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November 11, 2019 • Issue 19:11:01

Multiple ways to help merchants

through natural disasters

and Southwest, and wildfires in the West among them –
causing an estimated $306 billion in damages, according
to the National Oceanic and Atmospheric Administration.
Three hurricanes alone – Harvey, Irma and Maria – cost
local economies on the U.S. mainland $265 billion, NOAA
said. Adding damages from other mainland disasters and
those sustained in Puerto Rico and the U.S. Virgin Islands
brought the total to more than $500 billion.

A Federal Reserve report paints a stark picture of efforts
by small businesses to rebound following these disasters,
which were concentrated in nine states: North Carolina,
South Carolina, Georgia, Florida, Michigan, Mississippi,
Arkansas, Texas and California. The report revealed that
small businesses in these states were hardest hit: 40 percent
of small firms in the states studied reported losses due to
natural disasters. Disasters struck small enterprises across
the age and income spectrum, but Hispanic-owned busi-
nesses and those in the retail, leisure and hospitality sec-
By Patti Murphy tors were hardest hit financially, the Fed reported.

hen a disaster hits – like a hurricane, flood
or wildfire – everyone in the affected area Among affected businesses, 45 percent suffered asset losses
suffers. But some suffer more than others. up to $25,000, and 19 percent lost more than $25,000, accord-
W Business owners, in addition to dealing with ing to the Fed. But foregone revenues, not assets, were the
the consequences for their homes and families, face the largest source of losses for small business. Sixty-one per-
unenviable task of getting their shops back on line and cent had revenue losses of up to $25,000 and 35 percent lost
recouping lost revenues. more than $25,000.

This can be daunting. A 2018 survey by Visa revealed the
cost of rebuilding a small business following a natural di-
saster can exceed $859,000. The Federal Emergency Man- Contributed articles inside by:
agement Administration estimates that 40 percent of small
businesses never reopen after a disaster, and 25 percent of
those that do reopen fail within a year, because revenue Brandes Elitch ........................................................................................20
losses are too substantial to overcome. Dee and Emily Karawadra .................................................................32
Adam Atlas ..............................................................................................36
In 2017 the United States experienced 16 natural disasters Jeff Fortney .............................................................................................38
– hurricanes in the East, massive flooding in the Midwest
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