WASHINGTON, D.C. — U.S. Senators Angus King (I-Maine) and Marco Rubio (R-Fla.) today introduced the Providing Resources for Emergency Preparedness and Resilient Enterprises (PREPARE) Act to help small businesses prepare for future natural disasters. The legislation reauthorizes the Small Business Administration’s (SBA) Pre-Disaster Mitigation Pilot Program so that small businesses can use low-interest loans to protect their property from future disaster-related damage. The legislation is also cosponsored by Senator Susan Collins (R-Maine).

“From coastal floods to brutal ice storms, Maine has seen an increasing number of natural disasters that throw communities into chaos and wreak havoc on local economies,” said Senator King. “These crises are not going to stop and it’s absolutely essential that we help Main Street family businesses take the necessary steps to prepare. The most cost-effective approach is to take proactive action before disaster strikes. The PREPARE Act prevents costly repairs by helping vital small businesses make protective improvements to weather whatever storms may come. As the effects of climate change continue to alter our nation, this bipartisan effort will only become more necessary; let’s pass it now, so small Maine businesses can prepare for the next crisis."

“Small businesses in America should be able to prepare for unplanned disasters. The PREPARE Act would allow small businesses the opportunity to invest in mitigation before a disaster strikes, saving businesses and taxpayers money, as well as reducing potential property damage,” Rubio said.

“Small businesses are the engine of our economy, but one disaster could quickly wipe out a small business that a family spent years or even generations to build,” said Senator Collins. “This bipartisan bill would provide low-interest loans to allow small businesses to protect their property from future disasters, limiting potential damage and helping them to recover more quickly when catastrophes strike.”

“Thank you to Sen. Angus King and co-sponsors including Sen. Susan Collins for championing the PREPARE Act. Maine is a small business state, and this pro-active, forward-thinking legislation will help keep Maine’s economy strong in the face of foreseeable disasters,” said Julia Munsey, president and CEO, Maine State Chamber of Commerce.

Specifically, the PREPARE Act would:

·         Create an updated Pre-Disaster Mitigation Program for small business concerns to proactively take out a low-interest loan (up to $500,000) for the purpose of implementing mitigation measures to protect their property from future disaster related damage.

·         Authorize $25 million annually (FY2024 to FY2028) for the program

·         Task SBA with establishing and carrying out an advertising and outreach program related to pre-disaster mitigation.

·         Task SBA with issuing guidance to ensure borrowers purchase and maintain insurance coverage over the duration of the loan. 

·         Require SBA to conduct initial reporting and a program evaluation annually thereafter. 

·         Increase, from 20 to 30 percent, the limit on existing SBA Physical Business Disaster Loans a borrower may use towards post-disaster mitigation.

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