b'BUSINESS MANAGEMENTContinued from page 20there are minimum regulations that govern howThe SBAs main form of support for businesses is certain businesses manage risk, but as a businessthe Disaster Loan Program. The organization has owner you will need to determine whether thetwo types of disaster loans designed specifically minimums are enough. As ready.gov states, Manyfor small business owners:risks cannot be insured, so a preparedness programThe SBA Business Physical Disaster Loan may be the only means of managing those risks.provides loans of up to $2 million to help qualified Managementcommitmenttoapreparednessbusinesses and nonprofit organizations within a program, as well as a written preparedness policydisaster area repair and replace real property, and oversight committee, may be critical to ensuringmachinery, equipment, fixtures, and leasehold your businesss longevity. improvements not fully covered by insurance. Step 2: Planning.This step should include theMitigation assistance that can help businesses creation of a risk assessment that identifies allmake improvements to help protect against potential risks and hazards for your business, withfuture disasters may also be available.ideas for mitigating their impact. It should highlightThe Economic Injury Disaster Loan offers up threats and hazards that are considered probable,to $2 million in loans to help small businesses, as well as any that could cause injury, propertysmall agricultural cooperatives, and certain damage, business disruption, or environmentalnonprofit organizations that suffer substantial impact. Another critical document is the businesseconomic distress because of a disaster. The impact analysis, which details sensitive or criticalSBA must determine that the business is unable processes as well as the financial and operationalto obtain credit elsewhere. Loan proceeds can be impacts that would occur due to disruption of thoseused to meet financial obligations and working processes. capital needs that could have been met if a Step 3: Implementation. In this step, committeedisaster had not occurred.members identify and assess resources, draft writtenThe American Red Cross also provides resources plans, develop a system to manage incidents, andfor small businesses that are preparing for the train employees as needed. Several key documentspossibility of disasters and emergencies. American contribute to successful program implementation,Red Cross Ready Rating is a self-guided online includingcrisiscommunications,emergencyprogram designed to help member businesses, response, and business continuity plans. organizations, and schools assess their level of Step 4: Testing & Exercises. To evaluate theemergency preparedness. The core of the program programs effectiveness, including the success ofis a 123-point assessment that is used to gauge employee training, management should run testsones level of preparedness. Members also have and drills to see what works and note opportunitiesaccess to a variety of online tools and resources to for improvement. help create and refine a disaster preparedness plan. Step 5: Program Improvement. During testing or anExamples include a hazard vulnerability assessment actual incident, weaknesses in the program are likelyworksheet, an emergency response notification to be revealed. They should be documented, alongprocedures document, and a damage assessment with lessons learned and strategies for addressingform. Visit readyrating.org to view the program.such problems in the future. Finally, the Insurance Institute for Business & Other disaster preparedness resources Home Safety (disastersafety.org) offers a variety of resources, including research reports and an The Small Business Administration (sba.gov) offersonline tool that allows you to enter your Zip code a number of resources designed to help smalland receive information about specific risks in your businesses shore up their emergency preparedness,area.including links to templates and worksheets that willDisasters are unpredictable, and they can put you, help you gather the data you need to put togetheryour employees, and your business in jeopardy. the various written documents. The SBAs DisasterBut many of their worst effects can be prevented, Preparedness and Recovery Plan outlines theor at least mitigated, through a structured disaster various ways in which the SBA can assist businessesmanagement plan.recovering from disasters.Continued on page 22www.mrca.orgMidwest Roofer 21'