Small Business Disaster Support — Keith A. Swenson, Washington State Department of Commerce
Summary
Slides from Keith A. Swenson of the Office of Economic Development & Competitiveness, Washington State Department of Commerce, on small business disaster support. The slides say that, according to the Federal Emergency Management Agency, 40% of small and mid-sized businesses never reopen after a natural disaster. They describe the Small Business Disaster Grant Program, which provided grants to small businesses that sustained physical damage or economic loss, with $10 million for NW Washington floods and $10 million for statewide relief. Eligible uses listed include payroll, utilities, rent, and marketing and advertising. The slides also mention an EDA grant with $800,000 dedicated to developing a mobile app version of a disaster planner.
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“Small Business Disaster Support — Keith A. Swenson, Washington State Department of Commerce.”
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Keith A. Swenson
ASSISTANT DIRECTOR
OFFICE OF ECONOMIC DEVELOPMENT & COMPETITIVENESS
12/24
We strengthen communities
WASHINGTON STATE DEPARTMENT OF COMMERCE 2
A disaster isn’t a matter of if, but when …
Bellingham Flooding Sumner Arson
Bolt Creek Fire
Maltby Fire Port Orchard King Tides
WASHINGTON STATE DEPARTMENT OF COMMERCE 3
The cost of disaster recovery is increasing
Preliminary estimate of
bomb cyclone damage
(November 20204) to
Snohomish County is
already more than $20
million.
- The Everett Herald
WASHINGTON STATE DEPARTMENT OF COMMERCE 4
Federal support never guaranteed
• The federal administration in 2020 tabled a $37 million disaster aid
request for the Malden wildfires in a tiff between the governor and
president.
• This was the first time a FEMA request was not approved in 1,000 requests dating
back to 2007.
Average request response: 17 days
• This request: 141 days
• Biden approved a $45 million request within two weeks of taking office
• Response time of next administration is unknown.
WASHINGTON STATE DEPARTMENT OF COMMERCE 5
Why assistance is necessary
According to the Federal Emergency Management Agency:
• 40% of small and mid-sized businesses never reopen after a natural disaster
• 25% of those that reopen fail within a year
Two-thirds of businesses impacted by a fire, flood, hurricane, tornado or
earthquake don’t recover 12 months later.
Lost jobs Lost revenue
WASHINGTON STATE DEPARTMENT OF COMMERCE 6
Why assistance is necessary
• 30% of small businesses are uninsured and 75% are underinsured
• Business insurance policies can have claim and lifetime caps
• Many businesses can’t secure SBA or bank loans as they are at their borrowing limits from
the pandemic
• Without additional coverage, insurance does not cover acts of God, floods, cybercrime,
computer fraud, exterior signage, furnishings or barriers, or losses in transit (event staging,
for example)
• Historically underserved communities often lack the financial reserves necessary to
restart/recover
WASHINGTON STATE DEPARTMENT OF COMMERCE 7
Small Business Disaster Grant Program
• $20 million provided by state Legislature in 2022-23 provided grants to small
businesses that sustained physical damage or economic loss due to a natural
or other comparable disaster.
• $10 million for NW Washington floods
• $10 million for statewide relief
• Applicants received additional points if they:
• Operated in a low-income census tract
• Owned the property
• Lacked event coverage or access to financial assistance
• Were essential businesses
• Lost more than 50% of business income
WASHINGTON STATE DEPARTMENT OF COMMERCE 8
Eligible uses
Funds were used to reimburse qualifying businesses for expenses not covered
by other programs, insurance or other fund sources, including:
• Payroll
• Utilities
• Rent
• Marketing and advertising
• Building improvements or repairs
• Replacing damaged inventory and equipment
WASHINGTON STATE DEPARTMENT OF COMMERCE 9
Eligible disasters included …
• DR-4355: Flooding & Mudslides — Nov 13-15, 2021
• DR-4635: Flooding & Mudslides — Nov. 13-Dec. 2, 2021
• DR-4650: Winter storms, snowstorms, straight-line winds, flooding — Dec 26, 2021-Jan 15, 2022
• FM-5447: Lind Fire — Aug 4, 2022+
• FM-5455: Bolt Creek Fire — Sept. 10, 2022+
• FM-5456: Nakia Creek Fire — Oct 9, 2022+
• DR-4682: Winter storms, snowstorms, straight-line winds, flooding — Nov 3-9, 2022
• Sumner Main Street Fire — Oct. 28, 2022
A permanent disaster fund could have helped small businesses affected by the Friday Harbor arson,
Skagit River Bridge collapse, Oso slide, Malden fire and Ilwaco wharf fire.
