H.R.2897 - To amend the Small Business Act to make disaster loans available for damages caused by prolonged power outages, and for other purposes. (119th Congress)
Summary
H.R.2897 amends the Small Business Act to include prolonged power outages as a qualifying event for disaster loans. This bill allows small businesses to use these loans to purchase energy resilience systems and replace spoiled food and drink due to power outages. The bill defines 'prolonged power outage' based on the number of affected homes or businesses and the duration of the outage.
Expected Effects
The bill will expand the SBA's disaster loan program to assist businesses affected by prolonged power outages. This will provide financial assistance for recovery and investment in resilient energy solutions. It will also help businesses recover losses from spoiled goods.
Potential Benefits
- Provides financial assistance to businesses impacted by prolonged power outages.
- Encourages investment in energy resilience systems, such as generators and solar panels.
- Helps businesses recover costs associated with spoiled food and drink.
- Offers a safety net for businesses in areas prone to power outages.
- Potentially reduces the economic impact of future power outages.
Potential Disadvantages
- May increase the demand on and strain the SBA's disaster loan program.
- Could create opportunities for fraud or misuse of loan funds.
- May disproportionately benefit businesses in certain geographic areas.
- The definition of 'prolonged power outage' may be too restrictive or too broad.
- Potential administrative burden for the SBA in processing and overseeing these new types of loans.
Constitutional Alignment
This bill appears to align with the Constitution, particularly the General Welfare Clause (Preamble). It aims to promote the economic well-being of small businesses, which contributes to the overall welfare of the nation. The bill falls under the legislative powers granted to Congress in Article I, Section 8, which includes the power to regulate commerce and provide for the general welfare.
Impact Assessment: Things You Care About ⓘ
This action has been evaluated across 19 key areas that matter to you. Scores range from 1 (highly disadvantageous) to 5 (highly beneficial).