Massachusetts Blizzard Small Business Loan

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Blizzard in Massachusetts

Massachusetts has been hit by more than one record-setting snow event in its long history. Between the mountainous terrain and fluctuating elevation levels, it’s no surprise that the region sometimes sees more than four feet of snow. As we prepare for another winter, it’s helpful to take a look at some historic blizzard And how they affected the lives of homeowners, small business owners and the people who were cleaning up the pieces in Massachusetts.

Blizzard of ’78

It’s hard to bring up blizzards in Massachusetts without thinking of the devastating New England blizzard of 1978. The storm hit the Bay Area on February 6 and lasted two days, shattering previous records, with Boston being hit by more than 27 inches of snow and Rockport clearing up an incredible 32 inches. Sadly, the blizzard of ’78 killed 73 people and sent over 4,500 residents to medical attention.

1992 nor easter

On December 13, 1992, Massachusetts was hit by another newsworthy winter phenomenon. The nor’easter brought snow, sleet, rain, and high wind gusts to the state, eventually accumulating more than four feet of snow in a single day. The mix of wind and snow created drifts of more than 10 feet of snow in the Berkshires and record-high flooding in Boston. Centers for Disease Control (CDC).

Winter Storm Nemo of 2013

In February 2013, a powerful blizzard, later named winter storm nemo, flows through the northeastern parts of the United States into Canada. Due to the size of this storm, five states including Connecticut, New Hampshire, Massachusetts, New York and Maine recorded more than 30 inches of snowfall. In addition to heavy snowfall, the region experienced hurricane-force winds that were recorded as high as 102 mph. Nemo was the cause of 18 deaths and 700,000 homes and businesses left without power.

winter storm juno

In late January of 2015, Massachusetts saw a blizzard, named Juno after the Roman goddess of childbirth and marriage, bring the most snow in a single day in the state’s history. Worcester, MA nearly made history with a 32-inch snow day, the most snow ever recorded in a single day. Although Juneau was isolated, several more snow storms struck the region during that February, forcing residents, entrepreneurs and emergency workers to revise their recovery plans. The Milton area of ​​Massachusetts reported a total of 150.8 inches of snow during the 2014 to 2015 winter season.

winter storm kenan

Kenan is the heavy blizzard that fell 30.9 inch Snow fell in areas near Boston and Stoughton on January 29, 2022. The storm affected parts of Massachusetts and New England over a 24-hour period, dropping more than 2 feet of snow and bringing wind gusts in excess of 80 mph to many areas. The number of reported power outages reached 100,000, with the South Shore and Cape Cod suffering the most.

Help for Blizzard Affected Small Businesses

After the most recent weather-related disaster, Massachusetts learned that many non-profit, government and private organizations were involved in helping communities recover from storm damage. Local news outlets and government agencies worked hard to get the word out about financial assistance and business resources for local businesses affected by the storm. Information was shared through news conferences, government agency websites, social media platforms, and email updates.

Shortly after Winter Storm Cannon hit Massachusetts earlier this year, several organizations stepped in to provide community support and business support. Some recovery efforts are still underway in Massachusetts as homeowners and small business owners prepare for the upcoming 22-23 winter weather. Federal Emergency Management Agency (FEMA) worked with the Massachusetts Emergency Management Agency to assess storm damage, estimate repair costs, and obtain a federal disaster declaration.

Massachusetts Growth Capital Corporation (MGCC)

Massachusetts Growth Capital Corporation The Massachusetts Community Development Finance Corporation and the Economic Stabilization Trust are a public agency formed in 2010 by the coming together of the organizations. The organization works with local banks and financial institutions to provide economic development to local areas through funding programs, financial aid, technical assistance grant programs, and disaster assistance. MGCC provided millions of dollars to Massachusetts business owners who used their Small Business Resource Guide Throughout the coronavirus pandemic and during the 2021-2022 snow season.

US Chamber of Commerce Foundation

as an ally of US Chamber of CommerceThe Community Resilience and Disaster Response Program of the Center for Corporate Citizenship helps individuals and businesses globally. The main objective of the organization is to help government agencies work with local communities to better communicate during times of disaster, increasing the efficiency of disaster preparedness and recovery. Massachusetts Chamber of Commerce Stays connected to this network to help businesses recover from Winter Storm Cannon and prepare for upcoming events.

Small Business Development Center

Massachusetts Small Business Development Center (MSBDC) helps small business owners operating in the state with free or low-cost business assistance, including start-up assistance, growth strategy consulting, training, minimization and business plan development. As businesses recover from Winter Storm Kenan and other disaster-related losses, the MSBDC steps in to provide resources such as cash flow analysis, marketing tips and access to non-traditional financing.

