In areas hardest hit by the Washington Bridge closure, many business owners have implored officials that it’s going to take more than a loan to recover from the infrastructure failure that has plagued surrounding communities since December.
The day after state officials shut down the bridge, Florence Voccola, owner of F. Bianco of Rhode Island Inc. boutique in Providence’s Wayland Square, recalls that Gov. Daniel J. McKee and staffers visited the gridlocked neighborhood, bringing with them applications for low-interest loans through the U.S. Small Business Administration.
“I just got through my COVID loan,” Voccola said at the time. And amid the economic turmoil of the bridge closure, she added, “I’m not going to put myself in debt [again] not knowing if I can pay it.”
Like other business owners, Voccola has hoped to see the state or federal governments offer grants. After months of waiting, it’s looking like it will become a reality.
The state budget for fiscal year 2025 includes a $2.6 million allocation dedicated to this relief, split between municipal governments in East Providence and Providence, and R.I. Commerce Corp.
Now, state and city leaders are coming forward with plans to use that funding – and this time, it involves grants.
East Providence, which received the largest portion of the allocation at $1.2 million, plans to dedicate $600,000 to award grants ranging from $500 to $2,500, said Mayor Roberto “Bob” L. DaSilva.
“This amount of money is not going to make any of those [impacted] businesses whole,” DaSilva said. But DaSilva said the program will have value for businesses “even if it helps you out a little bit” with expenses such as business fees or taxes.
When that grant program opens, businesses can apply through an R.I. Commerce online portal. The city and the agency are ironing out final details, including the portal’s opening date.
DaSilva had planned to use the remaining $600,000 to put gift cards to local businesses, totaling around $50 per person, into the hands of about 10,000 residents. He believed the strategy would pay off for businesses as well.
“It’s my belief that our residents suffered as much as our businesses,” DaSilva said in August, and the gift card program “gives them a little something, and hopefully encourages them to get out and support a business they never thought of supporting in the past.”
The plan was ultimately rejected, 4-1, by the East Providence City Council on Sept. 3.
Some council members who objected to the gift card plan said they wanted to see the city’s $1.2 million allocation go toward direct grants for businesses.
The DaSilva administration says it is still working on a plan that will use $600,000 to assist city residents and also provide a boost to local businesses. The details of those plans have not been disclosed yet.
Meanwhile, R.I. Commerce and the city of Providence are also preparing to award grants to impacted businesses.
While Providence will use its $800,000 for grants to Providence small businesses, R.I. Commerce will use its full allocation, totaling $600,000, to award grants to businesses outside of East Providence and Providence, said agency spokesperson Matthew Touchette.
The application portal for the Washington Bridge Small Business Grant Program officially opened on Sept. 10 and remains open until Sept. 24.
Applicants must have experienced a negative revenue impact – minimum $500 or 10% revenue loss – as a result of the Washington Bridge temporary closure and reconstruction.
The grant program promises to bring some relief to businesses such as F. Bianco, which, as an East Side business, is located in one of the areas hardest hit by the bridge closure. And as the state continues to seek a contractor who will rebuild the bridge, business owners such as Voccola feel that there’s still no end in sight to the infrastructure crisis.
Business has been tough for Voccola since the bridge problems began. “I’m hanging on by a thread,” she said. “I’m barely making ends meet.”
Laurie White, president of the Greater Providence Chamber of Commerce, says she’s heard from numerous businesses with similar concerns. And like Voccola, they’re not keen to take out more debt.
Shortly after the bridge’s emergency closure in December, the SBA announced a program offering low-interest loans of up to $2 million to businesses in the most hard-hit areas.
“[Businesses are] looking for grants, not loans,” White said. “A lot of the businesses have just recently finished paying off their COVID loans, so they don’t want to necessarily take on additional debt.”
Though the SBA’s loan program hasn’t sparked enthusiasm among small-business owners, it wasn’t shunned either. As of mid-August, the SBA received a total of 1,040 applications for the program, according to administration data, and has offered $20.25 million in loans to 390 businesses. Of those businesses, 325 took offers totaling $12.74 million in loans.
Additionally, 217 businesses applied but withdrew their applications at some point, while 228 were declined a loan. The SBA continues to process 205 loan applications, according to mid-August data requested by Providence Business News.
Applications for the SBA’s loan program will remain open at the administration’s online portal through Sept. 16.
