FINANCING

Emergency Loan Fund

Raimondo Announces Emergency Loan Fund for Impacted Aquidneck Island Businesses

Governor Gina Raimondo, Commerce Secretary Stefan Pryor, members of Rhode Island’s philanthropic and business community and the Newport County Chamber of Commerce to announce a $1.45 million-dollar emergency loan fund for businesses directly impacted by the recent events related to the gas shut off on Aquidneck Island.

The fund will offer emergency loans of up to $25,000 to eligible businesses with no payments and no interest for the first six months. Credible insurance claims and/or claims in accordance with National Grid’s business reimbursement policies for affected businesses will be required as collateral for these emergency loans. The Rhode Island Commerce Corporation, through its Small Business Loan Fund, will commit up to $1 million in loans to the program, with another $200,000 committed by the Rhode Island Foundation and $250,000 by BankNewport.

Applications for the fund will open Tuesday, January 29. There will be an expedited application and approval process for the emergency loans. Our goal is that, once a business has submitted a complete loan application, that application will be processed within two businesses days whenever possible.

The fund is the result of the collective effort of the Rhode Island Commerce Corporation and its Small Business Loan Fund, the Rhode Island Foundation and Bank Newport. The Small Business Loan Fund of the Rhode Island Commerce Corporation will commit up to $1 million in loans to the fund, with another $250,000 committed by BankNewport and $200,000 by the Rhode Island Foundation.

Forms and Disaster Relief Application
National Grid Client Fact Sheet
Personal Financial Statement
Natural Gas Disaster Relief Application
Application Checklist

WHO QUALIFIES: Any business on Aquidneck Island that has been impacted by the recent gas incident is eligible to apply and may qualify for the funds. Credible insurance claims and/or claims in accordance with National Grid’s business reimbursement policies for affected businesses will be required as collateral for these emergency loans.

TERMS/RATES: this fund is being offered with no payments and no interest for the first 6 months. For businesses that extend beyond a 6-month period, a 4% rate will apply. Businesses can apply for up to $25,000 with no minimum.

EXPEDITED APPLICATION PROCESS: The fund is designed to enable expedited application and approval, with the goal of getting applications processed within two business days whenever possible.

HOW TO APPLY: Rhode Island Commerce Corporation staff will be onsite at the Newport Visitor’s Center beginning Tuesday to meet with businesses and process loans. Business can also call the Corporation’s Small Business Hotline at (401) 521-HELP.

ADDITIONAL RESOURCES: The Commerce Corporation’s seven existing small business lenders welcome applications to our non-emergency small business-friendly loan programs.

Small Business Loans

Small Business Loans

Small businesses are the heart and soul of our nation’s and state’s economy. They comprise 99.9% of all businesses across the nation and 98.9% percent of all businesses in Rhode Island. Unfortunately, small businesses often find themselves constrained by the balance sheets or liquidity requirements of traditional bank lending parameters. At CommerceRI, we know a small business’s success can result in rapid growth and financing needs that may exceed the leverage ratios of traditional banks. Our Small Business Loan Fund (SBLF) helps level the playing field and aims to fill the gap in financing that small and mid-sized businesses face. If your small business needs a direct, fully secured loan, the SBLF provides up to $500,000 for working capital to existing manufacturing, processing, and selected service businesses. Additionally, manufacturers seeking to finance the acquisition of land, buildings, and equipment may qualify for loans in excess of $500,000. Interest rates are fixed, repayment terms are flexible, and there’s an expectation that at least one job will be created for each $50,000 you borrow. Referencecs SBLF Purpose Statement SBLF Requirements CommerceRI Financial Services Business Profile and Eligibility Form

Contact

Stacy Farrell Financial Services Operations Manager

Stacy Farrell

Financial Services Operations Manager

Small Business Assistance Program

This program helps entrepreneurs and small businesses that are having difficulty obtaining adequate credit from traditional lending organizations. The program focuses on women- and minority-owned enterprises, as well as those in Rhode Island’s underserved communities. The program partners with the following organizations to provide direct loans to businesses. Partners for direct loans at or above $25,000:

• Business Development Company of Rhode Island: Peter Dorsey, 401-351-3036
• South Eastern Economic Development (SEED) Corporation: Maria Gooch-Smith, 508-822-1020, ext. 314
• Community Investment Corporation: Buck Harris, 401-406-7282, ext. 128

Partners for direct micro-loans between $2,000 and $25,000:

• Center for Women & Enterprise: Amy Grondin, CPA 617-532-0242
• Social Enterprise Greenhouse: Annie Dickson, 401-272-2558, ext. 4047
• Community Investment Corporation: Buck Harris, 401-406-7282, ext. 128
• Rhode Island Black Business Association (RIBBA): Cynthia Scott, 401-383-1179

Rhode Island Capital Access Program For $1,000- $750,000  The program encourages banks and credit unions to make slightly riskier loans by providing matching funds from the state to create cash collateral accounts. Rhode Island Capital Corporation, which administers the program, also offers a full suite of business lines of credit, SBA loans, term loans, and mezzanine investment from $50,000 to $5 million.

• Dave Harrington, 781-928-1117
• Carol Brennan, 401-450-0047

 

In The News

Mushrooming RI farm gets $325,000 loan through state program. CommerceRI state SMB program has backed loans worth $600,000 so far

References

Rhode Island statute Small Business Assistance Overview (English) Small Business Assistance Overview (Spanish)

Contact

Matt Vargas Vice President, Business Assistance

Matt Vargas

Vice President, Business Assistance

 

Contact

Doris Blanchard Assistant Director SupplyRI

Doris Blanchard

Assistant Director SupplyRI

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