WASHINGTON STATE DEPARTMENT OF COMMERCE 10
Program Results — Distribution
Northwest Flood Allocation Statewide Allocation
Total: $7.4 million Total: $5.4 million
Applications Received: 122 Applications Received: 292
Businesses funded: 109 Businesses funded: 107
• Clallam: $535,000 • Benton, Franklin: $62,004 • Okanogan: $391,967
• Skagit: $1,163,000 • Chelan: $82,326 • Piece: $884,104
• Whatcom: $5,690,125 • Clark/Klickitat: $250,185 • Skagit: $619,472
• Tribal: $265,000 • Cowlitz: $156,565 • Snohomish: $279,911
• Grays Harbor: $237,974 • Spokane: $3,462
• Island: $135,557 • Thurston: $306,178
• King: $511,040 • Wahkiakum: $56,645
• Lewis: $57,364 • Whatcom: $668,109
• Mason: $255,681
WASHINGTON STATE DEPARTMENT OF COMMERCE 11
Recipient feedback
“Thank you so much for letting me know; this truly could not come at a better time for the
business as we are just leaning into short-term funding to get through this tight period of time.”
Jacob Young, Old Schoolhouse Brewery, Winthrop
“Wow, thank you very much. This is going to help us out so “Our family-owned farm has been located in the Nooksack
much. We have been so worried about what we were going basin for over a hundred years. The flood was devastating
to do, and this is going to help us immensely. I appreciate to our home and business. We are not located in a flood
this all so, so much.” zone and have never experienced water at that height
before. We had no insurance and little help recovering
from such a devastating disaster. We appreciate and are
Adrienne Jones, Seafood Connection, Westport
very thankful for the NW Disaster Grant as we continue to
recover.”
Williams Farms, Nooksack
WASHINGTON STATE DEPARTMENT OF COMMERCE 12
Recipient feedback
“This funding will allow my studio to survive! I am so encouraged to know that there are
programs and people like you out there who are committed to investing in small businesses, and
I am grateful for the trust and faith in my work that this grant money signifies.”
Hadar Iron, InFerment, Seattle
“Not too many emails choke me up. This one makes a “I am so grateful to have the support of the Department of
gratitude heart swell, causing the tears to flow. Thank you Commerce as my business recovers from the impact of
from my small business to all the parties that make this wildfires in and around our region. This grant will not only
disaster aid possible.” keep the lights on for my storefront studio, but ensure that
I can pay subcontractors in full and on time as my public
-Terry Gifford, Tea and Tour, Sedro-Woolley art projects progress.”
Perry Howard, VMG Velocity Made Good, Twisp
WASHINGTON STATE DEPARTMENT OF COMMERCE 13
Additional support
• Commerce developed an online and printed disaster planner
to help small businesses identify, mitigate and recover from
disasters.
• An EDA grant with $800,000 dedicated to develop a mobile
app version of the planner that businesses nationwide can
use to navigate disruptions, minimize losses and recover
more quickly.
• The EDA grant is also funding the development of a Rapid
Recovery Teams, which allows the state’s Small Business
Liaison Team to respond quickly to local business
emergencies.
WASHINGTON STATE DEPARTMENT OF COMMERCE 14
www.commerce.wa.gov
Keith A. Swenson Dave Pringle
DEPUTY ASSISTANT DIRECTOR LEGISLATIVE DIRECTOR
OFFICE OF ECONOMIC DEVELOPMENT & COMPETITIVENESS
Keith.Swenson@commerce.wa.gov Dave.Pringle@commerce.wa.gov
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