PROVIDENCE – Three of five state counties have been approved for low-interest loans through the U.S. Small Business Administration’s Economic Injury Disaster Loan program, Mark S. Hayward, SBA Rhode Island district director, said on Tuesday. He said the other two counties should also be approved soon.
Hayward said Washington, Kent and Providence counties have all been approved following Gov. Gina M. Raimondo’s Monday announcement she was requesting an economic-disaster declaration for the entire state. Newport and Bristol counties are awaiting approval.
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The SBA last week announced it would open up its Economic Injury Disaster Loan program to states and territories effected by the coronavirus through a formal request from the governor. Rhode Island was one of the first to apply, Raimondo said.
Under the terms of the program, businesses with fewer than 500 employees can apply for up to $2 million in a low-interest loan to cover their fixed-income operating costs. Current interest rates are set at 3.75% for for-profit companies and 2.75% for nonprofits with a 30-year term, though conditions may change.
Eligible businesses include those shut down amid growing concerns over COVID-19, as well as those still open but suffering from loss of revenue. Not every business automatically qualifies, though those found ineligible for SBA loans might be able to seek help through the SBA’s Small Business Development Center.
