“Weathering the Storm: Hurricane Michael’s Impact on Northwest Florida’s Small Businesses.”
Exiting the recession from 1973 to 1975,
In 1976, the
Our Services
Florida SBDCs offer access to confidential, professional business consulting at no-cost. Our core consulting expertise focus in areas of assed business need that are most vital to accelerating the growth of small and medium sized businesses. The Florida SBDC Network has established a service strategy model that represent existing and targeted (grow needs) areas of competency for the network. Each area of competency is aligned to meet the primary needs of a particular market segment, however, business and service needs may overlap with one another.
. Start-up Assistance - Consulting directly attributed to assisting individuals in starting new businesses, including providing guidance on business formation, structure, registration, regulation, and business taxes.
. Business Plan and Strategic Plan Assistance - Consulting directly attributed to assisting existing or aspiring small businesses with strategic or business plan development and/or implementation, including, but not limited to, analyzing the business' mission, vision, strategies and goals, overall critique of the plan, and performance measurement, financials and projections, and plan execution. Assistance may also include the facilitation of strategic plan development for select target market client businesses, or business continuation strategy development including selling, merging or closing a business.
. Capital Access Assistance - Consulting directly attributed to assisting existing or aspiring businesses access capital, including providing loan package services, such as assessing capital need, identifying and assessing potential debt and/or equity funders and/or other financing alternatives; assisting in the preparation of applications, projections, pro formas or other support documentation for the request for a loan or other request for financing/investment; preparing a client for lender/investor presentations, or facilitating conferences with or responding to lender/investor inquiries on behalf of a client business.
. Market/Sales Growth Assistance - Consulting directly attributed to assisting existing businesses with marketing plan and strategy development to expand existing or access new revenue markets. Services should include conducting strategic research to identify new markets, preparing and analyzing sales and financial projections, and ability to professionally critique a business marketing plan or campaign for expanding into a new market.
. Government Contracting Assistance - Consulting directly attributed to assisting existing businesses interested in obtaining contracts with the
. Export Assistance - Consulting directly attributed to assisting existing manufacturers, agricultural producers and other qualified small businesses with strategic business assessments and developing and implementing international export marketing plans for new-to-export, new-to-market segment. Included in this area is educational training necessary to facilitate the businesses international mission, vision, strategies and goals, through the nationally NASBITE-certified, Florida Export Certification Program.
. Cash Flow Management Assistance - Consulting directly attributed to assisting businesses with financial literacy in business cash flow management, including cost control management techniques, completing feasibility studies, or completing financial analysis not related to the preparation of a loan package or request for financing. Assistance may also include conducting financial analysis health checks and building financial management strategies and solutions using financial analysis/strategy software or other appropriate application.
. Business Continuation and Disaster Recovery Assistance - Consulting directly attributed to assisting businesses with disaster preparedness, mitigation and continuation planning, and disaster recovery assistance, including but not limited assistance with federal and state business disaster loan application assistance.
Our Approach
At the Florida SBDC, we believe we create unimaginable possibilities in prosperity for small businesses located in
We achieve mission success by providing our state's most important economic contributors -small businesses- with no-cost confidential, professional business consulting deliverd by certified professional business consultants and specialist focused on helping our small businesses:
. access elusive capital for business investment and expansion, including federal and state business disaster loan assistance for recovery and rebuilding, if necessary;
. develop and implement short-term and long-term strategies for expansion of existing or accessing new markets that contribute to revenue and employment (job) growth, and
. execute strategies, or management and business practices or process to become more competitive and efficient, thus more profitable contributing to the tax base and overall growth of the state economy).
Our Results
The primary purpose of the Florida SBDC is to provide access to no-cost, certified professional business consultants and specialists who possess the experience, expertise, and access to resources existing and aspiring small businesses need to make better business decisions; identify and access growth opportunities, and ultimately achieve sustained success that results in the creation of lasting positive economic impact for
Appropriately,
In 2018, the Florida SBDC delivered more than 112,000 hours of no-cost professional business consulting to more than 11,500 existing and aspiring small businesses businesses located in
.
.
.
. 38,403 Jobs Were Impacted (direct, indirect and induced)
.
Resulting in -
.
.
Effects of Disasters on Small Businesses
As of
According to the
Primary Cause of Damage: Loss of Revenue, Loss of Power
Seeking to fill gaps in the existing literature about the influence of capital on small business' recovery following a disaster, the
Quick Capital Is Need
Regarding the capital needs of affected small businesses, the study found that affected firms experienced higher credit risk, lower profitability, and a greater likelihood of financial challenges. Additionally, 66 percent of small businesses that applied for financing experienced a gap. Interestingly, the study found that more affected small businesses sought credit financing than disaster assistance, such as SBA loans. When asked if they would apply for assistance, nearly half (48 percent) indicated they would not apply, suggesting that small businesses base their borrowing on the speed of the decision and chance of being funded. The study also found that affected businesses were more likely to submit three or more applications for financing.
