REPRESENTATIVES MORELLE, STAUBER INTRODUCE LEGISLATION TO PROTECT SMALL BUSINESSES FROM FUTURE IMPACTS OF FLOODING

(Washington, D.C.) -Today, Congressmen Joe Morelle (D, NY-25) and Pete Stauber (R, MN-8) announced they have introduced legislation to help protect small businesses from the devastating impacts of flooding. The bipartisan Providing Resources for Emergency Preparedness and Resilient Enterprises (PREPARE) Act would create a Small Business Administration (SBA) Pre-Disaster Mitigation Loan Program to help small businesses take preventative action to bolster their infrastructure in preparation for future flooding events.

“Our community knows all too well how devastating flooding can be to local businesses—we’ve all seen a favorite restaurant or shop close its doors due to damage caused by flooding,” saidCongressman Joe Morelle. “It’s critical we take preventative action to prepare for future flooding and protect our small businesses from additional economic hardship. Strong mitigation efforts are the key to our resiliency, and that’s why I’m so proud to introduce this much-needed legislation to help strengthen coastal communities.”

“As a small business owner, I understand businesses often face obstacles that are outside of their control,” said Congressman Pete Stauber. “It is imperative that business owners have opportunities to take preemptive steps to protect their businesses from unforeseen circumstances, such as flooding, that could cause further harm. That's why I am proud to help lead the PREPARE Act, bipartisan legislation that will help businesses strengthen their infrastructure and guarantee their resiliency for years to come.”

"As communities in upstate New York and beyond brace for springtime floods and heavy rainfall, we must make every tool available to protect lives and livelihoods from these threats," said Melissa Roberts, President & Executive Director, American Flood Coalition Action. "I commend Representatives Morelle and Stauber for their bipartisan leadership to support small businesses by reintroducing the Providing Resources for Emergency Preparedness and Resilient Enterprises (PREPARE) Act. This common sense proposal would empower entrepreneurs to take proactive and cost-effective measures to protect their businesses before floods strike. As increasingly frequent and severe flooding threatens communities across the U.S., this bill would ensure more American businesses can keep their doors open, create jobs, and fuel strong local economies."

Natural disasters are increasing in frequency, costing the United States $800 billion in the last decade alone, and the increased occurrence of significant flooding events is causing unprecedented damage to local small businesses. Federal Emergency Management Agency (FEMA) statistics show that about half (40-60%) of small businesses never reopen following a disaster, and every $1 spent on mitigation saves taxpayers an average of $6. The PREPAREAct would help small businesses like lakeside restaurants, marinas, and boat yards take preventative action to strengthen mitigation efforts to lessen the impact of future flooding events.

The legislation would authorize a pre-disaster mitigation loan pilot program, made available through the SBA, to provide low-interest, fixed rate loans to small businesses to implement mitigation measures to protect against disaster related damages. Loans can be up to $500,000 and will be made available to qualifying small businesses.

For more information on the PREPARE Act, read the full text of the bill here. Senators Rubio (R-FL) and King (I-ME) introduced a similar bill in the Senate.

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