In Rhode Island, construction contributed $2.5 billion (4.0%) of the state’s GDP of $63.5 billion. There were 706,000 construction firms in the U.S. in 2017, including 3,163 in Rhode Island.
The Construction and Remodeling Industry is one of the most important sectors of the economy. The Small Business Administration (SBA) understands that and has put in place a disaster loan program specifically for General Contractors.
Rhode Island Construction and Remodeling SBA EIDL Disaster Loans for General Contractors
The SBA’s Economic Injury Disaster Loan (EIDL) program offers up to a $2 million increase in loans to help businesses affected by a declared disaster. General Contractors can use these loans to pay for operating expenses, such as employee salaries, rent, and utility bills.
In addition, EIDL funds may be used to meet any disaster-related need such as debris removal, emergency protective measures, repair/rebuilding expenses, or property replacement. Expenses not directly related to repairing damage from a disaster cause would not be considered “eligible” for this guidance.
If you have suffered a substantial economic injury and are one of the following types of businesses located in a declared disaster area, you may be eligible for an SBA EIDL:
- Small business
- Small agricultural cooperative
- Most private nonprofit organizations
Rhode Island Types of General Contractors
Here are some common types of general contractors that can apply for the SBA COVID EIDL Disaster Loan Program.
- Rhode Island General Contractors
- Rhode Island Excavation Contractors
- Rhode Island Concrete Contractors
- Rhode Island Framing Contractors
- Rhode Island Steel Contractors
- Rhode Island Window and Door Contractors
- Rhode Island Electrical Contractors
- Rhode Island Plumbing Contractors
- Rhode Island Heating, Ventilation, and Air Conditioning (HVAC) Contractors
- Rhode Island Fire Alarm and Sprinkler Contractors
- Rhode Island Roofing Contractors
- Rhode Island Insulation Contractors
- Rhode Island Drywall Contractors
- Rhode Island Taping Contractors
- Rhode Island Plaster Contractors
- Rhode Island Flooring Contractors
- Rhode Island Finish Carpentry Contractors
- Rhode Island Painting Contractors
- Rhode Island Masonry Contractors
- Rhode Island Landscaping Contractors
Contractor Eligibility for SBA EIDL Disaster Loans for General Contractors in RI
To be eligible for an EIDL loan, a business must have been adversely affected by a declared disaster. This could include lost revenue due to the disaster, increased costs related to the disaster, or damage to the business’s physical property.
- Substantial economic injury means the business is unable to meet its obligations and pay its ordinary and necessary operating expenses.
- EIDL provides the necessary working capital to help small businesses impacted by a disaster survive until normal operations resume.
- EIDL assistance is available only to small businesses when SBA determines they are unable to obtain credit elsewhere.
SBA can provide up to $2 million to help meet financial obligations and operating expenses that could have been met had the disaster not occurred. The loan amount will be based on your actual economic injury and your company’s financial needs, regardless of whether the business suffered any property damage.
A business may qualify for, both, a Rhode Island SBA EIDL and a physical disaster loan.
The maximum combined loan amount is $2 million. A separate SBA Disaster Assistance program known as business physical disaster loans covers property damage.
Use of Proceeds
- Working capital and normal expenses such as the continuation of health care benefits, rent, utilities, and fixed debt payments
- Payroll and benefits for employees. See the Rhode Island Employee Retention Credit program for employee tax credits for your business in Rhode Island.
Terms
- The interest rate will not exceed 4%.
Maturity
- Up to 30 years, with repayment term to be determined by the ability to repay the loan
- No prepayment penalty or fees
Collateral Requirements
- Required for loans over $25,000
- Real estate is the preferred collateral. Loans of $200,000 or less will not require the owner of the business to use their primary residence as collateral if it is determined the owner has other assets of equal quality and a value equal to or greater than the amount of the loan.
How to Apply for a Rhode Island SBA EIDL Loan for General Contractors?
- Apply online for a Rhode Island SBA disaster assistance loan. Rhode Island SBA will send an inspector to estimate the cost of damage, once your application is completed and submitted.
