In the aftermath of Hurricane Helene, small businesses in western North Carolina are navigating a challenging path to recovery. A detailed report by Mountain BizWorks highlights both the progress made and the hurdles that remain.
The WNC Strong: Helene Business Recovery Fund was established to offer quick recovery loans to businesses impacted by Helene’s economic fallout. This initiative provided crucial financial support to small businesses struggling in the wake of the disaster.
According to a 2024-2025 survey conducted by the organization, the demand for these loans was widespread, with over 700 small business owners participating nine months into the recovery process. Respondents reported a median financial loss of $95,000 and an average loss of $322,000, indicating that the hurricane’s impact significantly exceeded typical annual profits for many businesses in the region.
READ MORE: Regional survey finds WNC businesses lost an average of $322,000 during Helene
“The timing compounded the crisis: Helene struck at the onset of the region’s busy fall tourism season, which many businesses rely on to carry them through a slow winter,” the report notes. This challenge was exacerbated for many business owners who were still repaying COVID-19 disaster loans.
Initially, the recovery fund provided loans up to $100,000 with a 1% interest for the first year. However, the North Carolina General Assembly later increased the loan cap to $150,000 to extend necessary financial support as it became apparent that recovery would take longer than anticipated.
Businesses used these funds for various expenses, including building repairs, inventory replenishment, payroll, and operational costs. More than 800 businesses benefited from these loans, aiding in the preservation of over 7,000 jobs. Notably, 63% of the loans were allocated to businesses owned by women, minorities, and veterans.
Despite these efforts, the report does not specify how many businesses ultimately closed after Helene. Areas such as Chimney Rock, Swannanoa, and Marshall are still grappling with significant recovery challenges, as noted by Mountain BizWorks.
Factors such as rising interest rates, ongoing infrastructure issues, disrupted supply chains, and decreased tourism are hindering recovery. Additionally, the report highlights concerns over outside investors increasing rents and displacing local businesses, adding pressure to an already vulnerable economy.
The comprehensive Mountain BizWorks WNC Strong: Helene Business Recovery Fund report for 2024-2025 is available online here.
