Stevens Advocates for Small Businesses and Families Who Have Experienced Thousands in Losses Due to Power Outages

FARMINGTON HILLS, MI – Today, U.S. Representatives Haley Stevens (D-MI) hosted a roundtable with business and community leaders to discuss the impact of power outages on businesses’ and families’ bottom lines and to discuss her new bill, the Prolonged Power Outage Relief Act.

This new legislation, introduced in the U.S. House of Representatives yesterday, would allow individuals and small businesses to qualify for a variety of low-interest loans to recoup losses from a power outage. Specifically, it would allow the declaration of a disaster when at least 25 homes and/or businesses in a community lose power for more than 48 hours thus making those affected eligible for assistance. 

The Prolonged Power Outage Relief Act was endorsed by the Detroit Regional Chamber and the Michigan Public Service Commission.

During the roundtable, Rep. Stevens and municipal and business leaders discussed the impact of power outages, this new bill, and other ways to address the increase in prolonged power outages. 

“Michiganders lose a lot when they lose power – families lose food in the fridge, companies lose perishable products, equipment, and business,” said Rep. Haley Stevens (D-MI). “That’s why I introduced the Prolonged Power Outage Relief Act, because families and small businesses shouldn’t have to shoulder the cost of power outages alone. I was glad to hear the stories of the business and municipal leaders at today’s roundtable and am taking our ideas back to Washington so we can continue to expand the tools in our toolbox to address this growing problem.” 

“Prolonged power outages are not just inconveniences – they represent a significant threat to Michigan's, and the country’s, economy,” said Brad Williams, Vice President of Government Relations for the Chamber. “Every hour of downtime for a manufacturing facility translates to lost production, lost wages, and lost tax revenue. By prioritizing grid modernization and emergency response plans, we can mitigate these risks and ensure that Michigan's economic engine continues to hum.”

“Michigan’s energy grid reliability has been challenged by increasingly frequent severe weather induced by climate change, and the state needs every available resilience measure at its disposal to ensure an electric grid that meets customers’ expectations for dependable service,” said Michigan Public Service Commission Chair Dan Scripps. “We appreciate Congresswoman Stevens’ efforts to make energy resilience solutions more broadly available as Michigan and the nation tackle electric reliability amid a changing climate.”

“I commend Congresswoman Stevens for introducing this crucial bill,” said Farmington Hills Mayor, Theresa Rich. “This legislation empowers mayors to declare a disaster when power outages extend beyond 48 hours, providing a lifeline to residents and businesses through low-interest loans. These financial resources can be instrumental in sustaining a business and assisting community members in times of adversity.”

“Power outages often lead to significant losses of product, equipment, and revenue,” said Rifino Valentine, President & Founder, Valentine Distilling Co. “I really appreciate Rep. Stevens' attention to this issue by introducing solutions that can really help a small manufacturer like us during challenging times.'”

Background:

The Prolonged Power Outage Relief Act amends the Small Business Act to recognize prolonged power outages as a basis for declaring a disaster. In the event of such a declaration, the legislation provides access to various forms of assistance which include:

• Real Property Disaster Loans: Households can receive up to $500,000 to repair or restore their primary residence to its pre-disaster condition.
• Personal Property Disaster Loans: Homeowners and renters in a declared disaster area are eligible for up to $100,000 to repair or replace personal property, including furniture, appliances, clothing, and automobiles damaged or destroyed in the disaster.
• Physical Disaster Business Loans: Businesses of all sizes, including nonprofits, can access up to $2 million to repair or replace uninsured or underinsured disaster damages to physical property. This covers machinery, equipment, fixtures, inventory, and leasehold improvements.
• Economic Injury Disaster Loans (EIDLs): Small businesses, nonprofit organizations, and small agricultural cooperatives located in a declared disaster area can apply for EIDLs. These loans, amounting to up to $2 million, are aimed at helping entities that have suffered substantial economic injury, are unable to secure credit elsewhere and meet SBA size regulations for being defined as small. EIDL proceeds, limited to working capital, can be used to fulfill financial obligations and operating expenses that would have been met under normal circumstances, allowing the business or organization to recover from the specific economic injury and resume normal operations.

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