- Complete, sign, and date IRS Form 4506-T with your application, giving permission for the IRS to provide SBA with your tax return information.
- The COVID EIDL deadline for Rhode Island Contractors that have never applied for an EIDL loan yet, is December 31, 2021. Reconsiderations and Increase Requests for Rhode Island Contractors continue into 2022.
Additional Information on Rhode Island Construction and Remodeling SBA EIDL Disaster Loans for General Contractors
Contact the SBA Disaster Assistance Customer Service Center at:
Phone: 800-659-2955
TTY: 800-877-8339
Email: [email protected]
Application Process for Rhode Island Construction and Remodeling SBA EIDL Disaster Loans for General Contractors
New Loan
If the small business is a first-time COVID EIDL applicant, complete the following steps to apply:
- Confirm eligibility (review FAQs and below Loan Eligibility section).
- Complete Intake Form.
- Sign up to create a portal username via an SBA email invite.
- Complete portal steps and submit relevant documents.
- Respond to SBA requests for signature, confirmation, and documents.
The average SBA decision timeline for $500,000 or under is several weeks.
Increased Loan
If the small business has already obtained a loan via COVID EIDL before and does not already have an outstanding loan increase application in process, complete the following steps to apply for a loan increase:
- Confirm Eligibility.
- Log onto Account on SBA Portal (do not apply for another loan) to submit loan modification.
- Complete portal steps and submit relevant documents.
- Respond to SBA requests for signature, confirmation, and documents.
The average SBA decision timeline for $500,000 or under loans is several weeks. The average SBA decision timeline for greater than $500,000 loans is one and a half months.
Required Documents for Rhode Island Construction SBA EIDL Disaster Loans for General Contractors
- For loans of all sizes, federal income taxes, IRS Form 4506-T, and ODA Form P-022-Standard Resolution are required.
- For loans greater than $500,000, the following additional documents will be solicited:
- SBA Form 2202 – Schedule of Liabilities
- SBA Form 413 – Personal Financial Statement
- List of Real Estate Owned (template on intake form)
- For all loans, additional verification documentation may be solicited by the SBA through the review process
Loan Eligibility for General Contractors
To obtain a loan via COVID EIDL, small business owners must meet the eligibility requirements.
Additionally, below are the credit score requirements:
- $500,000 or under: 570
- greater than $500,000: 625
Small businesses must qualify for a certain loan amount by completing the economic injury formula which takes into account two years’ worth of revenue and the cost of goods sold to produce an eligible loan amount.
Rhode Island General Contractors Conclusion and Summary
The Small Business Administration (SBA) is committed to helping Rhode Island Contractors and small businesses impacted by the COVID-19 pandemic. The agency has established the Economic Injury Disaster Loan (EIDL) program to provide financial assistance to qualifying businesses including the Construction and Remodeling sector in RI.
The COVID EIDL deadline for Rhode Island Contractors that have never applied for an EIDL loan yet, is December 31, 2021. Reconsiderations and Increase Requests for Rhode Island Contractors continue into 2022.
Rhode Island General Contractor and Construction Help: Get SBA Loan Assistance for Your Contractor Business
Was Your Rhode Island General Contractor SBA EIDL Loan Denied?
Has your Construction and Remodeling SBA EIDL loan been denied for your RI Contractor business?
We can assist you in filing for an SBA EIDL loan reconsideration appeal for your Contractor business.
Schedule Your Free Disaster Loan Consultation to see if we may be able to help your Contracting business with the SBA Loan Reconsideration Process in Rhode Island.
Need an Increase on Your Rhode Island General Contractor SBA EIDL Loan?
Did you already receive a Rhode Island SBA EIDL loan for your Construction and Remodeling business?
We can assist your business in requesting additional SBA EIDL loan funds through the increase request process.
Schedule Your Free Disaster Loan Consultation to see if we may be able to help your Contractor business with the SBA Increase Request Process in Rhode Island.
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