A month after the Washington Bridge closing, these businesses are trying to recover

EAST PROVIDENCE − Tucked in a back room of the Weaver Library, a group of traveling agents are waiting for small-business owners to come looking for help with the Small Business Administration's disaster loans for the Dec. 11 shutdown of the Washington Bridge's westbound span.

Sitting at a conference table amid cardboard Dunkin' coffee carafes, SBA agent Mike Swartz talks about past disasters he's worked: flooding in New York, hurricanes in North Carolina, the Block Island Harborside Inn fire. And now, a bridge closing.

Interest in the SBA loans has been high

The Small Business Administration opened a Recovery Center in the library on Dec. 19. The interest was so high that while Gov. Dan McKee and other state officials tried to hold their news conference, business owners were trying to sneak by for a consultation.

Three weeks later, 461 applications have been filed for the 4% interest federal disaster loans, most of them online. Of those applications, 40% are still in review, said Deputy Director Matt Spoehr.

In the first week the Recovery Center was open, agents were seeing eight to 10 people a day, which has slowed to between six and 10 people on average. While many people come to the recovery center to get help applying for the loans or to figure out if they want to apply, others stop in to check on their loan status or get help with documents needed for a pending application.

The Recovery Center will remain open until at least Jan. 26, while the applications, and the chance to ask for an increased loan amount, will remain open until Sept. 16.

Spoehr said economic impact is often not realized until at least a quarter after the disaster, or longer. Immediate impacts are often seen as canceled events or gigs, while longer term impacts include forced changes in suppliers, or for the suppliers, a loss in clients.

The staff at the Recovery Center are adept at explaining the program, and helping people figure out whether they have an economic loss that would qualify, he said.

Spoehr and spokeswoman Anita Steenson said it is always better to apply and not take the money than it is to not apply at all, as no one is required to take the money after applying.

How are businesses doing?

The gift store Frog & Toad, with locations on Providence's East Side and West End, was hit hard when the bridge first closed. In the first few days of the closing, which happened right in the heart of the holiday season, sales were down 50%, owner Asher Schofield said.

Sales recovered, with a "bananas" final holiday weekend, eclipsing sales from last year's season, Schofield said.

"I wouldn't say we recovered 100%, but it salvaged the season," he said.

Schofield said he has applied for a disaster loan, but doesn't know whether he will take it if his application is accepted.

"I don't know where it's likely to go, but it's important to get in the application and see what the terms are," he said.

Now that the holiday season has passed, sales at the store are normal, Schofield said.

At the deli and restaurant Italian Corner at 10 Boyd Ave. in East Providence, sales in the first few days following the bridge closing were down 40%, said owner Massimo Dellolio.

"We're heading back to normality right now, with some bumps in the road, no pun intended," he said.

Sales are above what they were the year before but have fallen short of the anticipated trend line of an increase of 20% to 25% over last year. Whether it's a direct result of the bridge closing is anyone's guess, he said.

Respiratory illnesses are reducing staff

At Frog & Toad and Italian Corner, the biggest problem right now is not traffic but staffing, as people are getting sick from any of the three respiratory illnesses circulating in the community: COVID, the flu and RSV.

Italian Corner had to close early for three days because staff called out sick and Dellolio said he didn't want to burn out the people who came in. He caught something himself right after Christmas and had to stay home.

"Nowadays, there's no avoiding getting something," he said.

At Frog & Toad, three people were sick, which is a lot for Schofield's small staff. However, it is manageable now that the holiday rush is already over, he said.

How do you apply for a loan?

Those who want to apply for a loan can either do so online through the Small Business Administration's website or go to the Recovery Center in the Weaver Library.

The direct link to the bridge closure disaster declaration is: https://lending.sba.gov/search-disaster/?disaster=RI-20001

What is needed to apply?

For anyone who goes into the Recovery Center, the one piece of documentation needed is a photo identification.

While the application itself does not require documentation, business owners should be prepared to furnish tax returns from last year and other financial documents that could show the "economic injury" from the bridge closing.

While not explicitly required, Swartz always advises applicants to include a few paragraphs or up to a page explaining how the disaster affected their business, and a biography of their business. That narrative cuts down on processing time as it often answers the questions that people processing the applications have.

What are the loan terms?

• There is no interest accrued and no payments for the first 12 months, and no prepayment penalty.

• The loans are offered through the federal government, not private banks.

• The loans have a maximum term of 30 years.

• The maximum interest rate is 4%.

• Loans go up to $2 million, but businesses that are a "major source of employment" can apply for a higher amount.

• Borrowers must be able to show that they can repay their loan.

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What is the deadline to file an application?

The deadline to file an application, or to ask for an increased loan amount, is Sept. 16, 2024.

Future disaster loans could help homeowners, renters

While the loans related to the bridge closing are for businesses and nonprofits, Small Business Administration disaster loans for other disasters, like storms, floods and fires, are usually also available to renters and homeowners.

Those loans cover up to $500,000 for homeowners and $100,000 for renters, with interest rates as low as 2.5%.

McKee issued a declaration of disaster for the unnamed storm that flooded homes and businesses in mid-December, the first step toward getting disaster federal disaster loans.

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Reporter Patrick Anderson contributed to this report. Reach reporter Wheeler Cowperthwaite at wcowperthwaite@providencejournal.com or follow him on Twitter @WheelerReporter.

This article originally appeared on The Providence Journal: Washington Bridge closing SBA loans popular with local RI businesses