In February 2021 a cold wave left much of Texas without power. For small businesses it was a lesson in how few days of closed doors the average account can survive.
Apply Now →In February 2021 a severe cold wave struck Texas and caused statewide power outages as well as food and water shortages. This page does not try to measure the event’s human or economic toll. It looks at one narrow question: what did a closure of several days do to the books of a small business, and what would a reserve have changed?
| Cost during a closure | Why it continues |
|---|---|
| Rent or mortgage | Due whether or not the doors are open |
| Salaried or committed payroll | Employees expect to be paid |
| Insurance premiums and loan payments | Fixed schedules |
| Spoiled perishables | Refrigeration fails with the power |
| Revenue | Zero |
Restaurants and grocers face the double hit of lost sales and lost stock. Service businesses lose the days and then have to fit the backlog into the following weeks, which means overtime rather than extra income.
Instead of choosing a round number, count fixed daily costs and decide how many closed days you want to survive.
For illustration only: a shop with $36,000 in monthly fixed costs spends about $1,200 a day. A ten-day closure is about $12,000 before spoiled stock. That reserve is likely larger than most small accounts hold in spare cash, which is exactly why it is worth writing down.
A reserve is not an answer to every event. A closure that stretches for weeks, or a storm that also damages the building, exceeds any sensible cash cushion. Insurance, the next topic in the cash plan, is what covers the physical loss, and claims take time to settle. The reserve’s job is to carry the business through the days before the claim pays or the doors reopen.
None of them requires a large budget. All of them require writing the plan down before the next event.
The expensive moment is often the restart: restocking spoiled inventory, paying a backlog of bills and bringing staff back on the schedule before sales recover. Texas Biz Funding considers $25,000 to $5,000,000, funded in as little as 24 hours after approval, with a five-minute application and a soft credit pull. Sole proprietors can apply.
A request sized to the restart, meaning inventory replacement and a few weeks of fixed costs, is easier to explain than a general need for cash.
A severe cold wave caused statewide power outages and food and water shortages.
Size it by days of fixed costs you want to cover, rather than by a generic number.
No. A reserve covers short-term cash needs; insurance covers insured physical loss, and claims take time.
Often the restart: replacing spoiled stock and paying a backlog of bills before sales recover.
Yes. Sole proprietors can apply.
Three months of business bank statements and a 5-minute application. FICO 500+ considered. $25,000 to $5,000,000, funded in as little as 24 hours.
Apply Now →It takes about two minutes and it will not affect your credit score.
No obligation • No impact to your credit score
