Us Congress House Bill HB7071

Us Congress 2023-2024 Regular Session

• Introduced: 1/22/24
• Refer: 1/22/24

Caption

To amend section 7(b) of the Small Business Act to make disaster loans available for damages caused by prolonged power outages, and for other purposes.

Impact

The implications of HB7071 are significant, as it recognizes prolonged power outages as a disaster, allowing affected small businesses to apply for loans to recover from financial losses. This bill aligns with contemporary challenges faced by business owners, particularly in regions prone to extreme weather events that disrupt electrical supply. The ability to fund repairs, purchase energy resilience systems such as generators or solar panels, and replenish supply stocks like food and beverages could provide essential support to businesses during critical recovery phases.

Summary

House Bill 7071 aims to amend section 7(b) of the Small Business Act, specifically to extend the availability of disaster loans to small businesses affected by prolonged power outages. The bill defines a prolonged power outage as a loss of electrical power affecting a minimum of 25 homes or business concerns, which sustain uninsured losses of 40% or greater of their property value. This new classification broadens the scope of what constitutes a disaster under which small businesses can seek financial assistance, thus ensuring that businesses suffering from extended outages due to causes like natural disasters can access crucial funding.

Contention

Despite its intention to support small businesses, there may be points of contention surrounding the bill. Critics may raise concerns about the funding and administrative capacity of the Small Business Administration in handling increased loan requests and the definition criteria for prolonged outages. There may also be debates on whether the bill adequately addresses the root causes of energy resiliency or if financial assistance is simply a stopgap measure. Ensuring that energy sources are reliable and that businesses have the means to become more resilient to future outages could be focal points for discussion.