Imagine the havoc a natural disaster such as a hurricane, blizzard or fire could wreak on a small business like yours. Many businesses would not be able to overcome the resulting sustained loss of income, putting them in a state of economic peril.

Fortunately, funding is available in the form of low-interest Small Business Administration (SBA) disaster loans for business owners who need to rebuild after disaster strikes.

If, in the unlikely event your business ever suffers losses related to a natural disaster, keep in mind the two types of recovery funding available.

Business Physical Disaster Loans

If a storm causes substantial damage to your company’s physical location, you can apply for up to $2 million in funding through the SBA to help restore operations. A Business Physical Disaster Loan can help restore damaged property, make improvements, and replace lost inventory. The interest rates for this type of funding can be as low as 4 percent.

Economic Injury Disaster Loans

Even if your business emerges physically unscathed, the impact of a natural disaster can be far reaching because it impacts customers who may have lost their disposable income to spend on your goods and services.

The loss of customer cash flow will ultimately impact the bottom line of your business. When this happens, you may qualify for an SBA-backed Economic Injury Disaster Loan. These loans are meant to help your company emerge from the (hopefully) short-term local economic downturn related to a natural disaster.

If your business is impacted by natural disasters, here are a few valuable reminders:

  • Assess the damage, keep good records, and document with pictures and videos that can be submitted to insurance companies.
  • Contact an insurance agent with any questions about what is covered and what is not.
  • File claims quickly in order to get the insurance money faster. Some policies require that claims be filed within a specific time frame in order to be compensated for losses.
  • After claims have been paid by the insurance company, determine whether the resolution is satisfactory. If not, look for a new insurer.

Whether you find your business in a cash crunch due to a natural disaster or another scenario, online lenders such as Biz2Credit are available to help quickly arrange funding and attractive rates and terms.