PREPARE Act

The PREPARE Act establishes a new pre-disaster mitigation loan program for small businesses through the Small Business Administration (SBA). It authorizes $25 million annually from 2024 to 2028 to provide loans of up to $500,000 per business, enabling small businesses to fund projects that protect their property and operations from disaster damage (e.g., flood barriers or structural reinforcements). The SBA must conduct targeted outreach to businesses in economically distressed areas, offer technical assistance, and require borrowers to maintain insurance during loan terms. Annual reports will track program outcomes, including project types, cost savings avoided, and regional impacts, to evaluate effectiveness.