SBA opens disaster loan relief for Rhode Island businesses after historic snowstorm

Traders Union
All News
Financial News
SBA disaster relief for RI businesses

Highlights

SBA offers Economic Injury Disaster Loans up to $2 million at interest rates of 4% for small businesses and 3.625% for private nonprofits in Rhode Island and select Connecticut and Massachusetts counties.
Loans feature no accrued interest and no payments due until 12 months post-disbursement, with repayment terms extending up to 30 years based on applicant financial condition.
Starting Friday, June 12, SBA will operate a Business Recovery Center in Providence County to assist businesses and nonprofits with disaster loan applications and program inquiries.

Loan terms and application timeline

As reported by the U.S. Small Business Administration, the agency is making low-interest Economic Injury Disaster Loans available to eligible small businesses, small agricultural cooperatives, nurseries and private nonprofit organizations affected by the storm. The declaration covers Rhode Island counties including Bristol, Kent, Newport, Providence and Washington, along with New London and Windham in Connecticut and Bristol, Norfolk and Worcester in Massachusetts.

The financing is designed to support working capital needs tied directly to the disaster, even when a business or nonprofit does not suffer physical damage. Loan proceeds may be used for fixed debts, payroll, accounts payable and other bills that cannot be paid because of the storm’s economic effects.

The SBA says loan amounts can reach $2 million, with interest rates as low as 4% for small businesses and 3.625% for private nonprofits, and terms of up to 30 years. Interest does not accrue, and payments are not due until 12 months after the first loan disbursement, while final loan terms depend on each applicant’s financial condition.

Regional recovery support and business impact

Beginning Friday, June 12, SBA customer service representatives are set to staff a Business Recovery Center in Providence County to answer questions, explain the disaster loan program and help applicants complete filings. Walk-ins are accepted, and in-person appointments can also be scheduled in advance through the agency’s booking system.

Chris Stallings, associate administrator of the Office of Disaster Recovery and Resilience at the SBA, says the loans help eligible businesses and private nonprofits cover operating expenses after a disaster, supporting both organizational recovery and local economic stability. The program excludes agricultural producers, farmers and ranchers, except for aquaculture enterprises.

Our earlier coverage of congressional scrutiny of SBA-backed small business lending detailed calls for the agency to review lenders removed from the USDA’s OneRD loan guarantee program who still participate in the SBA’s 7(a) channel. We noted concerns that compliance failures in one federal guarantee program could signal broader risks for taxpayers, alongside the SBA’s broader push to tighten underwriting standards and oversight to curb waste, fraud, and abuse.

This material may contain third-party opinions, none of the data and information on this webpage constitutes investment advice according to our Disclaimer. While we adhere to strict Editorial Integrity, this post may contain references to products from our partners.