WASHINGTON, D.C. — U.S. Senators Angus King (I-Maine) and Marco Rubio (R-Fla.) led a bipartisan group of their Senate colleagues in reintroducing the Providing Resources for Emergency Preparedness and Resilient Enterprises (PREPARE) Act. The legislation would reauthorize the Small Business Administration’s (SBA) Pre-Disaster Mitigation Pilot Program to give small businesses the opportunity to take out low-interest loans for the purpose of proactively implementing mitigation measures to protect their property from future disaster-related damage. The legislation is also cosponsored by Senator Susan Collins (R-Maine).

“Over the past several years, we’ve seen an increasing number of natural disasters that throw communities into chaos,” said Senator King. “In light of these growing challenges, it is absolutely essential that we help small businesses take steps to get ahead of these foreseeable threats and secure themselves in the event of potential natural disasters. This legislation incentivizes proactive efforts to prepare for emergencies, and allows these small businesses to weather whatever storm may come and ensure they can continue serving our communities. Our bipartisan legislation will only grow in importance as the effects of climate change continue to alter our nation; let’s pass it now, so small businesses in towns throughout Maine and across America can prepare for the next crisis.  It’s not a matter of ‘if’ but ‘when’ so let’s help our small businesses protect themselves.”

“Small businesses in America should be able to prepare for unplanned disasters,” said Senator Rubio. “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.” 

“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. “Our 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.”

“Helping the small businesses that make up Maine’s working waterfronts adapt and better prepare for future flooding or storms strengthens coastal communities and helps build resilience in a rapidly changing world. Storm surges are already flooding our island and coastal communities and recent estimates suggest that over the next 30 years, damage to coastal buildings in Maine alone will cumulatively cost over $17.5 Billion,” said Nick Battista, Senior Policy Officer at the Island Institute. “Investments in infrastructure and the small businesses our economy depends on are critical links between fishermen and others who make their living off the water and economic activity on the shore. Proactively supporting smart investments is a good investment.”

In addition to Senators King, Rubio, and Collins, the legislation is also supported by Senators Joni Ernst (R-Iowa), Ron Wyden (D-Ore.), Ben Cardin (D-Md.), and John Kennedy (R-La.). Congressman Joe Morelle (D-N.Y.) is leading companion legislation in the U.S. House of Representatives.

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 (FY2021 to FY2025) 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.