How To Help Your Small Business Recover From Disaster

Business owner looking through receipts

Disaster isn’t something we like to talk about, but it’s something we need to prepare for. Some disasters are caused by natural events, while others are caused by human acts, both unintentional and deliberate. In 2020, we experienced a disaster unlike any other: COVID-19, a hopefully once-in-a-lifetime pandemic.

In many states, governors ordered all nonessential businesses to shut down and directed residents to stay home. Streets and grocery aisles were empty and big events and holiday gatherings were cancelled. It was a type of disaster none of us could even fathom in 2019.

We’re still feeling the effects of the pandemic – one we’re still very much in. Variants are popping up, people are still getting sick, supply chain shortages are inflating prices, causing empty shelves and causing uneasiness in the economy.

If there’s one thing the last two years have taught us, it’s that even the unthinkable can happen.

When any type of disaster strikes, small businesses are the ones that suffer most. Some businesses are still grappling with next steps, while others have shuttered for good. It’s no surprise. According to the Federal Emergency Management Agency (FEMA), about 40% of small businesses never recover from disaster.

Knowing the steps to take to help your business rebound can help you avoid becoming another statistic. Here are some important tips to help your business get through a disaster. And as always, Rocket ProSM TPO is here to assist in any way we can.

Consider All Possibilities

If 2 or 3 years ago, someone said that a global pandemic would occur and the world would shut down, we would’ve thought they were crazy. Now we know that what seems impossible is actually possible and, with that knowledge, we can prepare a little better.

When thinking of possible scenarios, there may be some you can rule out based on your location. For example, if you’re in the middle of the U.S., you may not need to worry about hurricanes. If you’re in the deep south, chances are your business won’t be shut down for days because of 3 feet of snow. However, due to the effects of global warming, many areas across the U.S. are experiencing more aggressive and unusual weather. It may be best to look at your area historically or talk to local experts who can best help you understand the likelihood of certain disasters in your area.

Stay Updated

When it comes to disasters, there are typically updates by the minute. While you’ll likely want to limit your intake of news, you still want to stay updated on what’s happening so you can make timely decisions and plan for what’s ahead. You’ll also want to make sure you and your business are abiding by your local, state or federal government’s executive orders.

While staying informed, it is best to limit the number of sources you use and make sure they’re reliable, non-biased and have authority on the matter. A few established and balanced news sources include the Associated Press and the Wall Street Journal. In health disasters, like COVID-19, two reliable sources would include the Centers for Disease Control and Prevention (CDC) and the World Health Organization (WHO).

During national disasters, we’ll also provide the information you need to help your business. For example, in the throes of COVID-19, we created a resource page that lists current mortgage process updates based on each state and county. It also included helpful blogs about appraisal updates, suspensions and industry news, as well as messages from our TPO leaders.

Know Your Resources For Assistance

The first place to go when you’re looking for assistance is the U.S. Small Business Administration, a federal agency that supports small businesses. With all the information that’s out there, you can quickly experience information overload. Finding a one-stop shop for all other resources may make the process a little less overwhelming. There are also resource guides many places put together in response to certain disasters. For example, Rapid Finance put together a resource guide for small-business owners affected by COVID-19 that provides information on loan programs, business resources and government relief programs for each state.

Assess The Situation And (Potential) Damage

If disaster strikes, decide what needs to be done that day, then plan from there. Address any immediate issues and create a strategy for fixing them. Try not to tackle too much at once. If your business is currently closed, figure out how long your cash reserves will last and how much money you’ll need moving forward to stay afloat. Then, use your resources to apply for loans, grants and other assistance.


If your business is currently open, take stock of how it’s being affected. Are leads down? If so, by how much? Will you need to borrow money now or in the future to make up for the loss? Are leads up right now? If so, how can you use the extra business to better prepare for the future? If you expect business to plateau or even decline, how can you prepare now while you’re still successful?

Plan Ahead To Recover From Disaster

As you adjust to the current normal, try to look ahead to what the new normal may be when everything is said and done. Will clients be spending less money for the foreseeable future? Do experts predict that this will negatively impact the market? How will this impact your specific business? If your business is currently closed, how will you communicate with clients that you’re back in business? What plan can you put in place should another disaster happen shortly after this one?

We can rarely control when or how a disaster will strike – especially when it’s on the global scale – but there are some steps you can take to control how it will affect your business. As you work through assessing the current state of your business and make plans for the months and years ahead, your TPO Account Executives are here to offer support and guidance.