RI Congressional Delegation Urges SBA to Swiftly Assist Local Businesses Impacted by Washington Bridge Closure

Bridge closure is an economic disaster 

U.S. Senators Jack Reed and Sheldon Whitehouse and Representatives Seth Magaziner and Gabe Amo sent a letter to the Small Business Administration (SBA) requesting the agency to expeditiously review applications for economic assistance and provide updates on its efforts to deliver federal relief to local businesses. 

 

Following the sudden closure of the Washington Bridge, the federal delegation sent a letter to SBA Administrator Isabel Guzman to promptly review the state’s disaster assistance request. A week later, Administrator Guzman approved low-interest, long-term Economic Injury Disaster Loans (EIDL) to ensure impacted small businesses could access low-cost financing they may need to stay afloat during this crisis. However, many RI businesses are struggling to access federal assistance.

 

“As the representatives of constituents who are impacted, we remain concerned that small businesses are struggling to access federal relief in a timely manner,” wrote the delegation. 

“The closure of the westbound span of the Washington Bridge, a vital transportation artery for our region, has significantly impacted the flow of workers and commuters, which has led to severe challenges for small businesses.”

 

The letter reiterates a previous request by the federal delegation to expeditiously review EIDL applications to help local businesses get the financial support they need to keep their doors open. Additionally, the letter requests frequent updates from the SBA on applicants’ loan application status that will allow small business owners to better navigate this crisis and make long-term business decisions.

 

The Washington Bridge was the main thoroughfare connecting Providence and the eastern part of Rhode Island, and carried nearly 100,000 vehicles crossing southeastern New England each day. 

The bridge’s westbound closure has created significant traffic bottlenecks in both Providence and East Providence, significantly hindering local residents and preventing customers, workers, and delivery drivers from accessing local businesses. 

These challenges include disruptions to their workforce and supply chains and increased transportation costs, which have reduced revenue and made it difficult for small business owners and entrepreneurs to keep their doors open. 

 

Full text of the letter is below. A PDF copy of the letter is available here.

The Honorable Isabella Casillas Guzman Administrator

U.S. Small Business Administration

409 3rd St, S.W.

Washington, D.C. 20416

 

Dear Administrator Guzman:

 

We write to reiterate our request that the Small Business Administration (SBA) expeditiously review applications for economic assistance to Rhode Island small businesses affected by the closure of the westbound span of the Washington Bridge. We also wish to thank you and your office for the March 25, 2024, status update on the SBA’s response to the Washington Bridge closure to date, but as the representatives of constituents who are impacted, we remain concerned that small businesses are struggling to access federal relief in a timely manner.

 

The closure of the westbound span of the Washington Bridge, a vital transportation artery for our region, has significantly impacted the flow of workers and commuters, which has led to severe challenges for small businesses. Many businesses have experienced disruptions to their workforce and supply chains and increased transportation costs, which have reduced revenue and made it difficult for small business owners and entrepreneurs to keep their doors open. While we appreciate SBA’s responsiveness to our original request to make impacted small businesses and nonprofits eligible for low-interest, long-term Economic Injury Disaster Loans (EIDL), as well as the work of the Business Recovery Center SBA opened in East Providence, we continue to hear from small business owners facing lengthy delays in the EIDL application and disbursement process.

 

It is our understanding that only approximately 10 percent of loan applications submitted have been approved. To help local businesses better navigate this crisis and make long-term business decisions, we request the following information be provided on a biweekly basis:

 

1. The total number of loan applications submitted by applicants affected by the Washington Bridge closure.
2. The total number of loans for which SBA has disbursed any amount of funds.
3. The current status of these loan applications, including how many applications are under review, approved, withdrawn or rejected, how much total financial assistance was requested, and how much total financial assistance has been approved.
4. The reasons for rejections by category, such as insufficient documentation, credit issues, delinquency on loans received during the COVID-19 pandemic, or other factors.
5. The average amount of time it takes for an applicant to receive a loan determination from the SBA from the initial date of application.

 

We are grateful for the SBA’s ongoing commitment to supporting small businesses. We look forward to collaborating with the SBA to ensure that Rhode Islanders have access to timely and transparent loan decisions.

 

Thank you for your attention to this urgent matter. We look forward to your prompt response.

 

Sincerely,