Does FEMA Cover Businesses?

The Federal Emergency Management Agency (FEMA) provides aid to local businesses whose property and a hurricane has damaged earnings. FEMA does not provide grants to businesses affected by a disaster, but it does give other forms of help, including:

Insurance claim relief. In order to make repairs and reopen, business owners will rely on their insurance providers for a prompt and total payment. After a large-scale tragedy, insurers may strive to save as much money as possible by underpaying claims, as they face hundreds of claims. In addition, some plans may only cover property damage caused by a hurricane and exclude coverage for company income and other losses. In these instances, FEMA assists businesses that are underinsured or waiting for insurance claims.

• Physical disaster financing for businesses: The Small Business Administration (SBA) offers disaster-damaged non-profit organizations and enterprises of all sizes low-interest loans. These loans provide up to $2 million for repairing or replacing real estate, inventory, business equipment, and other assets for qualified enterprises. In addition, borrowers who make changes that lessen the likelihood of future disaster-related property loss are eligible for a loan increase that is usually up to 20% over the cost of property damage.
• Economic harm loan: After a hurricane, the SBA offers a specialized Economic Injury Disaster Loan (EIDL) to firms that are unable to pay normal operating expenditures and satisfy their financial obligations. Firms must have sustained significant economic damage and be located in a declared disaster area to be eligible. The EIDL is particularly beneficial for small businesses, agricultural cooperatives, and private non-profit groups that cannot access finance at all. A business could qualify for both an EIDL and a physical disaster loan from the SBA, although property damage is not required for EIDL eligibility. The amount issued in an EIDL will be based on the financial needs of each business and will give the money essential for small enterprises to exist until normal operations resume. The annual interest rate on EIDLs cannot exceed four percent, and the maximum loan period is thirty years. Additionally, the loan includes various repayment alternatives that are tailored to each business's ability to repay.
• Construction and vehicle collaborations: Property owners are urged to register at www.DisasterAid.gov in order to utilize the tools and resources provided by FEMA-approved partners, including towing firms, contractors, independent drivers, and haulers.