Small business works to return after Harvey

Sept. 04--Hurricane Harvey brought destruction to Crossroads businesses, stealing all the inventory of many and leaving others with collapsed structures.

About 40 percent of small businesses never open their doors to customers again after a disaster, according to the Federal Emergency Management Agency.

Mary and Kevin Nevarez, owners of Evelyn's Seafood Market, are determined that won't happen to the iconic Port Lavaca business that has been open on the bayfront since 1942.

"As far as everything inside ... it's completely shattered," Mary Nevarez said Tuesday. "It was flooded to the top of the windows, which is about 10 feet of flood damage. . It looks like tornado debris. There's very little room to walk in. Everything is completely covered in glass, seafood and all of our product."

The couple applied for a Small Business Administration low-interest disaster loan because FEMA doesn't offer funds to businesses.

The Nevarezes lost about $500,000 of retail inventory. They estimate they'll have to spend at least $125,000 but most likely more to replace damaged equipment, including three showcases, a drink freezer, three deep freezers, five live bait tanks and three stainless steel tables.

FEMA works in partnership with the SBA, said William C. Lindsey, FEMA media relations specialist. When a business owner registers with FEMA online or through postal mail, they need to ensure they fill out the SBA part of the registration.

FEMA provides financial and lodging assistance for a business owner's personal disaster situation but not for their business.

"Primarily what SBA does is provide low-interest loans, and they help areas that have been declared disaster areas by presidential decree," Lindsey said. "They come in as one of FEMA's partners to render economic stability to the area."

FEMA and SBA officials are working to establish disaster recovery centers in the Crossroads so people searching for assistance can get advised face-to-face, said Garth MacDonald, SBA office of disaster assistance public information officer. A center is in Edna at the high school football stadium.

Applying for a disaster loan is free, and business owners aren't required to accept them, MacDonald said. Generally the loans have a five-month deferral period until owners have to make payments.

"We can help them begin the recovery process," he said. "If they later fully recover with insurance, after (insurance agencies) provide funds, insurance proceeds can be used to pay (their loans) before they make a payment."

Regarding insurance, the Nevarezes rent their business space from the city of Port Lavaca, and they will work with city officials to get the building repaired.

When Nevarez assessed the damage to her business early last week, the structure's concrete walls were full of seaweed and debris, the roof was leaking everywhere and the ceiling had collapsed. A large hole replaced the entrance to the bait side of the business.

Nevarez said she didn't have her inside equipment and merchandise insured, so the couple applied for an SBA loan.

When owners assess damage to their businesses, they need to document it all, whether that is through pictures or video, said Mark Hanna, Insurance Council of Texas public relations manager. Owners should also clean up or do temporary repairs to prevent any further damage and be at their business when the insurance adjuster comes to make sure all damage is documented.

When it comes to insurance coverage, business owners who own their space need traditional and flood insurance for the structure as well as both types for their business property inside the building, said Jim Gavin, Independent Insurance Agents of Texas property and casualty insurance specialist. Business owners who rent should ensure their landlords have the right coverage and get flood and traditional insurance for their business property.

"It's important people understand the cost of repairs may be surpassing how it was when you selected your insurance," Gavin said. "Immediately, building materials just became short in supply; labor just got short in supply."

If sustained business damage isn't fully covered or not covered at all, as well as applying for an SBA disaster loan, owners should look within their network for assistance. Many associations are creating relief programs specifically for Hurricane Harvey, said Aaron Cox, Texas Association of Business member services and chamber relations vice president.

The association has created a resource center for businesses to connect and tap into each others' resources, Cox said. The association's Chamber Task Force is working with chambers across the state to coordinate efforts in their affected communities by connecting businesses.

"It's a difficult time for us all. In times like these, it's incumbent upon us to pull together and work as a state," he said. "We are truly one community. We are Texans -- we will take care of one another, come through this and come through better than we were before."

The Victoria Chamber of Commerce has begun the Members Helping Members initiative, matching members who have needs for their businesses with those who have resources, said Randy Vivian, chamber president.

"Our goal as a chamber (is to) be able to provide resources for people to get together, figure out needs, match them locally and get them into business that much faster," he said.

Before owners open their businesses back up, they need to ensure it's safe to do so and they're ready, Vivian said. Most businesses should have a continuity plan and know what they need to do to get back into business.

"Be very methodical, follow that plan and make sure that they don't open before they can handle what's going to be thrown at them," he said.

Nevarez and her husband own three boats that catch shrimp for her business to sell, and they contract with other captains. The couple have two of their boats back in the bay after evacuating them to the Port of Victoria barge canal. They plan to start catching shrimp to sell at a discounted price early this week.

Despite all the work to reopen their business, the couple's No. 1 priority is helping the community. They fed more than 50 families Wednesday with food they were able to salvage from their business and continue to donate ice from their ice-making machines.

"There's still a strong need," Nevarez said. "Our community will work together and come through this stronger than we've ever been."

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