PREPARE Act

To reauthorize and limit the pre-disaster mitigation program of the Small Business Administration, and for other purposes. 1. Short title This Act may be cited as the Providing Resources for Emergency Preparedness and Resilient Enterprises Act PREPARE Act 2. Pre-disaster mitigation program (a) In general Section 7(b) of the Small Business Act ( 15 U.S.C. 636(b) (1) in paragraph (1)(C)— (A) by striking during fiscal years 2000 through 2004, to establish a predisaster mitigation program to establish a pre-disaster mitigation program (B) by inserting in accordance with paragraph (16) and as the Administrator may (C) by striking to enable small businesses to small business concerns to enable such concerns (D) by striking in support of a formal to protect the commercial real estate, equipment, inventory, supplies, and materials of such concerns from damages related to disasters; (2) by inserting after paragraph (15) the following new paragraph: (16) Pre-disaster mitigation program loans (A) Annual loan cap The aggregate amount of loans made under the pre-disaster mitigation program under paragraph (1)(C) to a borrower may not exceed $500,000 in any 12-month period. (B) Outreach In carrying out the pre-disaster mitigation program under paragraph (1)(C), the Administrator shall— (i) conduct outreach campaigns to small business concerns regarding such program, including— (I) advertising to educate such concerns on the importance of disaster mitigation; and (II) campaigns to promote participation in such program by small business concerns located in economically depressed areas; (ii) provide instructions on how to participate in such program; and (iii) provide detailed information on the purposes for which funds from loans made under such program may be used. (C) Reservation of funds Not more than 4 percent of the funds made available to the Administrator to carry out the pre-disaster mitigation program under paragraph (1)(C) may be reserved by the Administrator for— (i) the administrative costs of such program; and (ii) the activities described in subparagraph (B). . (b) Authorization of appropriations Section 20(c) of the Small Business Act ( 15 U.S.C. 631 (c) Pre-Disaster mitigation program There is authorized to be appropriated for the purpose of carrying out the program established under section 7(b)(1)(C) the following amounts: (1) $25,000,000 for fiscal year 2021. (2) $25,000,000 for fiscal year 2022. (3) $25,000,000 for fiscal year 2023. (4) $25,000,000 for fiscal year 2024. (5) $25,000,000 for fiscal year 2025. . (c) Program evaluation Not later than January 31, 2025, the Administrator of the Small Business Administration shall submit to the Committee on Small Business and Entrepreneurship of the Senate and the Committee on Small Business of the House of Representatives a report on the pre-disaster mitigation program under section 7(b)(1)(C) of the Small Business Act ( 15 U.S.C. 636(b)(1)(C) (1) a list of the geographic areas in which recipients of loans under the program are located; (2) the number and dollar value of the loans made under the program; (3) the estimated aggregate value resulting from the use of mitigation techniques funded by loans made under the program, including— (A) the lost productivity and expenses that were avoided; and (B) the amount saved by the Federal Government; (4) the information required by paragraph (3) disaggregated by region, by State, and by industry; and (5) the estimated dollar value of loans that would have been made under section 7(b)(1)(A) of the Small Business Act ( 15 U.S.C. 636(b)(1)(A) (d) Applicability The amendments made by this Act shall apply only with respect to loans made under section 7(b)(1)(C) of the Small Business Act ( 15 U.S.C. 636(b)(1)(C)

Summary: Providing Resources for Emergency Preparedness and Resilient Enterprises Act or the PREPARE Act This bill permanently reauthorizes the pre-disaster mitigation loan program of the Small Business Administration (SBA). Under this program, the SBA may loan up to $500,000 in a 12-month period to small businesses so that such businesses may use mitigation techniques to protect their commercial real estate, equipment, inventory, supplies, and materials from damages related to disasters. The SBA must submit a report on the program that includes information such as (1) the geographic areas in which loan recipients are located, (2) the number and dollar value of loans made, and (3) the estimated aggregate value resulting from the use of funded mitigation techniques.