WNC Strong:
Helene Business
Recovery Fund

Hurricane Helene threatened to turn a natural disaster into a generational economic collapse for Western North Carolina's small business community. In response, Mountain BizWorks mobilized quickly, launching the WNC Strong: Helene Business Recovery Fund within 10 days of the storm. The results demonstrate what is possible when capital, community trust, and coordinated partnerships move at the speed of crisis.

Behind each of these numbers is a business owner, a family, and a community facing an uncertain future. On September 27, 2024, Hurricane Helene brought widespread devastation to Western North Carolina — a close-knit community with a vibrant, small business-driven economy. According to the North Carolina Department of Commerce, more than 99% of all businesses in North Carolina are small.

While North Carolina has experienced numerous natural disasters, particularly in coastal areas, Helene's impact was uniquely catastrophic. Heavy rain fell days before Helene made landfall. Then the storm brought a deluge of wind and rain, dropping more than 30 inches in some places over a short span of time. This, plus WNC's unique mountainous terrain, caused torrential flooding, landslides, and tree fall. The North Carolina Office of State Budget and Management reported $59.6 billion in damage and recovery needs — far exceeding the State's previous record of $17 billion from Hurricane Florence in 2018.

Mountain BizWorks' 2025 Local Business Impact Survey gathered insights from over 700 small business owners nine months into recovery. They reported a median loss of $95,000 and an average loss of $322,000 — damages that would wipe out more than six years' worth of annual profits for a typical WNC small business. The timing compounded the crisis: Helene struck at the onset of the region's busy fall tourism season, which many businesses rely on to carry them through a slow winter. Adding to the burden, many of those same businesses were still paying down COVID-19 disaster loans.

From Mountain BizWorks' COVID-19 experience and lessons gleaned from other large natural disasters, we knew small businesses would be at greatest risk of failure in the immediate aftermath of a storm. Following the precedent created to answer needs during the COVID-19 pandemic and other natural disasters, recovery loans would be the first tool to deploy.

With water levels already at moderate flood stage before Helene hit, Mountain BizWorks contacted the NC Rural Center and Golden LEAF Foundation for planning conversations. The NC Rural Center open-sourced its full disaster response program, including application, underwriting guide, and best practices — giving Mountain BizWorks the tools needed to move collaboratively to launch the first recovery tool in the region.

The WNC Strong: Helene Business Recovery Fund launched October 7, 2024, just 10 days after the storm, while many businesses were still without power, water, and internet. The Golden LEAF Foundation committed $7.5 million to seed the fund. This initial capital was repaid from prior disaster lending programs, showing how a response to one disaster can build preparedness for future events.

Within weeks, the funding pool was expanded to meet the extensive regional need with $50 million from the State of North Carolina (also via Golden LEAF Foundation), $3.5 million from Appalachian Regional Commission, and $125,000 in donor-advised funds from Abundance Capital.

The Helene Business Recovery Fund closed the gap between the initial disaster and when federal loans, insurance payouts, and other relief funds arrived, sometimes months after the storm. This was especially critical as the Small Business Administration had exhausted its disaster loan program in mid-October 2024, burdened by the needs of prior disasters. Mountain BizWorks received 678 requests totaling $44 million within the first 30 days of launching the Fund.

The Fund initially supported loans of up to $100,000 with one percent, interest-only terms for the first year. The low monthly cost allowed businesses to get back on their feet without the pressure of large monthly payments. These rapid-response loans were designed to serve as bridge financing to close critical gaps in the immediate aftermath of the storm.

These flexible-use loan proceeds could be used for a wide range of recovery needs: repairing physical storm damage to buildings and equipment, managing cash flow during periods of reduced or no revenue, restocking inventory that was damaged or lost, covering payroll to retain employees, paying rent and utilities during closure, and addressing other working capital needs essential to survival.

