Steps in Economic Recovery and
How IEDC might be helpful
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Jeff Finkle, CEcD
October 11, 2017
Economic Developers try to create, retain, and expand
jobs; develop tax base and enhance wealth.
The International Economic Development Council (IEDC)
is the 91 year old non-profit membership organization
dedicated to helping economic developers do their job
more effectively.
When we succeed, our members create more high-
quality jobs, develop more vibrant communities, and
generally improve the quality of life in their regions.
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About IEDC
What have other communities done
Steps in an Economic Recovery
Federal Tools
Where you can find Knowledge
IEDC’s Work in Resiliency & Economic Recovery
Summary and Conclusion
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Outline
What have other communities
done?
• Grand Forks Flood
– Red River; North Dakota/Minnesota, 1997
• Northridge Earthquake
– Northridge (Los Angeles) CA, 1994
• Hurricane Andrew
– Dade County (Miami) Florida, 1992
Grand Forks Flood
§ Over 80% of City covered with water,
including the downtown/business district
§ Destroyed more than 800 homes
Grand Forks: What Did They Do?
Initial/Immediate Actions:
Initial/Immediate Actions:
§ Set up Business Recovery Task Force
§ Identify Immediate Needs
- Housing & Economic Assistance to Small
Businesses
§ Inter-Departmental Group for Business
Retention
Grand Forks: What Did They Do?
Funding to Businesses
• Grand Forks Growth Fund (CDBG
funds)
• Bridge Financing til SBA loan approved
• Fund disaster-related needs not covered by
SBA
• Assist businesses denied SBA loan
– Partial Forgiveness
• SBA Approved Loans: 1,889, $85
million
Grand Forks: What Did They Do?
Longer-Term Activities to Rebuild
• Community Discussion
– Input & Guidance from Consultants &
Experts
– Community Charrettes
• Downtown & Neighborhood Vitality
– Community Identity Preservation
– Re-establish neighborhoods with federal
dollar
Grand Forks: Outcomes
• Most Businesses Survived:
– Function of previous financial and
management health
– Re-built in Same Location
• 40 damaged buildings removed downtown
& replaced
• Lost Housing by River now Green Space
• Indicators of Vital Community
Grand Forks: Lessons
• Craft Federal Funds to Create Appropriate
Programs for Community
– Funds need to be flexible
• Use good business sense in accepting and
using dollars
• Keep Long Term in Mind when dealing in
the short-term
• Bring in the Best Assistance & Expertise
The Northridge Earthquake
• 20 miles north of Downtown L.A.
• Damaged up to 1,000 buildings
• Major Transportation Infrastructure
Destruction
• Business Damage & Disruptions
– Aggregate Business Losses nearly $6 billion
– Business Physical Damage: 57%
– Business Relocation: 5%
Northridge: What Did They Do?
Immediate Actions:
• Basic Disaster Funds & Low-Interest
Loans
Funding to Businesses:
• 50,000 SBA Loans (about 30% declined)
• Many businesses used other form of
assistance
Northridge: Outcomes
• About 50% of businesses in survey
indicate equal well-being before and after
the quake
• 25% were better off
– Stimulus provided by the earthquake itself
– Upturn in the economy
• 25% worse off
– Sector and Size determining factor
Northridge: Lessons
• Maintaining Life-Line Services is Key
– Transportation, Water, Electricity
• Need to Increase Federal Assistance and
Recovery Aid
– Publicity, increased awareness,
• More Flexible Programs
– Grants to weak businesses
– Require less documentation
Hurricane Andrew: Impacts
• Firms that survived found themselves operating
in a radically different environment.
– Vendors had to be replaced, huge employee turnover
– Loss of many small businesses
– Demographics of local population re-cast
• Loss of 30,000 jobs
• Longer-term increases in cost of living &
Business costs
Hurricane Andrew:
What Did They Do?
Funding to Businesses:
• Florida Small Business Emergency
Bridge (SBEB)
– Short-term, emergency funds, up to
$25,000
– 90-180 day maturity, no payments during
term
– Interest free, no fees, quick approval
EDA Recovery/Redevelopment Programs
• 28 projects = $50.9 million
– Varying levels of success
Hurricane Andrew: Outcomes
“Working to simply replace is not always
effective.”
