They either lose their capital, or their margins are so thin they can't survive the loss of cash flow while they repair. Building disaster-resistant communities does more then prevent economic damage. We believe it creates economic opportunities. Disaster-resistant homes and properties have higher values and contribute more to local tax bases. A comprehensive strategy for making a community disaster-resistant is also an excellent selling point as you recruit new employers.
Prospective employers remember too.
There was one corner of Grand Forks that remained above water, dry and undamaged. Before the flood, the park had plenty of vacancies. Today, businesses are falling over each other to get a space there. Because we recognize the connection between disaster prevention and economic development, we've just launched an exciting partnership between FEMA and the Economic Development Administration. Under a memorandum of understanding we signed last month, EDA will be our partner in helping you build disaster-resistant communities.