Rhode Island Secretary of Commerce Elizabeth Tanner found out about the closure of the Washington Bridge like a lot of other people.

“I found out when you found out,” she told a room of business owners and members of the East Bay Chamber of Commerce during a visit to Warren on Thursday Dec. 21. “My phone blew up when I was out walking my dog and I was like, ‘Oh, here we go.’”

Tanner’s stop in Warren at the Event Room at Cutler Mill was part of a tour to let local businesses know that the state had succeeded in getting a disaster declaration approved following the bridge closure. As a result, the Small Business Administration (SBA) has officially begun accepting applications for low-interest emergency loans to help cover the costs incurred from lost revenue as a result of the disruption caused by the closure.

According to an SBA press release, the declaration covers businesses from Providence, Bristol and Kent Counties in Rhode Island, Windham County in Connecticut, and Bristol, Norfolk and Worcester Counties in Massachusetts, and applies to small businesses, small agricultural cooperatives, small aquaculture businesses and private, nonprofit organizations.

The loans are set at 4% interest for businesses and 2.375% for nonprofits, with repayment terms available for an up to 30-year schedule. The maximum amount that can be borrowed through these loans is $2 million. The release stated that loans cannot be utilized to refinance other long-term debts that exist for the business or nonprofit. Payments become due 12 months following the first disbursement of loan money.

The deadline for applying for a loan is Sept. 16, 2024.

Help hub available in East Providence
Tanner also informed the group that the state has opened a Business Recovery Center (BRC) at the Weaver Library in East Providence (41 Grove Ave., East Providence), to provide guidance to small businesses from Rhode Island, Massachusetts, and Connecticut who have been affected.

Those hours are 9-6 on Monday through Thursday; 9-5 on Fridays; and 10-2 on Saturdays (holiday hours differ). Representatives will be available at the center to answer questions and help applicants with the necessary forms to fill out.

The amount of money that can be acquired through a loan will be determined on a case-by-case basis by the SBA after reviewing paperwork submitted by the business or organization that chronicles how much money they estimated to have lost as a result of the closure.

Applicants may apply online and receive additional disaster assistance information at SBA.gov/disaster . Applicants may also call SBA’s Customer Service Center at (800) 659-2955 or email disastercustomerservice@sba.gov for more information on SBA disaster assistance. For people who are deaf, hard of hearing, or have a speech disability, please dial 7-1-1 to access telecommunications relay services.

Additional resources to be aware of
Commerce Director of Public Affairs Matthew Touchette also provided more information regarding businesses who have current loans stemming from the COVID-19 pandemic.

“Commerce and the SBA worked together to provide borrowers who also have COVID-19 EIDL loans with an option of making reduced payments on those loans to help ease the financial burden,” Touchette said. “We have also asked our federal colleagues at the SBA to work with us on business resiliency training to ensure everyone is better equipped to handle an event such as this, should something like it occur again.”

The Hardship Accommodation Plan:
SBA is offering a Hardship Accommodation Plan for borrowers experiencing short-term financial challenges. Borrowers eligible for this plan may make reduced payments for a six-month period, with the option to renew after the plan concludes. Interest will continue to accrue, which may increase (or create) a balloon payment due at the end of the loan term.

Terms:

• Borrowers are required to pay a fixed percentage of their monthly payment amount. Payment reduction will vary based on past enrollment status.
• During the Hardship Accommodation period, borrowers can voluntarily make larger payments.
• The regular monthly payment amount will resume and be required after the six-month Hardship Accommodation period ends. Borrowers may be able to renew the Hardship Accommodation Plan, if necessary. The terms may vary for renewals.

Eligibility & Enrollment:
Borrowers are eligible to enroll in the Hardship Accommodation Plan beginning 60 calendar days before their first payment due date.

If your loan amount is less than or equal to $200,000:

• First-time enrollment: To enroll in the Hardship Accommodation plan, create an account or log in to the MySBA Loan Portal [lending.sba.gov]. Within the portal, click “Loan Summaries” in the toolbar. On the Loan Summary page, look for “Hardship Accommodation Plan” in the bottom right corner. Click “Learn more and enroll.”
• Renewals: You may renew the Hardship Accommodation Plan one time through the MySBA Loan Portal [lending.sba.gov]. If you need renew more than once, please contact COVID-19 EIDL customer service [sba.gov] (include Hardship Accommodation Plan in the email subject line), or send a message through the MySBA Loan Portal. You will be contacted by a loan specialist regarding requirements.

If your loan amount exceeds $200,000:

• First-time enrollment and renewals: Please contact COVID-19 EIDL customer service [sba.gov] (include Hardship Accommodation Plan in the email subject line) or send a message through the MySBA Loan Portal. You will be contacted by a loan specialist regarding requirements.