Businesses affected by recent flooding may get loans, not handout
Residents of the Tampa Bay area, particularly in parts of Pasco County, experienced the unfortunate impact of flooding last week. Days of rain and a saturated earth around the Anclote River created circumstances that a local newspaper described as a “rinse-and repeat routine.” Parts of neighborhoods have been slogging through water for more than two weeks.
Businesses have suffered too. And, the Florida Department of Economic Opportunity is asking businesses how the flood affected them by inviting business owners in five affected counties to take an online survey to help the department decide which get immediate aid.
Take a look at the bottom of the survey form. Note the aid comes as a loan. It is not an insurance check, nor a grant, nor a government handout.
If a flood-damaged business had purchased a commercial flood insurance policy, it would be getting a claim check, not looking for a loan. The claims money would help rebuild the structure and replace damaged inventory. The National Flood Insurance Program (NFIP) estimates that at least 25 percent of businesses that close after a natural disaster, such as a flood, never reopen.
If a flood disaster befell your business, which is the better option – a claim check or a loan? Damage from flooding is not covered by standard commercial insurance policies. Flood insurance is available from the NFIP and from some private insurers.
Do the math. Smart money is spent on taking steps to disaster-proof your business.