–Maria Pellerin Barcus, Executive Director of Carrfour Supportive Housing Inc.
• Unanticipated ripple effects
– Comprehensive Planning Overlooked
– Jobs far from housing
• A year or more to rebuild
• Businesses enhance insurance coverage and
contingency planning
Hurricane Andrew: Lessons
• Target Communities Directly impacted
• Focus immediate rebuilding efforts on vital
infrastructure and commercial concerns
• Enforce standard monitoring procedures (eg,
require periodic status reports)
• Provide consistent, ongoing oversight both on-site
and from agency headquarters
• Quickly rehabilitate or terminate projects that are
failing to meet milestone goals and transfer funds
to the disaster recovery purposes.
Steps in Post Disaster
Recovery
Steps in Post Disaster Recovery
Analyst
• Understand current conditions/damage to critical
industries, businesses, property and infrastructure
• Assess impacts on long-term viability of
businesses/industries
• Provide cost/benefit analysis of recovery projects
Steps in Economic Recovery
Catalyst
• Participate in Business Recovery Task Force to
identify immediate and long-term recovery efforts
• Garner input and support for critical recovery
initiatives
• Update strategic plans to match current realities
Steps in Economic Recovery
Gap Filler
• Conduct concerted outreach to reconnect with businesses
and identify at-risk companies
• Assist with bridge-loan financing until SBA loan approval
• Provide business recovery assistance and services
• Develop programs/intiatives as needed to support long-
term recovery
Steps in Economic Recovery
Advocate
•Seek funding opportunities for recovery
initiatives
•Communicate priorities and need for policy
changes to state and federal leaders
Steps in Economic Recovery
Educate
• Facilitate flow of accurate info to businesses
• Communicate “open for business” and “we need help and
resources” messages
• Develop and distribute a disaster recovery guide
Steps in Economic Recovery
Vision
• Envision how community can build back stronger,
more resilient
• Connect public/private resources for building back
a more resilient community
Understanding the Federal
Resources
Primary challenges involved with accessing federal
funds to restore a local economy after a disaster
Limited funds
lack of flexibility
inconsistent requirements
Political nature of disaster funding
Understanding Federal Resources
• Key Agencies
1. FEMA
2. SBA
3. DOT
4. EDA
5. HUD
6. Dept of Ag
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Where can you find knowledge?
RestoreYourEconomy.org
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Provides economic development professionals and local leaders with
practical guidance and info to assist in disaster preparedness and post
-disaster economic recovery
Serves as a one-stop resource:
o Best practice information
o Reports /publications
o Case studies
o Tools
o Event announcements
o Webinar recordings
RestoreYourEconomy.org
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RYE has received over
100,000 visitors
Well linked as a resource
o Over 1,000 links connect to the
website
100+ free webinars, reports,
publications, and
presentations for download
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A Toolkit for
Economic Recovery
& Resiliency
Sponsored by EDA
*A customized version is available for Canada*
RestoreYourEconomy.org
Economic Recovery Program
Since 2005, IEDC has
delivered disaster
preparedness and
economic recovery
support to American
communities:
• 70+ technical
assistance projects
• 50+ knowledge-
sharing events
• 50 webinars
• Countless reports
and papers
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Types of assistance
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Volunteer Deployment
o Since Hurricane Harvey and Irma, IEDC has gathered 90 volunteers
o They will be deployed for one week at a time
Economic Recovery Assessments
o Captures and organizes essential business recovery needs
o Work can be done remotely or in person
Business Assistance
o Surveying businesses
o Case management
o Organization and staffing a business recovery center
Types of assistance
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Training
o Customized courses for disaster-impacted communities
o Webinars
Organizational Management & Capacity Building
o Technical assistance projects, research papers
o Handling large programs, logistical tasks, and management of teams.
o Technical Assistance – long-term
o Teams of experts visit and give recommendations
Volunteer Deployment to Build
Capacity for Economic Recovery
• We prepare volunteers and connect them with
local EDOs who work with IEDC to create the
work plan.
• Through EDA funding, we cover travel and
logistics
• On-site work is done for one week
• Technical assistance teams give advice for long-
term recovery
Volunteer Program - Post-Katrina
Economic Recovery (2005-2008)
Deepwater Horizon – Oil Spill
Volunteers contributed 850 days of
service to distressed EDOs and
their constituent businesses.
