PREPARE Act Providing Resources for Emergency Preparedness And Resilient Enterprises Act
Impact
The PREPARE Act proposes an increase in the allowable amount of loans under the pre-disaster mitigation program to a maximum of $500,000 per borrower. Furthermore, it includes provisions for outreach and technical assistance to ensure that small business concerns are well-informed about the available loan opportunities, particularly in economically depressed areas. This approach not only supports the financial preparedness of small businesses but also aims to stimulate local economies by making them more resilient to disasters.
Summary
House Bill 2966, also known as the PREPARE Act, aims to reauthorize and limit the pre-disaster mitigation program of the Small Business Administration (SBA). The bill emphasizes the importance of preparing for emergencies by providing financial assistance to small businesses to protect their assets from disaster-related damages. Through this legislation, the SBA is tasked with establishing a structured pre-disaster mitigation program that facilitates access to loans for small business concerns, enhancing their resilience against potential disasters.
Contention
One of the notable points of contention surrounding HB 2966 is the balance between providing adequate support to small businesses and the potential oversight of the SBA regarding the management of funds and resources. Critics express concerns about ensuring that the outreach campaigns effectively reach those most in need, as there is a risk that smaller businesses may be overlooked in favor of larger entities that can easily navigate the application processes. The bill's reliance on adequate insurance coverage for borrowers to secure loans also prompts discussions about the insurance marketplace and its accessibility to small business owners.