Dakota Businesses Fortify for the Future

Financing is a central part of future-proofing a business, and SBA-backed loan programs are designed to give owners flexible, affordable options. The SBA’s 7(a) loan program is the most common, covering everything from working capital to refinancing. The 504 loan program, administered in partnership with Certified Development Companies, offers long-term, fixed-rate financing for major assets like real estate or equipment. For smaller, more targeted needs, the SBA Microloan program provides loans up to $50,000 through local intermediaries, ideal for startups or modest capital improvements. When disaster strikes, SBA disaster loans, like the Economic Injury Disaster Loan (EIDL), provide low-interest, longer-term relief for working capital and recovery costs. The key is to familiarize yourself with the basics before you need them so you’re not scrambling during an emergency.

For employers of National Guard or Reserve members, the Military Reservist Economic Injury Disaster Loan (MREIDL) can be a lifeline. If a key employee is called to active duty, the program offers working capital to offset the resulting loss in revenue. While not every business qualifies, owners should research eligibility and documentation requirements in advance, as these loans have specific timelines and application procedures. Knowing that this resource exists, and how to access it, can make a significant difference when military service impacts your staffing.

Preparedness, however, is not just about funding. Ready.gov and FEMA’s Ready Business resources offer step-by-step guidance on creating and testing a continuity plan. This means identifying a small leadership team to make quick decisions, setting remote-work protocols, prioritizing your most critical functions, and establishing clear communication chains for employees and customers. Annual tabletop exercises, short, scenario-based drills, can reveal gaps in your plan you might never notice on paper. Ready.gov also offers checklists for IT recovery and supplier contingency planning, helping you address vulnerabilities before they become crises.

Veterans, service members, and military families have access to targeted programs through the SBA’s Veterans Business Outreach Centers (VBOCs) and entrepreneurship training such as Boots to Business and Military Spouse Pathway to Business. These initiatives provide free training, one-on-one coaching, and direct connections to lenders and mentors. In the Dakotas, the VBOC often collaborates with local SBDCs to host workshops and networking events, making them an excellent entry point for military-affiliated entrepreneurs looking to strengthen their business or recover from setbacks.

Building resilience requires a combination of operational planning, financial readiness, and relationship-building. Start by digitizing and securely storing critical records such as payroll, vendor contracts, leases, insurance documents, both offsite and in encrypted cloud storage. Develop a concise, one-page continuity plan that names backups for critical roles, lists emergency contacts, and establishes primary and secondary communication channels. Aim to build a financial reserve of 30 to 90 days’ worth of operating expenses, whether in cash or available credit. Review your insurance coverage to ensure you understand your policy’s exclusions and consider adding riders for high-risk perils in your area.

Workforce continuity is equally important. Crosstrain staff so at least two people can handle each critical function. Maintain a list of reliable temporary staffing providers and stay in touch with local military liaison offices if you employ reservists. Strengthen relationships with vendors, securing written lead times and backup suppliers for your most essential inputs. Prepare clear, templated messages for customers in the event of closures, delays, or service changes to ensure quick and transparent communication preserves trust during disruptions.

When disaster is officially declared, the SBA opens specific application windows for EIDL loans. The process includes an online application, an inspection to confirm losses, and repayment terms designed for long-term recovery. While not immediate relief, these funds can bridge payroll and operating costs while you pursue insurance claims or grants. Your SBDC counselor can help you prepare the necessary documents, such as a schedule of liabilities and ownership information in advance, making it easier to submit a complete application quickly.

Cybersecurity is another critical area of preparedness, especially as small businesses increasingly become targets of ransomware and phishing. Back up your systems daily, test your ability to restore them, enable multi-factor authentication for key accounts, and limit administrative privileges. A simple cyber incident response plan, identifying who to contact, how to isolate affected systems, and what to communicate to customers, can significantly reduce downtime and reputational damage. Many SBDCs now offer cybersecurity training as part of their consulting services, often using free federal resources.

For retailers and restaurateurs, preparedness often means being ready to pivot. Converting part of your operation to online ordering or local delivery can maintain revenue during disruptions. Negotiating rent relief or deferrals with landlords, and securing a short-term line of credit for payroll, can buy crucial time. Local chambers of commerce and SBDCs have helped many food-service businesses craft “pivot plans” that keep staff engaged and customers connected during downturns.

Ultimately, the strongest predictor of business survival in a crisis is not a perfect plan, it’s the relationships you’ve built. Lenders who know you personally are more likely to work with you. Vendors who value reliability may prioritize your orders in a shortage. Local agencies may bend the rules for business owners who have been proactive and communicative. Meeting your lender and your SBDC counselor before you need them, attending a SCORE workshop, or joining a VBOC seminar can reduce the friction of urgent decision-making when the unexpected happens.

Resilience doesn’t come from one action or one program, it’s cumulative. It’s the sum of realistic forecasting, diversified revenue, trained staff, organized records, and trusted advisors. For many small businesses across North and South Dakota, the path forward starts with a 90-day commitment to three things: know your cash, know your critical people, and know where to go for help. Federal programs, from SBA loan options to Ready. gov planning templates to veteran training initiatives, exist to be used, not just read about. Choosing one action to take this week is the simplest way to start building the habits that keep Main Street businesses strong for the long haul.

VBOC of the Dakotas