Small Business Loans for Massachusetts Business Owners

Several small business loan programs exist to help entrepreneurs defray the costs of disaster recovery. If your business was affected by a blizzard or other natural disaster, consider the following disaster recovery loan,

sba loan

US Small Business Administration (SBA) is a government agency that helps small business owners, including providing financial assistance for disaster relief.

Economic Injury Disaster Loan (EIDL) , EIDL loan There are funding programs for small businesses, agricultural cooperatives, and most private for-profit or non-profit organizations that have suffered economic losses as a result of a declared disaster. EIDL loan amounts of up to $2 million are available to eligible businesses and are approved based on the amount of economic damage the business has recorded.

physical calamity loan – this type disaster loan Covers the cost of repair and replacement of property damaged or underinsured during a disaster. Proceeds from physical disaster loans can be used to replace or repair commercial real estate, equipment and inventory. These loans are issued for up to $2 million with repayment terms of up to 30 years. Unlike other types of business financing, the SBA can increase the physical disaster loan amount by up to 20% to protect borrowers’ assets from future damage.

disaster loan eligibility

SBA disaster loans are beneficial to businesses because they offer lower interest rates, shorter down payments and longer repayment terms. Disaster loans are given to businesses that operate within a declared disaster area. Check with the SBA to confirm if your area has been declared a disaster area Current declared disaster page, If your area is not officially designated a disaster area, there are other funding options you can consider, such as:

apply for a disaster loan

Eligible small businesses can apply for a disaster loan on the SBA portal or the SBA Disaster Center, although many people find it helpful to consult with a small business lending specialist First to explore SBA and business lender loan options. Before applying for any type of disaster assistance, business owners must first register with FEMA and obtain a registration number. Documents that may be requested to complete the loan application process include:

  • Borrower’s contact information and proof of identity, such as a passport or social security card
  • fema registration number
  • real estate deed or lease information
  • insurance policy information
  • business bank account details
  • employer Identification Number (EIN), available from the IRS

Preventing Property Damage Before Natural Disasters

In times of uncertainty, it is reassuring to know that there are government agencies, lenders and non-profits that assist small business communities. However, it is important for entrepreneurs to actively protect their businesses From future blizzards, floods and other damages.

Assess risks and document a plan

Whether your business operates from a physical location, remotely, or is mobile, every small business owner should conduct a risk assessment. Brainstorm with key staff members to list ways weather, terrorism, fire, theft, and more could affect your business. Consider the ways force majeure events could affect your revenue, available working capital and bottom line. While you’re working with your team, discuss how your business can recover from the resulting loss. Take some time to document the process. Consider answering the following questions in your continuity plan,

  • How will we inform employees, vendors and customers about the disaster?
  • Who is responsible for handling insurance claims?
  • Which vendors will we go to for property damage cleanup and repair?
  • How do we function if we have no power or damage to real estate?

connect resources

When Winter Storm Cannon ravaged Massachusetts, much of the help was provided by local organizations and government programs with financial, professional, and technical resources. It is important to know who to contact in case of crisis. Make a list of disaster resources in your area and consider becoming familiar with what each one does and how to contact them. Some great places to start in your area include:

be financially prepared

The impact of a blizzard, fire, flood, or other disaster can take a business owner by surprise, but it’s important to know where you stand financially. The financial impact of a blizzard on your small business may include:

  • Refurbishment to repair property damage to buildings, vehicles, equipment
  • lost revenue to business interruptions
  • Employee Benefits Compensation During Repairs
  • storm cleaning – includes debris removal, snow removal, snow treatment

While business insurance is intended to help small businesses recover from unexpected losses, filing insurance claims takes time. It’s a good idea to prepare a vulnerability analysis so that you have an idea of ​​how long you can financially survive without a regular income. If possible, set aside three to six months of operating expenses. This will allow you to pay everyday expenses such as utility bills, insurance premiums, payroll, mortgage payments, taxes and subscriptions. Consider opening a savings account to build or withdraw your emergency fund reserve. business line of credit, which is a type of revolving credit. A line of credit works when borrowers are approved for the maximum credit line and can then draw capital from the line whenever they need money fast. Having a line of credit is a great way to prepare for the unexpected.

final thoughts

Massachusetts has seen several devastating snowstorms over the past decade. Extreme weather can damage land, buildings, equipment and disrupt business. During the disaster recovery period, it can be helpful to reach out to local resources such as MGCC or the Small Business Development Corporation and learn about available assistance programs. Disaster loans backed by the SBA are a common type of financial assistance used to recover from blizzard damage. Consider working with a qualified lender on Biz2Credit to learn about disaster loans or proactive funding plans, such as a business line of credit. You may be surprised at the number of options you have, such as Vista Pharmaceuticals when did you learn Biz2Credit Helped him get a bigger SBA loan with a lower interest rate.

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