New recovery infrastructure aims to protect jobs, stabilize local economies, and help small businesses recover before temporary disruption becomes permanent closure

SAN ANTONIO, May 26, 2026 /PRNewswire/ — As disasters intensify across the United States and recovery costs continue to rise, LiftFund announced the launch of a new Small Business Disaster & Resilience Fund, a national recovery initiative designed to help communities recover at the speed small businesses need. 

The fund aims to address one of the most persistent failures in disaster recovery systems nationwide: the inability of small businesses to access rapid capital before temporary disruption becomes permanent closure. 

In 2024 alone, 27 disasters caused more than $1 billion in damage each, eight more than in 2022.

From payroll and rent to utilities and supplier obligations, small businesses face immediate financial pressure after disaster strikes. Yet traditional recovery assistance often arrives weeks or months later, long after critical business decisions have been made, and many businesses never qualify for aid.

“Small business recovery is community recovery,” said Amy Hereford, President and CEO of LiftFund. “When businesses close after a disaster, communities lose jobs, local services, economic stability, and part of their identity. The goal of this fund is to build recovery systems that move before irreversible damage occurs.”

The initiative was introduced during The Business of Rebuilding, a convening held in Kerrville, Texas on May 13 that brought together leaders from business, government, banking, philanthropy, and community organizations to discuss the growing national need for faster, more coordinated small business recovery systems.

In July 2025, Kerrville and surrounding communities experienced catastrophic flooding that experts estimate caused between $18 billion and $22 billion in damage and economic loss, devastating homes, infrastructure, tourism, and small businesses. Since the flood, LiftFund has distributed $14 million through more than 500 grants and zero-interest rate loans to Kerr County-area businesses. 

“Many Kerr County businesses were able to retain employees and reopen sooner because emergency funding arrived quickly in this case,” said Hereford. “Most recovery systems were not designed around the realities small businesses face. Without financial support in the first two weeks after a disaster, up to 40% of businesses could close permanently.”

The Small Business Disaster & Resilience Fund is designed as a standing recovery infrastructure capable of activating immediately after a disaster strikes. The model would provide stabilization grants and emergency capital within days while supporting long-term rebuilding through flexible financing, working capital, and resilience-focused investments. 

The initiative is intended to help communities preserve local jobs, stabilize commercial corridors, and accelerate economic recovery by ensuring small businesses have access to capital during the most vulnerable stages of disruption. 

The fund is intended to complement existing systems such as FEMA, SBA disaster loans, insurance programs, and local recovery efforts by delivering faster, community-based support through trusted local partners. 

LiftFund brings decades of disaster recovery experience to the effort. Over the past 30 years, the organization has supported recovery efforts across more than 50 disasters nationwide, distributing more than $230 million to more than 12,000 small businesses and helping support approximately 50,000 jobs in communities ranging from Houston to Los Angeles. 

“Texas has an opportunity to lead the nation in how we support small businesses after disaster,” said State Representative for Texas House District 53 Wes Virdell. “Recovery depends on more than rebuilding roads and infrastructure. It depends on whether local businesses can reopen, workers can stay employed, and communities can remain economically stable. That requires systems prepared to move at the speed recovery demands.” 

LiftFund leaders emphasized that while roads and infrastructure often become visible symbols of recovery, small business disruption can persist quietly for months or even years after a disaster.

During the Kerrville convening, leaders from the Federal Reserve Bank of Dallas presented economic research and recovery data related to small business resilience, while local business owners and policymakers discussed the real world impacts of disaster interruption.

The long-term goal is to create a nationally scalable model capable of helping communities respond faster, preserve economic stability, and reduce the long-term ripple effects disasters have on jobs, housing stability, healthcare access, and regional economic recovery. 

“We already know what works,” Hereford said. “Now we must build systems capable of moving at the speed recovery demands.”

More information about the Small Business Disaster & Resilience Fund is available at www.liftfund.com/recovery-fund. 

About LiftFund 

LiftFund is a national nonprofit community funder providing small business loans, disaster recovery financing, grants administration, and technical assistance to entrepreneurs across the United States. With more than 30 years of experience, LiftFund operates in all 50 states and focuses on deploying capital through responsible, recovery-focused lending models. In 2025, LiftFund received the Outstanding Community Development Financial Institution Award for its leadership in rebuilding local economies following disasters and economic disruption.

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SOURCE LiftFund