The same federal agency that helped small businesses across the country stay afloat during the pandemic has set up shop about two miles from the site of the fallen Francis Scott Key Bridge in Maryland to provide potential economic assistance to businesses in the state and the region.
United States Small Business Administration Administrator Isabel Casillas Guzman announced on Saturday that businesses in the Mid-Atlantic region affected by the bridge collapse may apply for low-interest, long-term Economic Injury Disaster Loans of up to $2 million.
“These loans may be used to pay normal operating expenses such as fixed debts, payroll, accounts payable and other bills that can’t be paid because of the disruption,” a March 30 press release said.
The loans, with a 4% interest rate for small businesses and 3.25% interest rate for private nonprofit organizations with terms up to 30 years, were made available after Maryland Gov. Wes Moore requested a disaster declaration by the Small Business Administration on March 29. The ask from the governor came just three days after the bridge fell, curtailing vessel traffic near the Port of Baltimore, a top 20 port in the country ranked by both total tonnage and containers.
According to the release, the loans are “restricted to small businesses without the financial ability to offset the adverse impact without hardship.” The declaration extends to the entire state of Maryland as well as contiguous counties in Delaware, Pennsylvania, Virginia, West Virginia and the District of Columbia.
More:Francis Scott Key Bridge ‘connected family, communities, jobs’ in Baltimore
Local small businesses may ‘access vital economic assistance,’ official says
“I want to thank Gov. Moore for his hard work and response to this situation that allowed us to ensure local small businesses will now be able to access vital economic assistance,” said the Small Business Administration’s Maryland District Director Stephen Umberger, in the release.
The federal loans do not accrue interest until a year from the date of first disbursement, and repayment does not begin until a year from the date of the first disbursement.
Applicants may apply online and receive additional disaster assistance information at sba.gov/disaster, or by calling or emailing the Administration’s Customer Service Center at (800) 659-2955 or disastercustomerservice@sba.gov.
The agency is also setting up an outpost in Dundalk near the site of the fallen bridge where customer service representatives at the administration’s Business Recovery Center are set to assist business owners with their applications, accept documents for existing applications and provide status updates on applications. A representative with the nonprofit organization Dundalk Renaissance confirmed in April 1 phone call that it is hosting the Small Business Administration officials at its Eastern Baltimore County site in Dundalk.
A second Small Business Administration Business Recovery Center site is set up at the CareFirst Engagement Center in the Canton neighborhood in Baltimore, said Rachel Howard, a spokesperson for the Baltimore District Office of the U.S. Small Business Administration.
The federal efforts are in addition to the efforts at the state level to provide relief to those affected by the closure of the Port of Baltimore. A state bill, the Maryland Protecting Opportunities and Regional Trade (PORT) Act, is scheduled to have a hearing April 2 at 1 p.m.
More:Maryland lawmakers launch effort to aid workers impacted by Baltimore bridge collapse
Dwight A. Weingarten is an investigative reporter, covering the Maryland State House and state issues. He can be reached at dweingarten@gannett.com or on Twitter at @DwightWeingart2.
