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The Private Sector Contributes to Disaster Recovery Financing in a Variety of Ways

• The private sector contributes to disaster recovery financing in a variety of ways, including playing a key role in early response and long-term recovery, collaborating with the public sector in public–private partnerships, driving innovation and facilitating technology use, helping smaller communities manage influxes of funds, and supplementing federal disbursement processes.

Public–Private Partnerships Are Integral

• They can help to increase efficiency and effectiveness in disaster management. The partnerships between private actors and public-sector partners and recipients can alter the strategic focus of disaster management agencies.
• Public–private partnerships can reduce the burdens placed on government to provide certain goods and services immediately and over time, permitting the public sector to focus on other important strategic priorities.
• For-profit businesses can provide important templates informing the design of public-sector programs.

The Private Sector, Particularly Businesses, Is Key to Disaster Recovery

• The private sector is key to developing and implementing flexible financing models. It is also critical in ongoing resilience development.

The Private Sector Faces Challenges When It Comes to Financing

• These challenges arise from information availability, tracking the flow and timing of funds, and basic challenges in what financial supports can be provided, particularly by business. Further, explaining the value of business investment in recovery can be difficult.