Natural disasters disrupt lives, destroy infrastructure, and leave communities grappling with recovery. In their aftermath, the limitations of national disaster response mechanisms, like FEMA and SBA Disaster Relief, become clear. While essential, these programs take time to mobilize, leaving communities with urgent needs. In these critical moments, mission-driven financial institutions like Partner Community Capital (PCAP), a CNote partner, step in to provide immediate support.
When Hurricane Helene struck Western North Carolina in late 2024, the damage was widespread. Rivers overflowed, flooding homes and businesses, and municipal water systems in Asheville were severely impacted, leaving residents without potable water for weeks. The disaster hit during peak autumn tourism season, compounding economic losses for a region heavily reliant on small businesses.
Amid the chaos, PCAP mobilized quickly to assist its borrowers and the communities they serve. With 112 loans to 85 borrowers in the region—36% of its portfolio—PCAP’s priority was clear: provide relief and help borrowers navigate recovery.
PCAP: A Mission-Driven Partner in Time of Crisis
Within 48 hours of the hurricane, PCAP offered two months of forbearance to all affected borrowers, providing breathing room as they assessed damage and sought next steps.
“We started by asking, ‘What do you need, and how can we help?’” said Spencer Blevins, a PCAP Business Lender based in Western NC. “The goal was to create stability for borrowers dealing with damaged homes, disrupted businesses, or both.”
PCAP staff contacted clients individually to assess needs, help them apply for grants, and navigate relief programs like SBA Emergency Disaster Loans, which faced delays. Recognizing the volume of information circulating, PCAP launched a microsite to consolidate critical resources, simplifying access to funding and support.
“Some businesses were fortunate to reopen quickly, but others faced catastrophic damage,” Spencer said.
Real Stories of Resilience: Borrower Examples
PCAP’s efforts laid the groundwork for recovery, but the resilience of its borrowers stood out most.
Mother Earth Food is a prime example. Within 24 hours of the hurricane, this Asheville-based business adapted its home delivery operation with help from partners like Smith Mill Works and Grassroots Aid Partnership. They maintained cold storage for fresh produce and essentials while partnering with local chefs, food trucks, and volunteers to provide hot meals to those in need.
“During the second week of October, we delivered over 1,000 meals daily,” said Andrea DuVall, Founder and CEO. “This experience underscored the importance of a resilient local food network.”
Mother Earth Food’s response, supported by PCAP, not only kept the business afloat but also provided vital resources to the community when they needed it most.
Collaborating for Community Recovery
Beyond individual borrowers, PCAP collaborated with other CDFIs and local organizations to coordinate a regional response. They joined the Western North Carolina Small Business Initiative, which provided grants to impacted businesses, and participated in weekly triage meetings to streamline recovery efforts.
The community spirit was evident everywhere. Breweries shared potable water before municipal systems were restored, and food hubs became centers for medical supplies and essential goods. Small businesses, despite their own challenges, rallied to support neighbors.
“We’ve seen incredible resilience,” shared Erika McGilley, Executive Vice President & Chief Lending Officer. “Neighbors clearing debris, businesses creating makeshift solutions—it’s inspiring.”
A Path Forward
As the winter season approached—a particularly tough time for mountain communities—PCAP focused on providing patient capital and flexible terms, ensuring businesses could survive until spring when recovery would gain momentum.
The Hurricane Helene natural disaster and subsequent recovery, still ongoing, is a clear showing of the vital role local, mission-driven financial institutions play during times of crisis. While national programs like FEMA are essential, they take time. Organizations like PCAP step into the gap, providing immediate, tangible support to stabilize communities and foster recovery.
