Q&A: Protecting Houston’s prosperity from disaster requires rapid coordination – and money | Kinder Institute for Urban Research

This article is part of a series highlighting results from the 2024 Kinder Houston Area Survey.

The fast, straight wind killed eight people. Although the official monetary cost of the damage has not been released, estimates in the billions are not unrealistic.

Earlier today, a meeting of the Houston Ready Task Force was called by disaster recovery expert Angela Blanchard and Mayor John Whitmire. Speakers included Francisco Sánchez Jr., associate administrator for the Office of Disaster Recovery and Resilience at the U.S. Small Business Administration. Sánchez previously served in Harris County government as deputy coordinator for Homeland Security and Emergency Management.

“Talk about opportunity,” Sánchez said. “We were there together, figuring out how to prepare for the next disaster, and it was only a few hours away.”

On May 20, four days after the storm, the 43rd Kinder Houston Area Survey was released, presenting numerous findings on how residents believe climate change will impact the area’s economy and people’s life.

Nearly 60% of those surveyed said they were “concerned,” “very worried” or “extremely worried” about the impact of climate change on the region. Eighty-six percent said it was at least somewhat likely that their quality of life would be compromised by climate change. The same percentage of residents believe Houston’s economic prosperity will be affected.

Since the SBA’s role in disaster recovery goes far beyond helping businesses – it is the largest source of funds for all survivors – Urban Edge spoke with Sánchez about the importance of community coordination and the need for financial resources to meet the imminent threat. The interview has been edited for length and clarity.

What do you remember from the Houston Ready meeting?

The most important thing we take away from this meeting is that people knew each other. We knew our priorities and we knew what we needed to do collectively as a team to respond and recover after a disaster. This is not an easy task. Often, disaster is a game of pickup. Who is available now? We don’t have time to build effective relationships immediately after the storm. People left with a feeling of renewed confidence or a new level of trust and knowledge with each other. We have seen in recent years a change in leadership at some of the key nonprofits that form the backbone of our recovery.

People may not immediately think of the SBA when it comes to disasters. What role does it play?

The SBA manages underinsured private property losses for homeowners, renters, businesses, and private nonprofit organizations. The history of SBA is often underestimated. Most people didn’t know the SBA played a role in disasters before COVID. As an example, Houston’s entertainment industry benefited from the Shuttered Venue Operators Grant program administered by the SBA during COVID. This program has awarded more than $163 million to more than 100 Houston institutions, and the Houston Symphony alone has received more than $7 million.

Eighty percent of our disaster loans are for homeowners and renters, and only about 20% are typically for businesses. The reason we focus on this is because employees and customers are an essential part of our businesses. We need to make sure the entire community recovers.

I see my role as replacing repetitive losses with economic opportunities. We find that, overall, the same communities are being impacted over and over again. So how can we ensure that when we rebuild small businesses and the economy, they not only recover from the immediate disaster, but also strengthen them for future storms? That means giving capital as quickly as possible so they can recover, and also making sure they have mitigation options. It’s about looking at resilience in a much broader perspective. It is not simply a question of rebuilding a structure as it was before. How to make a business more resilient from a broader perspective? The SBA concerns capital, consulting, contracting and disaster recovery.

How has the SBA evolved over time?

We were a lend and leave organization. We would come in, give long term, low interest loans and leave. As we see the growing impacts of climate change and the number of billion-dollar disasters increasing year after year, we are meeting our expectations and ensuring we use every authority possible. The basis for this is long-term loans with low interest rates.

For owners who experienced this disaster, they could benefit from a loan at 2.68% interest over 30 years. For a business, the interest rate is as low as 4% over 30 years. In this market, that’s the kind of access to capital that people need. It’s cheaper than a credit card from your favorite hardware store. This is cheaper than what the bank and contractors will finance you for. We have implemented a 12 month deferral with 0% interest. This 12 month 0% deferral allows people to focus on what matters most, their own personal recovery.

How does Houston become more resilient to climate change from an economic perspective?

Houston is home and I will be back when my role with the SBA is complete. But when I came back, it helped me see the community in a different way. I was passing by the Texas Medical Center and a few thoughts came to mind. Even during Hurricane Harvey, billions of gallons of water fell and the medical center was barely flooded. This is a testament to what we can do as a community. If state, local, federal, business, and nonprofit organizations come together to invest in the resiliency of an incredibly valuable asset that is the medical center, what would happen if we applied this approach to investing in the resilience of human capital and in the things that mean the medical center? the most for this community? We need this type of energy that we have built to protect the medical center and apply it throughout the region. Imagine the beacon of economic opportunity that Houston and Harris County can become.