Disaster assistance programs help small business owners return to operation after a climate disaster. These programs provide funds that act as a stopgap or supplement to disaster insurance, which often has a slow and complicated claims process and often does not fully cover damages in the extreme weather events.

Disaster assistance programs provide business owners with timely payouts through private, state, or federal grants or loans. These programs can provide quick access to crucial funds and reduce overhead costs associated with disaster recovery. This is especially helpful for BIPOC- and immigrant-owned small businesses that may not have the resources or savings to wait for business or disaster insurance payouts, be underinsured, or not have insurance at all.

However, because of the high cost of disaster insurance and the lack of subsidized disaster insurance programs for small businesses, disaster assistance program funds are in high demand. Depending on how well they are funded, programs may be unable to serve all small businesses who need help.