When Craig Fugate became administrator of the Federal Emergency Management Agency (FEMA) he quickly re-defined FEMA’s mission to “to support our citizens and first responders to ensure that as a nation we work together to build, sustain and improve our capability to prepare for, protect against, respond to, recover from, and mitigate all hazards."
The nation’s businesses are an essential part of that effort. Retailers are often involved in all phases of a disaster – mitigation, preparation, response and recovery. When businesses reopen after a disaster, people go back to work, people come back to the community and the economy begins to recover. In community after stricken community, the key to long-term recovery is the involvement and leadership of the private sector.
In turn, there is information that helps businesses prepare for disasters, protect themselves from loss, and recover after the disaster.
• FEMA has a library of business case studies that detail emergency planning, response and recovery in a disaster. The library is on-line at www.ready.gov.
• The National Flood Insurance Program offers low-cost insurance that allows businesses to protect both buildings and contents. Coverage up to $500,000 for a building and $500,000 for contents is available. Most insurance policies do not include coverage for floods, though floods are by far the most frequent disasters in the United States.
• The Small Business Administration provides low-interest loans in the wake of a presidentially declared disaster. Business owners can borrow up to $2 million to repair or replace disaster-damaged real estate, machinery and equipment, inventory and other business assets. SBA also provides small business owners access to Economic Injury Loans that provide money for ongoing businesses to recover from the adverse economic impact of a disaster.
One other federal program deserves mention. The FEMA Private Sector initiative was launched two years ago in recognition of the importance of the private sector as a partner in recovery and the value of a strong relationship between emergency management and businesses.
One example of how communication and coordination between FEMA and the private sector helped FEMA reach storm survivors and helped businesses operate without interruption: After Hurricane Ike hit Texas, a group of businesses in one hard-hit area invited FEMA to set up a temporary recovery center near the businesses. Disaster survivors were able to register for assistance and meet face-to-face with disaster specialists and there was minimal disruption to business operations, which benefitted the local economy.
FEMA’s Private Sector Division is building relationships with leading national business organizations, the Retail Industry Leaders Association among them. The goal is to improve communication and coordination between FEMA and the private sector during disaster planning, response and recovery efforts for less property loss, less business interruption and quicker community recovery.