April 2nd 2024.
The collapse of the Francis Scott Key Bridge on March 26, 2024 was a tragic event that left many small businesses in the Mid-Atlantic region struggling to recover. In response, SBA Administrator Isabel Casillas Guzman announced on March 30 that these affected businesses could apply for low-interest, long-term Economic Injury Disaster Loans from the U.S. Small Business Administration.
According to the SBA, this loan opportunity was made possible by a disaster declaration request from Maryland Governor Wes Moore on March 29. The declaration encompassed the entire state as well as adjacent counties in the District of Columbia, Delaware, Pennsylvania, Virginia, and West Virginia. This means that small businesses, agricultural cooperatives, aquaculture businesses, and private nonprofit organizations in these areas are eligible to apply for federal EIDLs of up to $2 million to help offset any temporary losses in revenue caused by the bridge collapse.
These loans come with a fixed interest rate of 4% for small businesses and 3.25% for private nonprofits, and can be repaid over a period of up to 30 years. They can be used to cover various operating expenses such as fixed debts, payroll, accounts payable, and other financial obligations that may have been impacted by the disruption.
"Our hearts go out to Baltimore and the surrounding community as they mourn and begin the process of rebuilding," stated Guzman. "As the SBA and the Biden-Harris Administration, we are committed to supporting local small businesses during this challenging time caused by the bridge collapse." The collapse of the Francis Scott Key Bridge, which was previously reported by BLACK ENTERPRISE, occurred when a container ship crashed into a support column, causing seven cars to plunge into the Patapsco River.
Francisco Sánchez, Jr., Associate Administrator for the SBA's Office of Disaster Recovery and Resilience, also expressed concern for the small businesses affected by the bridge collapse. "The closure of the bridge will have a significant impact on small businesses that rely on the transportation and movement of goods through the Baltimore Harbor and along the Francis Scott Key Bridge for their livelihood," he said.
It's important to note that loan eligibility is based solely on the financial impact of the disaster, not property damage. This means that even if a business did not suffer any physical damage from the collapse, they may still be eligible for an EIDL. Additionally, interest and repayment on the loans will not begin until 12 months after the first disbursement, giving businesses some time to get back on their feet before starting to pay back the loan.
To further assist impacted businesses, the SBA has opened a second Business Recovery Center at the CareFirst Engagement Center in Baltimore, joining the existing center at the Dundalk Renaissance Center in Dundalk. These centers provide on-site support from federal government representatives and can help businesses with the loan application process.
Business owners looking to apply for an EIDL can do so online through the SBA's website at sba.gov/disaster. The website also offers additional disaster assistance information for those in need. In times like these, it's important for the community to come together and support one another. As Baltimore Mayor Brandon Scott stated in response to being labeled a "DEI Mayor," "What they mean is duly elected incumbent." Let's continue to support each other and rebuild together.
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