These findings hold important implications. According to the
Experience Matters
Sydnor et. al (2017) found in a study of small businesses in southern
Findings from the study also suggest that a business' overall health and age plays a key role in recovery. The study findings confirm prior research that older businesses are more likely to be operational following a storm, suggesting that older businesses are more resilient when affected by a disaster. Corey and Deitch (2011) found that small businesses in the retail and wholesale industries are most vulnerable to disasters, yet are among the first to reopen and adapt to new market conditions. They also found that construction firms typically experience an economic boost following a disaster. n5
Commercial Bankruptcy Filings
In 2015, the number of commercial bankruptcy filings hit record lows; however, they have begun to creep up over the past few years. The rise of filings could be an indicator of the impact recent disaster events have contributed to small businesses in
Hurricane Michael
The Impact
On
The Panama City Metropolitan Statistical Area (MSA) took the brunt of the damage with close to 50,000 structures damaged or destroyed. Within the MSA, the
According to the
According to the
In the days and weeks following the storm, Florida SBDC and DEO leadership conducted some joint onsite visits with some of the areas largest employers. We also engaged countless small employers at numerous hosted town halls and forums. The loss of trained workforce was the principal mid to long-term concern in their business recovery efforts. Some of the larger employers indicated strategies to "over hire" by 30 to 40 percent in anticipation that they expected that many or more would be misplaced, i.e. unable or could not afford to repair a damaged home or there would be a lack of affordable housing to rent.
In
For areas outside of the Panama City MSA, the challenge to recover and rebuild is even greater. While the 12 the presidentially disaster declared counties comprise over 15 percent of the total area of
Disaster Response and Recovery - Our Role
One of the areas we take great pride is the important role the Florida SBDC contributes to disaster response and recovery.
In
Establishing and Staffing Business Recovery Centers:
As a
With the leadership of DEO, and cooperation and collaboration of the SBA, we were able to establish 10 BRCs within 10 days after Hurricane Michael - well before
BRCs with separate locations (or at least dedicated locations) from
Deploying Mobile Assistance Centers (MACs):
The Florida SBDC maintains two
During Hurricane Michael, both our Florida SBDC MACs were deployed full-time and running at capacity through the end of the year, and both were stationed in multiple communities throughout the panhandle as designated "Mobile BRC" locations, including
Business Disaster Loan Assistance:
The Florida SBDC assists the
As part of the loan process, a Florida SBDC disaster loan specialist provides personalized, hands on assistance throughout, including:
. meet and answer questions and expectations about the loan program;
. pre-screen the applicant for eligibility;
. provide assistance in completing the application and packaging of the loan;
. organize and facilitate the bridge loan committee, usually comprised of local bankers, who deliberate and decide if the loan will be made;
. communicate the loan decision to the applicant, and,
. if approved, facilitate the closing and distribution of the loan.
Generally, the small business owner/applicant is assigned and communicating with one, no more than two Florida SBDC disaster loan specialists throughout the entire process.
With help from our partners, the Florida SBDC Network assisted and closed 588 emergency bridge loans following Hurricane Michael; helping small businesses and farmers secure more than
Road to Recovery Remains Long
Veterans of natural disasters, Floridians are no strangers to the devastations created by Mother Nature. Nonetheless, since 2016, Floridians have endured four hurricanes-- Hermine, Matthew, Irma, and Michael--and an elevated presence of red tide and algae blooms that created devastating losses for our state. The results of these events were further compounded by complacency caused by a decade without a hurricane. As disaster-affected regions of the state struggle with rebuilding, small businesses play a vital role in recovery efforts.
For small businesses in
In
Caribbean Coffee,
After Hurricane Michael swept ashore,
Prior to his stores' official reopening long after the storm, David opened his front door, threw out the welcome mat. Without power and running water, he began serving complimentary coffee using bottled water and an electric kettle connected to a battery one cup at a time to weary residents, first responders and curious strangers. That was the first time I met David.
In an interview, he told News 13, "The plan was to open up as quickly as possible. Anything that leads to normalcy puts a smile back on somebody's face and that's what I was trying to give them."
Small businesses are imperative to the current and future economic success in
Regrettably, but no regrets, disaster recovery has become a full-time job. Since 2016, the Florida SBDC has successfully responded to federal disaster declarations and emergency executive orders for four hurricanes - Hermine, Matthew, Irma and Michael - and redtide and algae blooms without any special appropriation, disaster supplement or reimbursement. During that time the Florida SBDC has expended millions of its general operating budget in support of its commitment to serve the needs of our small business in the greatest time of need. While this work is critical, and equally demanding as it is rewarding, it takes away from the core work that the Florida SBDC Network expected and accountable by our funding agency partners, including the SBA.
In close,
Nearly a year later, communities like
n1
n2 Make Your Business Resilient Infographic [
n3 Federal Reserve Banks (2017) Small business credit survey: report on disaster-affected firms. Retrieved from: https://www.newyorkfed.org/smallbusiness/small-business-credit-survey-2017
n4 Sydnor, S., Niehm, L., Lee, Y., Marshall, M., & Schrank, H. (2017). Analysis of post-disaster damage and disruptive impacts on the operating status of small businesses after Hurricane Katrina. Natural Hazards, (3), 1637. doi:10.1007/s11069-016-2652-y
n5 "Factors Affecting Business Recovery Immediately after Hurricane Katrina," by
n6 NOAA National
n7 Hurricane Michael. (2019) National Hurricane Center Tropical Cyclone Report. Retrieved from https://www.nhc.noaa.gov/data/tcr/AL142018_Michael.pdf
n8
Read this original document at: https://www.sbc.senate.gov/public/?a=Files.Serve&File_id=7834E9AB-920A-411F-9BA1-5E804B5FDDEE
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