Small Business Committee Document No. 110-112: Disaster Savings Accounts: Protections for Small Businesses During a Disaster, Hearing before the Subcommittee on Tax and Finance, Committee on Small Business, United States House of Representatives, One Hundred Tenth Congress, Second Session, September 17, 2008 [open pdf - 1MB]
From the opening statement of Melissa Bean: "The recent onslaughts of hurricanes in the southeast, wildfires in California, and floods in the Midwest have served as stark reminders that natural disasters have the ability to devastate local economies. These catastrophes have wreaked significant fiscal havoc, particularly on America's small businesses. For entrepreneurs with tight profit margins, natural disasters can have very serious financial consequences. Small businesses are the backbone of our economy, creating over 60 percent of our nation's jobs, and it's important that they are able to stay afloat following a natural disaster. Yet, an estimated 40 to 60 percent of small businesses fail to recover from natural disasters. Today's hearing will examine one potential method of mitigating small business risk. The first 48 hours following a natural disaster are critical. They determine whether a small business will be able to mitigate losses, or be forced to close their doors. The SBA plays a critical role in this disaster recovery process. SBA's disaster loan program, for example, provides low interest loans and working capital for businesses. This loan plan has been a lifeline for hundreds of thousands of entrepreneurs. By providing the resources necessary for both long and short-term repairs, SBA loans give small businesses the tools they need to get back up and running." Statements, letters, and materials submitted for the record include those of the following: Melissa Bean, Vern Buchanan, Charles G. Brown, Cynthia Murphy, Maryann Mize and Kate Grayson.
Small Business Committee Document No. 110-112
Government Printing Office, Congressional Hearings: http://www.gpoaccess.gov/chearings/index.html