Reports - Mississippi Renewal

THE GOVERNOR’S COMMISSION REPORT | 93be another reason why some potentialemployees have not returned to orsought work.Alternative Income and BenefitsAmericans have given generously toSouth Mississippi since the hurricane.The American Red Cross and a hostof non-government agencies have providedfree food and clothing as well asemergency shelter. Some are also providingdirect financial assistance. FEMAhas provided thousands of Katrina victimswith cash payments up to $2,000,and the federal government has liberalizedits food stamp program for Katrinavictims. Many employers have guaranteedsalaries to employees for a periodafter the hurricane. In addition to allthis assistance, MDES expedited theprocess for unemployment assistance tothose who lost or could not find a job.Consequently, many potential workershave little financial incentive to returnto work immediately. As these benefitsend, and businesses competitively increasetheir wage levels, more workersshould be available to meet demand.Until then, small businesses are findingit especially difficult to attract workers.Communication DisruptionsThere were unusual communicationschallenges in getting business assistanceto those who needed the help. Katrinaknocked out all telephone service, andfor more than a month wireless communicationcapability was significantlyreduced. In Hancock County and portionsof Harrison County, telephoneservice remains extremely limited. Thepopulation has been dependent uponcell phone service since the hurricane,but there is no directory of cell phonenumbers available. Internet service toSouth Mississippi was interrupted andMany smallbusinesses seeno advantagein openingquicklybecausetransportationproblems denythem customersor employees.in the hardest hit areas, Internet serviceis still not available. Small businesses relyheavily on wireless communications tomanage inventory and serve customers.Access to Capital IssuesBusinesses need capital to repairand recover. Insurance payouts can beslow in coming simply because of thesheer magnitude of this record-breakinghurricane season. Additionally, the“flood/wind damage” conflict affectsbusiness—especially small business—asmuch as it does homeowners. Untilthey receive insurance payments, smallbusiness owners have to rely on individualsavings to cover personal and businessrecovery expenses. Those not fullyaware of bridge loans and other financialassistance – or those not taking advantageof it – are least likely to reopensoon. Moreover, many small businessesdid not have sufficient business interruptioninsurance coverage, and lostincome since August results in limitedcapital to invest in rebuilding.Many small businesses are not yetaware of the very helpful tax and lowinterestincentives recently passed byCongress and the state. The appropriationgives $441 million to the SmallBusiness Administration Disaster LoanProgram for homeowners and businessessuffering physical damage andeconomic injury.Lack of DaycareMost daycare facilities are small businessesand were either completely destroyedby Katrina or are slow in reopeningfor the same reasons of otheremployers. Without daycare facilities,many potential employees who haveavailable housing need someone to carefor their children before they can returnto work.