Small businesses are disproportionately impacted by natural disasters, data shows. In a report from FEMA and the Department of Labor, 40% of small businesses do not reopen after a natural disaster and another 25% shutter within a year.
The U.S. Chamber of Commerce Foundation aims to help close the financing gap for those businesses impacted by disasters. Coupled with resources to improve disaster preparedness, the Foundation’s Small Business Readiness for Resiliency Program, developed in partnership with FedEx, is a good way to mitigate risk for your venture.
[Read more: How to Write an Emergency Preparedness Plan in 7 Steps]
What is the Small Business Readiness for Resiliency Program?
The Small Business Readiness for Resiliency Program (R4R) is a multi-year initiative to empower small business owners to proactively mitigate the risks posed by disasters. R4R helps small businesses build resilience into their operations, as well as provides quick-turn relief funding of $5,000.
According to the Foundation's website, participating businesses go through three steps to improve their disaster preparedness:
- Step 1: Review and complete the FedEx and American Red Cross Emergency Preparedness Checklist for Small Businesses.
- Step 2: Once the checklist is complete, interested business owners can take a quiz to see if they are eligible for the program. Eligible businesses can then register.
- Step 3: Apply for a grant. "Our team will closely monitor emergency orders and disaster declarations from U.S. states and territories. Should a disaster occur in your area and your business meets the following program criteria, we will reach out with instructions on how to apply for a grant," according to the Foundation's website.
The R4R program is available to any small business with 500 employees or less and an EIN that meets the program criteria. Nonprofit organizations are not eligible to be part of this program. Businesses that meet the program requirements can register for the R4R database. When a federal disaster declaration is made in their region, participants are eligible for relief funding of $5,000.
When a federal disaster declaration is made in their region, participants are eligible for relief funding of $5,000.
What kinds of disasters can the U.S. Chamber Foundation help with?
In the event of a state-declared State of Emergency order or disaster declaration, the U.S. Chamber Foundation will assess the situation and determine if grant support is necessary. In 2024, the U.S. experienced 27 disasters, causing $182.7 billion in total losses.
“These disasters included severe storms, hurricanes, wildfires, floods, and winter storms—and represent only a portion of the 90 major disaster declarations issued by FEMA in 2024,” wrote the U.S. Chamber Foundation. “The rising frequency and cost of these events underscore a critical truth: it’s not a matter of if disasters will strike, but when—and small businesses must be prepared for these disasters to impact their communities.”
What can R4R funds be used for?
Grant recipients will be asked to complete two post-grant impact reports demonstrating how they spent the money. Grantees have reported using funds in various ways. Some use the money to cover critical expenses, such as repairing or rebuilding damaged structures or moving locations. “Nearly half of businesses said the funds helped them build their customer base through marketing and advertising or pay employee salaries,” reported the Foundation.
“This grant was incredibly helpful to get back to work quickly. We were able to use some of the funds to help address needs we identified and how to avoid challenges in the future. The biggest thing it did was boost our confidence and resilience. Now we are in a groove, hired a part-time helper, and are looking to grow,” said Jeff Burkart, the owner of Bridgeway International in Houston, Texas.
Don’t wait until the next disaster hits to find assistance. Download the R4R checklist to add your business to the Foundation’s database and make sure you’re eligible for emergency funding.
To get started and sign up for the R4R program visit the U.S. Chamber of Commerce Foundation here.
[Read more: How to Create a Resilient Business]
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