For two decades, Maria Torres dreamed of owning her own cafe. That wish became a reality when she opened All Seasons Café on Waterman Avenue in East Providence in January 2023.
Her business, open for breakfast and lunch, almost made it a full year without a major emergency. Then one happened just a mile away.
“I’ve pretty much lost all of my morning commuters,” said Torres, noting the bottom dropped out of her breakfast business after the abrupt closure of the westbound side of the Washington Bridge on I-195.
On Thursday afternoon, state officials are supposed to hold a briefing at the Department of Administration on the structural analysis of the Washington Bridge. Officials have been awaiting engineering reports with a recommendation on whether to fully replace the bridge or make significant repairs. The state closed the bridge last December after engineers discovered broken anchor rods put the structure at risk of collapse.
To save area small businesses from that same fate, on Dec. 19, 2023, the U.S. Small Business Administration (SBA) began offering low-interest Economic Injury Disaster Loans to those hurt by the traffic gridlock resulting from the bridge crisis. Businesses can apply for 4% interest loans up to $2 million. The interest rate for nonprofits is 3.25%. Interest rates normally range from 6% to 8%.
Torres is still worried but doesn’t want to take out a loan. For now, she said she’s managed to keep her cafe afloat with its catering operation.
“I already have enough debt, I don’t need more debt,” she said. “I’m grateful that it’s an option, but I shouldn’t have to take out a loan for a problem I didn’t create.”
Torres isn’t alone. The East Providence Chamber of Commerce’s new executive director, Anthony DeCrescenzo, said many local businesses he’s surveyed are hesitant to take out loans when so much remains uncertain.
“They don’t want to overextend themselves and take out anything that they’re going to have to pay back if they go out of business,” he said.
Alayne White, owner of a Bristol spa and beauty shop that bears her name, said loans just mean more payments.
“We’re going to be in debt until we die, this is so ridiculous,” she said. “My main component of business is appointments.”
Since the bridge’s closure, White said her shop has seen a 15% reduction in regular clients who would travel from Providence.
About half of applications approved
Rhode Island District SBA Director Mark S. Hayward retired at the end of December after a 30 year career. Rhode Island Current reached out to SBA Public Affairs Specialist Julie Garrett, who is based in Atlanta,
As of March 7, Garrett said the SBA received 951 applications and approved $586,200 in loans for Rhode Island businesses in Bristol, Kent and Providence counties; Bristol County, Massachusetts; and Windham County, Connecticut. By contrast, the SBA approved over $1 million in loans for Providence County businesses impacted by severe weather last September. There were 414 applications.
But Garrett had no information about how many loans were approved or denied.
The SBA’s Business Recovery Center is running out of East Providence City Hall. East Providence Mayor Bob DaSilva told Rhode Island Current that he believes many businesses are applying to the loan program but their applications are still getting processed.
DaSilva forwarded Rhode Island Current an email from SBA Associate Administrator of Congressional and Legislative Affairs George Holman to Rhode Island’s U.S. Sen Jack Reed, which said that the SBA approved 158 applications as of Feb. 29. The email said that represented 51% of all loan applications at that time. It did not provide a dollar amount for the total of approved loans.
Garrett said applications can be denied for the following reasons: Defaulting on a prior SBA/government loan, the business owner did not demonstrate economic injury based on the documentation provided, unsatisfactory credit history, or lack of repayment ability.
DaSilva said business owners worried about getting rejected can always stop by the SBA center in East Providence if they need help. He also said owners are worried about not receiving enough money from their initial loans can always make amendments.
“It’s really on an as-you-need basis,” he said.
What White and Torres say they want from government officials is the answer to what the plan for the Washington Bridge is.
“It’s been three months already,” Torres said. “We haven’t even started to reopen it yet.”
DaSilva said his office is organizing a resource fair tentatively scheduled for March 21. It will feature representatives from the SBA, Rhode Island Commerce Corporation, and local chambers of commerce — all of whom DaSilva said could point struggling business owners in the right direction.
“There are a lot of opportunities for small businesses that people don’t know exist,” he said.
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