The Impact of Natural Disasters on Small Businesses

The 2021 Small Business Credit Survey (SBCS) found that 1 in 10 small employer businesses suffered losses from a natural disaster during the prior 12 months. According to the National Centers for Environmental Information, the United States experienced 20 billion-dollar natural disasters in 2021, making it one of the costliest years in recent history. Major events included Hurricane Ida, the historic cold wave in Texas and other southern states, and the destructive wildfire season in the West. To more deeply explore the impact of these and other natural disasters on small businesses, the SBCS includes a module of natural disaster-related questions for affected firms. This fact sheet outlines some of the major findings from the 2021 SBCS for employer firms with respect to natural disaster impact.