PROVIDENCE – Rhode Island small businesses and nonprofits struggling to submit applications for a federal payroll relief program have a new, dedicated lender and funding to meet their needs.
Gov. Gina M. Raimondo in a conference call on Monday announced a partnership with Goldman Sachs, R.I. Commerce Corp. and the Community Reinvestment Fund that will provide $10 million in forgivable loans to small businesses and nonprofits for payroll and other operating expenses. The eligibility and terms of the low-interest loans, capped at $250,000 per applicant, mirror those offered by the U.S. Small Administration through its Paycheck Protection Program.
Facing the Holidays with a Cancer Diagnosis
The holidays are often painted as a time of joy, tradition, and togetherness. But for…
Learn More
However, these loans, which will be made via the Community Reinvestment Fund, a national community development financial institution and SBA lender, target small businesses and nonprofits that have not been able to submit PPP loan applications through other lenders. Since the federal program debuted on April 3, many national and local lenders have prioritized applications from existing clients over those without a deposit account or line of credit.
“There is a real concern that what is happening is very sophisticated existing businesses that have a strong relationship with a financial institution are really being advantaged by this program,” said U.S. Rep. David Cicilline, D-RI, who participated in the call.
Jose Castellanos, a graduate of the Goldman Sachs 10,000 Small Businesses Program at the Community College of Rhode Island, echoed the problems posed for local business owners like his own, which need immediate assistance to stay afloat.
Under the terms of the SBA program, a majority of the forgivable loan must be used to rehire or continue paying employees for an eight-week period, though a small portion can be used for mortgage payments, overhead costs and other expenses.
Those who have already submitted PPP loan applications through another lenders are not eligible.
Applications are open on Commerce RI’s website.
Nancy Lavin is a PBN staff writer. You may reach her at LAvin@PBN.com.
