SB Informer
Tuesday, May 23, 2006; 01:52 AM
WASHINGTON - Last year
hundreds of thousands of homes and businesses were destroyed, and
billions of dollars were lost in the destruction caused by Hurricanes
Katrina, Rita and Wilma. With the Atlantic hurricane season approaching
June 1, the U.S. Small Business Administration is urging homeowners,
renters and businesses across the country to take steps to protect
their lives and property now. "Last year's Gulf Coast hurricanes and this month's flooding in New
England are reminders that no matter where you live, there's always the
potential for a major disaster," said SBA Administrator Hector V.
Barreto. "No one is insulated from the threat of losses caused by wind
storms, floods and wildfires, power outages and other natural and
man-made disasters. These catastrophes should remind us of the need to
be prepared, to have a plan not just to survive disaster, but to
recover quickly." Tips on disaster preparedness for business will be shared during a
live Web chat on May 25 from 1 p.m. to 2 p.m., EDT. Experts on the chat
include Lori Adamo, President of Code Red Business Continuity Services,
and Michael Lampton, representing SBA's Office of Disaster Assistance.
To join the chat, or to send questions before May 25th, visit the site
at http://app1.sba.gov/liveMeeting/liveadamo/intro.cfm. Disaster preparedness begins with having adequate insurance coverage
-- at least enough to rebuild your home and replace personal
belongings. Homeowners and business owners should review their policies
to see what isn't covered. Businesses should consider "business
interruption insurance," which helps to cover operating costs during
the post-disaster shutdown period. Flood insurance is essential; most
of the 143,000 disaster loans made by the SBA after the Gulf Coast
hurricanes were for flood damage. To find out more about the National
Flood Insurance Program, visit the Web site at http://www.floodsmart.gov/. Making sure your home or business property is less vulnerable by
identifying possible hazards, developing a plan which includes
establishing escape routes, keeping emergency phone numbers handy and
saving copies of important business and personal records off-site are
critical disaster preparedness strategies suggested by the SBA. A University of Texas study reports that 43 percent of companies
experiencing a catastrophic data loss never recover, and half of them
go out of business within two years. So businesses, and for that matter
anyone who owns a home computer, should back-up financial records and
other vital information stored on hard drives. SCORE, a non-profit
association that serves as counselors to small businesses, suggests
that those files should be stored in a portable lockbox offsite, at
least 500 miles away. "The good news is that there are many resources
at the public's disposal to help them prepare their families and their
businesses before disaster strikes," said Barreto. "As recent history
shows, it's prudent to be prepared." More preparedness tips for businesses, homeowners and renters are available on the SBA's Web site at http://www.sba.gov/disaster_recov/prepared/getready.html.
The Institute for Business and Home Safety (http://www.ibhs.org/ ) also
has information on protecting your home or business. The federal
government's preparedness Web site http://www.ready.gov/ is another
helpful resource. Through a partnership with the Hartford, the SBA also offers on
online Webinar on preparing your business for disaster. Access the site
by clicking http://www.sba.gov/training/courses.html and selecting "Surviving Beyond Disaster." To date, the SBA has approved more than 146,500 disaster loans for
$9.54 billion to survivors of the Gulf Coast hurricanes. The SBA makes
low-interest loans to homeowners, renters and non-farm businesses of
all sizes following a disaster declaration by the President. Homeowners
may borrow up to $200,000 to repair or replace damaged real estate.
Individuals may borrow up to $40,000 to cover losses to personal
property. Non-farm businesses and non-profit organizations of any size may
apply for up to $1.5 million to repair or replace disaster damaged
business assets and real property. Small businesses that suffered
economic losses as a direct result of the declared disaster may apply
for a working capital loan of up to $1.5 million, even if the property
was not physically damaged. To learn more about the SBA's disaster assistance program, visit the Web site at http://www.sba.gov/disaster.
http://app1.sba.gov/liveMeeting/liveadamo/intro.cfm
http://www.floodsmart.gov/
http://www.ibhs.org/
http://www.ready.gov/
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