Volunteer Program
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IEDC Volunteer Program for Post-Katrina Economic Recovery in Gulf
Coast (2005-2008)
Volunteers contributed 850 days of service
Highlights:
o Briefing for over 145 small business contractors and developers on
emerging opportunities in the 17 Target Recovery Zones
o Consultations on economic development best practices,
o Organizational assessments and strategic planning,
o Organizational mentoring and capacity building,
o Orant-writing and resource development assistance,
o Disaster preparedness counseling.
o Small business recovery counseling.
Economic Recovery Assessment
Immediately After a Disaster
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Cedar Rapids Economic Recovery Assessment (2008)
o US Chamber of Commerce’s Business Civic Leadership
Center
o Addressed the recovery needs or gaps
o Provided specific recovery recommendations.
Galveston Economic Recovery Assessment Technical
Report (2008) (Hurricane Ike)
o Economic impacts
o Business retention, small business
o workforce
o the city’s leadership role
o the downtown district
o strategic planning
o communications strategy
o organizational issues
Small Business Assistance
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Federal Disaster Recovery Funding: Minimizing
Roadblocks to Maximize Resources (2013)
o Guidance on which federal agencies assist communities
and states in economic recovery
o How to assist small businesses
o Guidance on obtaining waivers of specific funding
requirements
Case Studies on Post-Disaster Small Business Finance
Programs (2014)
o Briefing highlighting six case studies of how American
communities have utilized public, private, and a mix of
public and private funding to aid small businesses to return
to operations and thrive following a disaster
Other Options
Technical Assistance for
Long-term Recovery
Technical Assistance -
Long-term Recovery Strategies
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Developing a Regional Tourism Strategy for Greater
Galveston Region (2010) (Hurricane Ike)
o Tourism recovery strategy for four counties in TX.
o Recommends key opportunities, challenges, and
action steps.
Action Plan for Strengthening the Beaumont
Region’s Entrepreneurship Ecosystem (2012)
(Hurricane Ike)
o Complete analysis of the region’s observed
entrepreneurship strengths and challenges.
o Provides a comprehensive set of recommendations for
the Commercialization Center and the Beaumont
region.
Technical Assistance:
Implementing Recovery Strategies
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Recreating Destinations: Rebuilding the
Tourism Industry after Disaster (2013)
(Hurricane Ike)
o Highlights key partners in the post-disaster economic
recovery stages for the tourism industry.
o Overview of strategies for immediate and short-term
recovery stages
o Strategies to build stronger, more vibrant tourism
Rebuilding the Fisheries Industry Following a
Disaster (2013) (Hurricane Ike)
o A web page of resources and links for rebuilding the
industry.
o Challenges and strategies for recovery
Technical Assistance:
Hurricane Irene Impacted Communities
From 2012-2016, IEDC fulfilled 3 grants for EDA-Atlanta and EDA-
Philadelphia totaling $2.6 Million post hurricane (2010)
Work covered declared disaster areas and non-declared
neighboring counties and cities
Tasks:
o Needs Assessment
o Community Leadership Training
o Technical Assistance
o Best Practice Research
o Interactive Workshops
o Economic Development Consulting & Technical Assistance Teams
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Strengthening Business Retention,
Expansion, and Attraction Efforts In Town of
Union, NY (2014) (Hurricane Irene &
Flooding)
o Recommendations on how to improve the
Town’s BRE and attraction efforts to promote
resiliency for future disasters.
o North Carolina project (2015-2016)
o Assisted a 10-county area with strategic
planning and economic diversification advice.
