Linking Inclusive Finance with Inclusive Insurance in the United States Through Community Development Financial Institutions

Climate change is altering the frequency and magnitude of extreme weather events, disproportionately harming low- and moderate-income (LMI) communities. Small businesses and microenterprises play a critical economic role in these communities. These businesses are essential for disaster recovery, providing needed goods and services and reestablishing employment, and yet are themselves highly vulnerable to economic shocks, such as extreme weather events. In this report, we examine the financing challenges that small businesses in LMI communities face after a disaster, finding they have less access to resources, including post-disaster loans. Limited access to post-disaster financing can jeopardize business recovery.

EDF

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