This blog previously discussed how businesses of various sizes need to keep themselves prepared for the impact of severe weather. Hurricane Sandy proved to many owners that cleanup costs can be immense, and applying for a loan through the Small Business Administration (SBA) was a good option for many companies.
When organizations are creating a business plan, ensuring that all aspects are accounted for and paperwork has been properly filed, it's important to not forget about insurance. Working with commercial insurance specialists can assist owners in finding the most comprehensive policy that suits their company's daily operations.
A recent Bloomberg BusinessWeek article discussed the status of SBA loans, and how East Coast companies are still in the process of figuring out their recovery process, months after Sandy made landfall.
Reports have Sandy as being the third-largest disaster in the United States, behind Hurricane Katrina in 2005 and the 1994 Northridge (California) earthquake. So far, the SBA has approved more than $1.1 billion in disaster loans for East Coast business owners, homeowners and renters.
"As of Monday, the majority of the loans approved have gone to 15,706 homeowners and renters in New Jersey, New York, and Connecticut," the article reported, citing information from SBA. "A total of 809 business loans have been approved in the same states, worth $84.9 million."
Additionally, business loan approval rates were 8.1 percent in New York, 8.5 percent in Connecticut and 7.9 percent in New Jersey.
Different locations in the U.S. are prone to various types of storms or natural disasters. However, one thing that is common between all businesses is that they can benefit from commercial property insurance. Federal loans, grants and other funding are not a guarantee, and if company owners are unable to obtain any, and they don't have a protecting insurance policy, it could be near impossible for a full recovery.