NEWPORT – Rhode Island has created a $1.45 million loan fund for small businesses directly affected by the gas outage on Aquidneck Island, Gov. Gina M. Raimondo announced Monday.
The fund received a $1 million contribution from the R.I. Commerce Corp.’s Small Business Loan Fund, $250,000 from BankNewport and $200,000 from the Rhode Island Foundation.
When Your Period Is Disrupting Your Life, It’s Time to Talk About It
For many women, heavy or irregular menstrual cycles are often brushed off as “normal”—something to…
Learn More
The fund will loan to “credible claims” with no minimum loan amount to a maximum of $25,000. The loan will be interest free for six months. Following the loan’s six-month interest-free period, a rate of 4 percent will take effect.
The governor encouraged all companies that believe they have been impacted to talk to Commerce officials. “We’re going to be flexible as possible,” Raimondo said. Commerce Secretary Stefan Pryor said that companies will need to show evidence of a loss due to the gas shutoff.
Pryor, who was credited with spearheading the emergency loan program, said that companies may use pending insurance claims related to the incident as collateral, as well as claims with National Grid, noting that such a move is unusual.
Commerce said that it will work to respond to claims within two business days. Forms will become available Tuesday morning.
The governor also said that the waiting period for unemployment insurance has been waived for workers impacted by the gas shutoff. Officials urged those who believe they have been impacted to apply for benefits.
“We’re moving as fast as we can to respond to the crisis,” she said, noting that officials did not want to wait for National Grid to take action.
Monday afternoon, National Grid announced that it will award $500,000 in need-based grants administered in partnership with Local Initiatives Support Corporation Rhode Island. The grant program will provide assistance to small businesses that have been impacted by the gas shutoff.
“Though we have spent millions in the community over the past week to provide food, shelter, and temporary heat for homeowners, we recognize our equal responsibility in supporting the business community that we are a dedicated member of,” stated Terry Sobolewski, chief customer office and senior vice president, National Grid, U.S. “We are now entering the economic restoration phase of this event and this grant program we launched today, in partnership with the LISC, will help impacted businesses reopen their doors and get back on their feet quickly and with efficiently.”
“This is a natural role for LISC Rhode Island to serve,” stated Jeanne Cola, executive director, LISC Rhode Island. “We’re happy to support our long-standing partner in finding solutions to get funds quickly to local businesses impacted by this outage.”
The governor also said that a “few hundred” customers remain without gas service as of Monday. National Grid said Monday afternoon that service has been restored to 97 percent of accounts in Newport and that nearly all customers in Middletown have had service restored.
R.I. Commerce Corp. will join the Newport County Chamber of Commerce in hosting an information session for gas outage-affected businesses on Tuesday from 10 a.m.-noon at the Newport Marriott.
Chris Bergenheim is the PBN web editor. Email him at Bergenheim@PBN.com.