Technical Assistance -
Hurricane Irene
Technical Assistance in Springfield, MA
o In 2014 - Published a report on “Targeted Neighborhood
Redevelopment in Six Corners and Old Hill for the City of
Springfield, MA” for local clients City of Springfield and
Rebuild Springfield
Technical Assistance in Cumberland County, New
Jersey
o Site visits (2014 – 2015)
o Ways to enhance tourism recovery strategies and
economic resilience in the Bayshore area
o Final report is being delivered this week
o Technical Assistance to Pawtucket, Rhode Island
o Site visit January 2015 – Downtown revitalization project
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Technical Assistance -
Hurricane Irene
Implementing Recovery Strategies
Aligning Partnerships for a New Business Incubator in Tuscaloosa, AL
(2014) (Post-Tornado)
o Workshop for the city, university, and EDGE Center partners to
discuss goals, roles and strategies
Economic Recovery for Colorado Springs & the Town of Manitou
Springs , Colorado (2014) (post forest fires and flood)
o Long-term recovery strategy team of IEDC members and federal
officials provided recommendations in 2 visits
Training for
Resiliency & Economic Recovery
Training in Disaster Preparedness &
Economic Recovery
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Leading Economically Resilient Communities: What Public Officials
Need to Prioritize Before & After a Major Economic Disruption
(2012) (Hurricane Ike)
o Held in Houston, TX and Lake Charles, LA
o Focused on how public officials can support critical economic preparedness and
recovery activities within their community to protect key economic assets and
encourage resiliency among local businesses in the event of a major disaster.
Lessons from National Post-Disaster Response & Recovery,
Presentation to Baton Rouge, LA (2005) (Hurricane Katrina)
o Provided overview of Katrina and comparison to other hurricanes
o Provided example of disaster recovery efforts and strategies from three major
disasters
o Outlined optimal recovery strategies for economic recovery
Training in Disaster Preparedness &
Economic Recovery
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Building a Stronger Entrepreneurship Ecosystem - Beaumont, TX
(2013) (Hurricane Ike)
o Connecting entrepreneurs and small businesses to capital
o Provided strategies for building organizational capacity
o Organizational Management and Finance for Business Incubators
Capital Access for Entrepreneurs – Lake Charles, LA (2013)
(Hurricane Ike)
o Interactive workshop for small business support organizations, funders and
entrepreneurs
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Interactive course for community leaders in
Resiliency & Economic Recovery
Originally developed for the Delta Region
Now taught in14 states (2015 – 2017)
o Interactive workshop for community leaders
o Courses available from 90 minutes up to 2
days in length
o 10 course modules customized to regions
Training in Disaster Preparedness &
Economic Recovery
In summary, some
lessons learned
Lessons Learned: strategic
planning pre- and post-disaster
Communities must build “resiliency” into their thinking, vision
and plans
EDOs should take an active role in planning and encourage
steps to build back better, for example in infrastructure
improvements
o Having “shovel-ready” plans helps expedite funding
o It’s human nature that people and businesses like to be near
water, but EDOs should not encourage development within
flood-prone areas
o Sometimes it is helpful to get outside advice and facilitation
Lessons Learned: variety of
creative financing is needed
Many businesses do not have the proper insurance either for floods or
business continuity – encourage business continuity training
Finance:
o Small businesses lack sufficient working capital to survive following an
incident
o Businesses struggle with long-term financing needs
o Less than 25% of businesses that apply for SBA funding actually qualified.
o Relax documentation requirements, no fees is a big help
o Consider setting up a grant fund for businesses most in need
Small business owners often lack knowledge of how to operate in a post-
disaster environment – offer case management
Lessons learned: crisis
communication
Timely, accurate communication is vital need during and
after a disaster
o Prepare a spokesperson
o EDOs should have personal contacts for business owners
o EDOs are using social media to reach out during crises
o Communicate jurisdiction is open for business to help get commerce
going again
o Setting up a business recovery center is a key activity of
EDOs for long-term recovery
o Should be easy to access, can even be a mobile center
o One-stop location for forms, advice, case management for
businesses
Conclusions
Keep a Broad Perspective
o Comprehensive Plan & Stimulus Plan
o Community Input
o Expert Opinions
o Learn to use all state and federal resources
o You’re not alone: jump-start your recovery with best practices
of other communities (see RestoreYourEconomy.org)
Focused Recovery Groups
o Business Recovery Task Force (local)
o Long-Term Recovery Task Force (local, regional, state)
o IEDC volunteers - what can you delegate?
o Technical assistance teams long term strategies
Lastly…
Patience
“When you are in the middle of it, it
doesn’t make sense. But you have to
catch your breath and think about how
you want to rebuild your community.”
– Rick Duquette, Grand Forks City Administrator