PREPARE Act of 2023

The PREPARE Act of 2023 creates a new pre-disaster mitigation loan program for small businesses under the Small Business Administration (SBA). It allows businesses to borrow up to $500,000 to fund physical improvements that reduce future disaster damage, such as reinforcing buildings or protecting equipment. The SBA must conduct outreach to small businesses - especially in economically depressed areas - and provide technical assistance to help them apply for these loans. The bill authorizes $25 million annually from 2024 through 2028 for the program and requires annual reports tracking loan usage, geographic distribution, and cost savings avoided through mitigation efforts.