In Rhode Island, 11,128 small business owners and RI companies have received a total of $ 747,012,399 in Rhode Island SBA Economic Injury Disaster Loans (EIDLs).
Rhode Island Paycheck Protection Program (PPP) loan data show 17,282 RI small businesses have received a total of $1,000,161,994 worth of Rhode Island PPP loans from the Small Business Administration (SBA).
Rhode Island SBA Loans are a type of loan issued by the Small Business Administration (SBA). It provides either term loans or working capital to qualified small businesses through banks and other private lenders.
Rhode Island was considered a disaster area due to COVID, which allowed Rhode Island small business owners and those RI residents that qualified to apply.
SBA Offers Disaster Assistance to Rhode Island Small Businesses Economically Impacted by the Coronavirus (COVID-19)
The U.S. Small Business Administration is offering low-interest federal disaster loans for working capital to Rhode Island small businesses suffering substantial economic injury as a result of the Coronavirus (COVID-19), SBA Administrator Jovita Carranza announced today. SBA acted under its own authority, as provided by the Coronavirus Preparedness and Response Supplemental Appropriations Act that was recently signed by the President, to declare a disaster following a request received from Gov. Gina M. Raimondo on March 16, 2020.
What are Rhode Island SBA Disaster Loans (EIDL and PPP) ?
Rhode Island, and all other states, have multiple SBA loan programs, including the popular Economic Injury Disaster Loan (EIDL) and the Paycheck Protection Program (PPP).
In Rhode Island news, the U.S. Small Business Administration (SBA) announced that the deadline to apply for the Rhode Island Economic Injury Disaster Loan (EIDL) program for the COVID-19 Pandemic RI disaster declaration has been extended to December 31, 2021.
The Rhode Island Paycheck Protection Program (PPP) deadline has already expired. Companies may still claim the Rhode Island Employee Retention Credit as another way to get a tax credit refund for each employee they had on payroll during 2020 and 2021. This tax credit can be claimed until 2024 and 2025 for small businesses with W-2 employees in Rhode Island.
SBA loans are a type of loan given by the US government that must be paid back over a period of time. This is a low-interest debt that the Small Business Administration guarantees. This means that if the borrower defaults on their payment, the federal government will cover it to protect against loss.
These loans are popularly used in business expansion and provide an easy way for a company to receive a loan when they have trouble borrowing from banks or traditional lenders.
What are Rhode Island SBA Grants?
Rhode Island SBA grants, unlike loans, do not have to be repaid with interest fees. These grants come from several sources, including the US Department of Education and state governments / agencies that run specific grant programs designed to give employers money to assist with training and education programs.
The SBA loans are also used to recover from financial losses due to COVID and other natural disasters, such as floods, hurricanes, tornados, storms, fires, earthquakes, and other forms of natural disasters in Rhode Island.
Grants are often awarded to help Rhode Island small businesses offset the cost of employee training, or they can be used for start-up costs, such as new technology and equipment.
How Do SBA Loans Work in Rhode Island?
Rhode Island banks and private lenders provide SBA loans to small businesses that may not qualify for traditional loans. The Small Business Administration guarantees these loans against default, helping the business obtain financing from a place they couldn’t get it before.
As the loan is guaranteed, the interest rates tend to be lower as well as monthly payments. This makes SBA loans very popular with those who need funding fast but don’t want an expensive payment plan.
In Rhode Island, many businesses have received this SBA loan help and were able to grow their companies thanks to this assistance from the SBA in RI.
How Many Rhode Island SBA Loans Can You Have?
Rhode Island and Federal law restricts the number of SBA loans that can be issued. This is to help promote competition in the small business lending market and prevent large companies from swallowing up smaller ones.
With some exceptions, the limit for how many SBA 7(a) loans a company can have depends on how much money it has already borrowed.
How Long Do Rhode Island SBA Loans Take to Process?
The Rhode Island SBA loan process from application to final approval can take anywhere from three weeks to several months. This is because the Rhode Island lenders need to make sure everything is in order before committing this size.
While every Rhode Island company’s situation is different, it typically takes between 7 to 10 days for a company to qualify and be approved for an SBA loan. It is reported that, on average, it takes approximately 9 more days for the funds to go through once you are approved.
How to Apply for Rhode Island EIDL, PPP, or SBA Loans?
In the past, a business owner would have to go through a lengthy application process and meet certain requirements before being approved for an SBA loan. Now, companies can apply online, in some cases taking less than 10 minutes.
Once you’re approved, it takes about 2 weeks for lenders to fund your account since this is how long it takes for the company’s underwriting department to review everything once they receive all of the necessary documents about you and your Rhode Island business.
You’ll also need to allow time for any additional documentation that may come up during the approval process, which can add another week or more to this period.
How to Qualify for Grants for a Small Business in Rhode Island?
Grants are given to companies through both state and federal agencies for several reasons, and based on fund availability. Most commonly, they are employed in matching grants where the company must provide some funding themselves.
Rhode Island’s small businesses qualify based on their revenue, employees, or even employees that work within specific minority groups or low-income areas.
How to Apply for Small Business Grants in Rhode Island?
A company can apply for SBA grants by filling out an application for Rhode Island. In addition, the US government has a listing of all their available grants, including those provided through the SBA.
You’ll need to compose a proposal that explains why you qualify for the money and how much will be used to assist with your business goals. This proposal can include written proposals, presentations, or other presentation material depending on what requires.
The total amount you receive depends on how much money is available for distribution each year, and there may be different rules depending on if it’s federal or state funding.
Rhode Island Local SBA Office Address and Contact Information
In Rhode Island, there is one office:
Main SBA Assistance Office:
Providence, Rhode Island SBA Office
380 Westminster Street Room 511
Rhode Island SBA Telephone and Email Contact Information:
Providence – Rhode Island District Office
Over the years, the SBA has developed many small business loan and assistance programs, special outreach efforts and initiatives to aid and inform small businesses. The following describes briefly all the services and information available through the Rhode Island District Office:
• Financial assistance for new or existing businesses through guaranteed loans made by area bank and non-bank lenders.
• Free counseling, advice and information on starting, better operating or expanding a small business through (SCORE) Counselors to America’s Small Business.
Rhode Island SBA Summary and Conclusion
Rhode Island SBA loans and grants can be a great resource for any company looking to expand its operations, and many Rhode Island businesses have benefited from this type of SBA financing. Do you think your small business could benefit from an SBA loan? Did you already apply for one? Or, were you turned down for a PPP, EIDL, or other SBA disaster loan in Rhode Island?
Share your thoughts in the comment section below.
Rhode Island Small Business Help: Get Loan Assistance for Your Business in Rhode Island
Did you know you can request additional SBA EIDL loan funds in Rhode Island?
Did you know you can request an SBA loan reconsideration if you have been turned down for an SBA loan?
Whether your RI business is classified as a sole proprietorship, independent contractor, LLC, C-Corp, S-Corp, landlord, property investments, rental property owner, or other type of qualifying small business entity in Rhode Island, we may be able to help you.
Schedule Your Free Disaster Loan Consultation call to see if we may be able to help with your Rhode Island business situation.
Cover Image Credit: SBA.gov Rhode Island website.