U.S. Reps. Joe Morelle (D-NY-25), Jack Bergman (R-MI-01), Sharice Davids (D-KY-03), Pete Stauber (R-MN-08) and Julia Brownley (D-CA-26) introduced the Providing Resources for Emergency Preparedness and Resilient Enterprises (PREPARE) Act, landmark bipartisan legislation that would give small businesses the opportunity to access much needed capital to invest in disaster resilient infrastructure — a top priority for the Marine Retailers Association of the Americas. This bill would allow the Small Business Administration to make low-interest, fixed rate loans of up to $500,000 to small businesses to invest in their properties to protect their facilities, real estate and contents from natural disasters.
“According to the National Oceanic and Atmospheric Administration, 2020 was the sixth consecutive year (2015-2020) in which 10 or more billion-dollar weather and climate disaster events have impacted the United States,” said Marine Retailers Association of the Americas government relations manager Chad Tokowicz. “This increase has a direct impact on small businesses throughout our nation which help drive economic recovery and now, more than ever, it is imperative they are a equipped to protect themselves from the existential threat that disasters pose. The PREPARE Act will allow small businesses to make investments in resilient infrastructure to assure they can weather natural disasters and continue to fuel job growth and prosperity in communities across the nation. We hope this sees swift consideration by the House, and are thankful for the leadership of Representatives Joe Morelle, Jack Bergman, Sharice Davids, Pete Stauber, and Julia Brownley on this critical issue.”
This will preserve small business job gains in communities that depend on them and prevent against the existential threat of permanent business closure. According to FEMA, roughly 40-60 percent of small businesses never reopen following a disaster.
“Our community knows all too well how devastating flooding can be to local businesses—many of which are already struggling with the severe financial impacts of COVID-19,” said Congressman Joe Morelle. “It’s more important now than ever that 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.”
“Kansas is one of the most vulnerable states to flooding, and it’s only gotten worse in recent years. My district has seen both the damage that flash floods can inflict and the benefits that preventative measures can bring,” said Rep. Sharice Davids. “Resilient infrastructure can mean the difference between staying open and going under. I’m proud to support the PREPARE Act in providing funds for Kansas’ small businesses to plan for and mitigate the impacts of disaster.”
“As a small business owner, I understand businesses often face obstacles that are outside of their control,” said Congressman Pete Stauber. “While small businesses work to recover from the impact of a year of lockdowns, it is imperative that we take preemptive steps to protect them from additional obstacles 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.”
“The PREPARE Act will provide a key mechanism to small businesses, like marinas, boatyards, and other recreation businesses, so they can upgrade their infrastructure and increase resiliency to natural disasters, said Eric Kretsch, U.S. Legislative Manager, Association of Marina Industries. “Thank you to Representatives Morelle, Bergman, Stauber, and Davids for their leadership on this critical issue.”
“Small, family-owned recreational boating businesses are among the most susceptible to the devastation of erosion, rising water levels and many additional effects of climate change,” said National Marine Manufacturers Association’s director of government relations, Callie Hoyt. “Authorizing this Small Business Administration’s Pre-Disaster Mitigation Loan program would make these businesses and communities better prepared to weather the increasing number of natural disasters and we applaud Representatives Joe Morelle (D-NY-25), Jack Bergman (R-MI-01), Sharice Davids (D-KS-03), Pete Stauber (R-MN-08), and Julie Brownley (D-CA-26) for their leadership on this critical issue.”
This program would be the only SBA program focused solely on small business disaster prevention, and would complement rebuilding efforts through the government agency’s disaster loan programs. Research shows that every $1 the government spends on disaster mitigation, such as improving existing infrastructure or elevating homes and businesses, saves taxpayers an average of $6.
A study by the MRAA and AMI found that marine business need significant funding to protect from flooding, requiring an average of $260,000 to invest in projects like elevating buildings, bulkheads, constructing flood barriers or levees, dry and wet floodproofing, yard regrading, and sewer back up protections. This is an issue that transcends industries where all small businesses across the country face similar needs to mitigate damages caused by an increase in frequency and severity of natural disasters, costing the U.S. over $800 Billion in the last decade.
About the Marine Retailers Association of the Americas
At the Marine Retailers Association of the Americas, we believe that for the marine industry to thrive, the retail organizations that interact with the boaters in their community must thrive. With that in mind, MRAA works to create a strong and healthy boating industry by uniting those retailers, providing them with opportunities for improvement and growth, and representing them with a powerful voice. For more information, contact us at 763-315-8043.
