Bend, Don't Break: Small Business Financial Resilience after Hurricanes Harvey and Irma

JPMorgan Chase Institute, 2018

10 Pages Posted: 15 Mar 2018

See all articles by Diana Farrell

Diana Farrell

JP Morgan Chase & Co. - JP Morgan Chase Institute

Chris Wheat

JP Morgan Chase & Co. - JP Morgan Chase Institute

Date Written: February 28, 2018

Abstract

This report assesses the impact of hurricanes Harvey and Irma on small businesses’ cash inflows, outflows and balances. We leverage an anonymized sample of 40,000 firms who hold business banking deposit accounts with Chase to produce a daily view of small business cash flows from August 2017 to November 2017. We find that cash balances for the typical small business dropped by 7.4 percent after landfall in Houston and Miami, but recovered within two to three weeks. Moreover, inflows dropped by over 63 percent and recover in about a week, and outflows dropped by over 54 percent and recovered in two to three weeks. While balances and cash flows fell in all industries the week of landfall, construction, repair and maintenance firm balances increased the most in the weeks following landfall. These findings provide insight into the major financial disruption that small businesses experienced in the wake of Hurricanes Harvey and Irma, and the relative financial resilience of firms in the face of these impacts.

Keywords: Hurricane Harvey, Hurricane Irma, Natural Disasters, Small Business

Suggested Citation

Farrell, Diana and Wheat, Chris, Bend, Don't Break: Small Business Financial Resilience after Hurricanes Harvey and Irma (February 28, 2018). JPMorgan Chase Institute, 2018. Available at SSRN: https://ssrn.com/abstract=3138573 or http://dx.doi.org/10.2139/ssrn.3138573

Diana Farrell (Contact Author)

JP Morgan Chase & Co. - JP Morgan Chase Institute ( email )

New York, NY
United States

Chris Wheat

JP Morgan Chase & Co. - JP Morgan Chase Institute ( email )

New York, NY
United States

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