Natural disasters strike without warning, leaving a trail of destruction in their wake. In the United States, the frequency and intensity of natural disasters have been steadily increasing, affecting millions of individuals and communities each year. These events disproportionately impact underserved communities, as they often lack the resources and financial stability to prepare for and recover from disasters (source: National Low Income Housing Coalition). Many of these individuals are already strapped for cash and face significant challenges in accessing loans and other forms of financial assistance.
Learn how CNote’s Disaster Resilience and Recovery Program helps Community Banks access capital to help local communities impacted by natural disasters.
The Underserved and the Impact of Natural Disasters
Statistics show that a considerable portion of the US population is affected by natural disasters annually, and the occurrences of these events are increasing each year. A significant number of those affected by natural disasters reside in underserved communities.
“Nationally, 20.6% of people were found to be highly vulnerable to disasters in 2022. But in counties where income inequality was at or above the national average, 23.4% were highly vulnerable. In counties with income inequality below the national average, 19.2% of residents were deemed highly vulnerable.” (source: Census)
“19% of adults with a family income below $25,000 reported any disaster-related hardship compared with only 9% of adults with a family income of $100,000 or more. (source: FedCommunities)”
These communities often lack access to traditional banking services and are more likely to be unbanked or underbanked. This financial exclusion makes them particularly vulnerable during times of crisis, as they may not have the financial means to build a savings account or access to credit to cope with the immediate and long-term effects of a disaster; building a bigger wealth gap as time moves on.
Community Banking’s Crucial Role in Disaster Recovery
Community banks play a vital role in supporting underserved communities during and after disasters (source: UBBS). These institutions are deeply rooted in the communities they serve and understand the unique needs and challenges faced by their customers. In times of crisis, community banks can provide essential financial services, such as emergency loans, payment deferrals, and financial counselling, to help individuals and businesses get back on their feet. Additionally, community banks can partner with local organizations and government agencies to provide targeted assistance and support to those most in need.
CNote’s Disaster Resilience and Recovery Program
CNote recognizes the critical role that community banks play in disaster recovery and has developed a Disaster Resilience and Recovery Program to support these institutions and the communities they serve. The program aims to provide community banks with capital they need to respond effectively to disasters and support the long-term recovery of their communities.
How CNote’s Community Finance Partners Make a Difference
CNote’s community finance partners help by:
- Increased Access to Capital: Community banks provide emergency loans and other financial assistance to individuals and businesses in their communities
- Targeted Support: Community banks identify and address the specific needs of underserved communities in the aftermath of a disaster.
- Long-Term Recovery: Community banks provide underserved communities with the resources they need to rebuild and strengthen their local economies to help reduce the impact of future disasters.
Learn more about CNote’s Disaster Resilience and Recovery Program here.
CNote’s Disaster Resilience and Recovery Program is part of the CNote Impact Cash® Program.
Disclosure: This information should not be relied upon as research, investment or financial advice, or a recommendation regarding any products, strategies, or any security in particular. This material is strictly for illustrative, educational, or informational purposes and is subject to change. Investing involves risks, including possible loss of principal. The information does not purport to provide any legal, tax or accounting advice.
