BRE - disaster Flashcards
Elements of a Business Continuity Plan
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When done properly, a business continuity plan can help a business address several of its core functions. The plan will help to:
Determine and document which staff, materials, procedures, and equipment are absolutely necessary to keep the business operating,
Identify and document suppliers, shippers, and resources,
Define and document crisis management procedures and individual responsibilities in advance,
Plan for the building, plant, or store being inaccessible,
Plan for payroll continuity,
Share contact information and business continuity plans with other businesses in the building or industrial complex,
Keep copies of important records such as site maps, building plans, insurance policies, employee contact and identification information, bank account records, supplier and shipping contact lists, and computer in multiple secure locations,
Include co-workers from all levels in planning and as active members of the emergency management team, and
Review your emergency plans semi-annually.
Elements of a Business Continuity Plan
BRE - Disaster - 161-162
When done properly, a business continuity plan can help a business address several of its core functions. The plan will help to:
Determine and document which staff, materials, procedures, and equipment are absolutely necessary to keep the business operating,
Identify and document suppliers, shippers, and resources,
Define and document crisis management procedures and individual responsibilities in advance,
Plan for the building, plant, or store being inaccessible,
Plan for payroll continuity,
Share contact information and business continuity plans with other businesses in the building or industrial complex,
Keep copies of important records such as site maps, building plans, insurance policies, employee contact and identification information, bank account records, supplier and shipping contact lists, and computer in multiple secure locations,
Include co-workers from all levels in planning and as active members of the emergency management team, and
Review your emergency plans semi-annually.
Establishing a Business Recovery Center
Within the first couple of weeks after a disaster a community should establish a business recovery center to meet pressing needs in the business community. A business recovery center (BRC) is a one-stop shop set up to provide local, state, and federal resources to businesses after a catastrophic event. The BRC can also carry out a number of communications and outreach strategies (see later section titled “Communication & Outreach”).
An EDO often takes responsibility for establishing the center and engages the participation of community stakeholders. Most disaster-impacted communities should have the BRC up and running within two weeks of the disaster. The steps for establishing a BRC are outlined below.
Step 1: Gather resources for financial and technical assistance.
Step 2: Select a physical location.
Step 3: Staff up.
Step 4: Set up a hotline for Business Recovery.
Step 5: Start marketing your BRC.
Step Six: Prepare the paperwork.
Step Seven: Train staff.
Step Eight: Plan for the long term.
Delivering Services through a Case Management Approach
Case managers are trained to assess damages, gather documentation, identify helpful federal, state, and local resources, and develop a disaster recovery plan with the business. The key services they should be equipped to provide are:
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Grant eligibility. Case managers assist with online applications, prepare documents, answer questions, and provide status reports on grants.
Resource matching. Case managers determine specific needs, match/introduce businesses to mentors, and follow up on mentor services.
Direct business counseling. Case managers develop marketing strategy and execution, analyze the customer base, provide business continuity planning, advise on financial reporting/interpretation, and assist with relocation if needed.
Advocacy. Case managers research, develop, and design grant programs, assist with SBA loan applications, advocate with the IRS and congressional offices for grant eligibility, assist with city codes and license applications, and represent businesses to government.
Other business decisions. Case managers assist with technology/IT and other issues like building leases, staffing/management, loans, etc.
Delivering Services through a Case Management Approach
Case managers are trained to assess damages, gather documentation, identify helpful federal, state, and local resources, and develop a disaster recovery plan with the business. The key services they should be equipped to provide are:
Grant eligibility. Case managers assist with online applications, prepare documents, answer questions, and provide status reports on grants.
Resource matching. Case managers determine specific needs, match/introduce businesses to mentors, and follow up on mentor services.
Direct business counseling. Case managers develop marketing strategy and execution, analyze the customer base, provide business continuity planning, advise on financial reporting/interpretation, and assist with relocation if needed.
Advocacy. Case managers research, develop, and design grant programs, assist with SBA loan applications, advocate with the IRS and congressional offices for grant eligibility, assist with city codes and license applications, and represent businesses to government.
Other business decisions. Case managers assist with technology/IT and other issues like building leases, staffing/management, loans, etc.
Providing Financial Services in Short- and Long-term
After a disaster, small businesses may face the need for working capital to meet payroll, replace damaged inventory and equipment, and fund other operational costs. These funds are crucial to provide within the first month in order to get the business back up and running. As long-term recovery sets in, a small or medium-sized business may have to adjust to a changed local or regional market, and thus may need to reorient its product or service, train its workforce with new skills, find new customers, and seek out new vendors. Thus, short- and long-term financing mechanisms need to adapt to the specific, timely needs of businesses.
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Short-Term/Gap Financing
Establishing a Bridge Loan Program
A bridge loan program provides working capital to businesses after a disaster but before the business is able to secure funds from other sources such as SBA disaster loans, like insurance claims, renewed profits, or other sources. A bridge loan is typically paid back soon after the businesses has received other sources of funding. For example, the Florida Small Business Emergency Bridge Loan Program is activated by the Governor of Florida only in case of a disaster. Loans are made interest-free, and range from $1,000 to $25,000, but they must be repaid within 12 months. The program was established in 1992 after Hurricane Andrew, and it has been activated 12 times since. As of 2016, the program has made over $63 million in total loans to 2670 small businesses.
Establishing a Business Grant Program
Long-Term Financing
Establishing a Revolving Loan Fund
STATE INCENTIVES
After a disaster, the most vital incentives are the ones that help businesses renovate and upgrade facilities and equipment, retool for new markets, train employees with needed skills, and conduct other recovery activities. Most of the time, existing incentives can serve these functions, but new incentives can also be created to serve long-term recovery efforts. The most relevant types of incentives for post-disaster BRE include:
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Property Improvement/Restoration Incentives: These can be used to defer property taxes on renovations and improvements to facilities.
Equipment/Machinery Incentives: This includes exemptions on property, sales, usage, franchise, or state income taxes on new building materials, machinery, and equipment.
Retention/Reinvestment Incentives: There are based on saving jobs and investments of a company that may be in danger of closing.
