HB2897 would amend the Small Business Act to treat certain prolonged power outages as a qualifying “disaster” for purposes of Small Business Administration disaster loans. Under the bill, affected borrowers could seek disaster loan assistance when a qualifying outage causes specified levels of damage or when power is lost for at least 48 hours in a defined area. The measure is aimed at helping small businesses and other eligible recipients recover from extended electrical disruptions that can cause property damage, spoilage, and business interruption.
The bill also expands how disaster loan proceeds may be used in outage-related cases. In addition to existing allowable uses, borrowers could use funds to purchase energy resilience systems such as generators, solar panels, wind turbines, microgrids, fuel cells, batteries, and other electrical generation or storage technologies approved by the SBA Administrator. Borrowers could also use loan proceeds to replace food and drink that were lost, destroyed, or made unfit for consumption because of the outage. The bill defines “prolonged power outage” with specific thresholds tied to the number of affected homes or businesses and, in one case, the duration of the outage.
If enacted, the bill would amend federal small business disaster loan law, specifically Section 7(b) of the Small Business Act, by adding prolonged power outages to the statutory definition of disaster and by creating new authorized uses for disaster loan funds. It would affect the Small Business Administration’s loan administration rules and expand eligibility for disaster assistance in states, territories, and possessions when outages meet the bill’s criteria. The bill does not create a new program, but rather broadens an existing federal loan authority.
The available legislative context shows no recorded committee debate or votes, so there is no documented public sentiment from hearings or floor action. Based on the bill’s text, the measure appears generally supportive of small business resilience and recovery, with a practical focus on emergency preparedness and post-outage restoration. Because there is no transcript or vote history, there is also no clear evidence of opposition or support from specific lawmakers or stakeholders in the provided materials.
Potential points of contention are likely to center on the scope of eligibility and the cost or administrative burden of expanding disaster loan coverage to power outages. Questions may arise over whether the 25-structure and 48-hour thresholds are too broad or too narrow, how the SBA would verify outage-related losses, and whether allowing loans for resilience upgrades could blur the line between disaster recovery and infrastructure investment. The bill also may prompt discussion about federal involvement in utility-related disruptions and whether businesses should use disaster aid to finance backup power systems.
HB2897 would amend 15 U.S.C. 636(b) in the Small Business Act to include prolonged power outages within the definition of a disaster for SBA disaster loan purposes. It would authorize loan use for energy resilience systems and replacement of spoiled food and drink, thereby expanding both eligibility and permissible uses of federal disaster assistance for small businesses and other eligible borrowers affected by qualifying outages.
No committee transcript or vote history is provided, so there is no recorded legislative sentiment to summarize. The bill’s text suggests a generally pro-recovery, pro-resilience approach intended to help affected businesses and households recover from extended outages, but the provided materials do not show formal support or opposition from members.
The main likely points of contention are the bill’s eligibility thresholds, the breadth of the new disaster definition, and the expanded use of loan proceeds for backup and resilience technologies. Critics could argue that the measure broadens federal disaster aid too far or creates administrative complexity, while supporters would likely emphasize the need to help small businesses recover from increasingly disruptive power outages and to encourage preparedness investments.