid you need from your insurance policy. Your insurance agent also needs to be notified immediately to determine the extent of the damage and inform you what can and can’t be covered.
After you discuss the disaster with your insurance agent, it’s time to search through your records. It’s a good idea to keep a safe copy of your financial records off-site. This allows you to easily access your bank information, tax returns, and overall financial statements. Otherwise, attempt to recover as much of this as you can. Of course, your business location may be too dangerous to enter. There are other ways to recover this information, so don’t put yourself at risk.
Once you’ve gained access to your statements, you can apply for a loan to recover from the disaster. These loans typically have competitive rates and are more lenient than traditional business or small business loans. You’ll receive funding to clean your premises, repair any damage from natural causes and replace your inventory and equipment.
Recover quickly to keep your business moving forward. Waiting to restore your location not only translates into lost productivity but also could cause further damage as water starts to mold your property or damaged structures allow further leaks to occur.
When searching for recovery services and a quality disaster loan, it’s important to be on guard in the event of scams. Many unscrupulous business owners seek to take advantage of a disaster and provide fraudulent information regarding loans. Never give out personal information until you’ve determined that the loan provider you’re contacting is a legitimate financial institution.