As recovery progressed, it became clear that only one year of low repayments wasn't enough time for all borrowers to regain their footing. In response, on October 23, 2025, the North Carolina General Assembly approved the expansion of these terms to include loan values of up to $150,000 and extended the one percent interest-only payment period for two years. Of the 852 total borrowers, 722 adjusted their loan terms and 139 increased their funding amount to take advantage of the enhanced flexibility and support continued recovery.

The impact of the WNC Strong: Helene Business Recovery Fund has been tremendous. Across 29 counties, $59,556,119 in financing reached 852 businesses, retaining 7,069 jobs that might otherwise have been lost to the disaster. Notably, 63% of loans served Historically Underutilized Businesses, directing $33.4 million to entrepreneurs who often face the greatest barriers in accessing traditional lending.

By responding with speed, flexibility, and deep community partnership, the region demonstrated that locally-driven recovery can prevent the generational economic decline that so often follows natural disasters. Yet even as these results reflect meaningful progress, recovery is far from complete; and the challenges ahead are no less urgent than those that came before.

The State of Recovery

In some areas, small businesses across Western North Carolina are steadily returning to business as usual. This is good news for tourism, manufacturing, and other industries. However, many hard-hit areas like Chimney Rock, Swannanoa, and Marshall still have a long way to go.

A return to normalcy did not offset the average loss of $322,000 reported by survey respondents, equivalent to six years of profits for a typical WNC small business. Now, with emergency relief funds depleted, businesses face new and compounding challenges without adequate support.

Capital Access Gaps

Even as recovery progresses, it is clear that significant challenges remain. The WNC Strong: Helene Business Recovery Fund closed in December after deploying $59.6 million. The Small Business Administration's physical damage and economic injury loans, also now closed, totaled more than $250 million in financing offered. Public and philanthropic grants have provided an estimated $65 million in relief. Each of these resources focused primarily on immediate needs, providing essential emergency working capital. Now, the needs are more nuanced.

Increased capital costs compound the challenge. Prior to Helene, long-standing low interest rates inspired confidence in many small business owners to invest in their businesses. Now, a surge in interest rates coincides with supply chain disruptions, decreased tourism, and community infrastructure still in disrepair. Some owners who started at 5% interest rates are now buckling under rates as high as 11%. At the same time, due to increased economic risk, banks are less inclined to offer refinancing without a substantial subordinate partner or loan guarantee.

Adding to these pressures, outside investors are coming to WNC Main Streets with cash offers to purchase commercial properties. These investor groups are raising rents, displacing longtime tenants, and outcompeting local would-be buyers during a particularly vulnerable time in the economy.

The Commercial Space Crisis

In recent years, access to affordable commercial space for new and growing WNC small businesses has been identified as an increasing challenge and a top priority. Hurricane Helene has turned this challenge into a crisis that threatens the long-term economic vitality of the region. Many commercial spaces were located in areas along waterways. The Asheville River Arts District, Woodfin, downtown Canton, and the Swannanoa River corridor are a few examples of districts where hundreds of small businesses have been displaced and thousands of square feet of already-scarce commercial space were devastated.

Hurricane Helene tested Western North Carolina's resilience in unprecedented ways. The response was swift and equally impactful: from the rapid deployment of the WNC Strong: Helene Business Recovery Fund to the collaborative networks that amplified its impact. It demonstrated what's possible when communities, government, and financial institutions unite around a common purpose: protecting the livelihoods that make our region thrive.

But the work is not finished. As businesses transition from survival to stability, the challenges evolve. Rising interest rates, depleted emergency funds, and a severe shortage of affordable commercial space threaten the progress made. Mountain BizWorks remains committed to serving as a financial first responder, community convener, and steadfast partner to Western North Carolina's small business community.

The lessons learned from Hurricane Helene will inform our region's continued recovery and strengthen the broader CDFI community's capacity to respond when disaster strikes. Most importantly, Western North Carolina's entrepreneurs have shown remarkable courage and determination. With continued support, flexible capital, and collaborative action, they will emerge stronger, more resilient, and ready to anchor the next chapter of Western North Carolina's economic story.