In Wake of Severe Storms Pummeling Michigan, Stevens Introduces Bill to Help Families and Small Businesses Weather Prolonged Power Outages

Washington, D.C. – Last week, U.S. Representative Haley Stevens (D-MI) introduced the Prolonged Power Outage Relief Act to help families, communities, and small businesses weather the financial fall out of prolonged power outages.

The bill amends the Small Business Act to include prolonged power outages as a basis to declare a federal disaster if more than 25 homes or businesses in a close area are without power for more than 48 hours. Such a declaration would allow those affected to apply for low-interest loans to repair or replace appliances, machinery, or equipment or purchase generators or other alternative power sources to mitigate the impact of future power outages. 

“After ice storms and tornadoes swept our state earlier this month, it is more important than ever to make sure Michiganders have the support they need to continue to care for their families,” said Rep. Haley Stevens (D-MI). “That’s why I introduced the Prolonged Power Outage Relief Act, because at a time where prices are on the rise, families and small businesses shouldn’t have to shoulder the cost of power outages alone.  Keeping businesses open and families fed is key to ensuring that storms don’t cause long-term financial hardship for Michiganders, and I’m proud to reintroduce this legislation to get the job done.”

“The historic ice storm in northern Michigan, coupled with 10 confirmed tornadoes in the southern and central Lower Peninsula, underscore how the state’s energy customers face growing challenges from increasingly frequent and severe weather brought about by climate change,” said Michigan Public Service Commission Chair Dan Scripps. “We appreciate Congresswoman Stevens’ efforts to ensure Michigan’s residential and business customers have more resources to help them recover and rebuild from the impact of these storms and power outages.”

“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.'”

“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.”

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.

Full text of the legislation can be found here. 

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