RI Commerce: Short-Term Bridge Loans Made Available for Restaurants and Microbusinesses
From Rhode Island Commerce:
Rhode Island Commerce, in partnership with Local Initiative Support Corporation (LISC), the Rhode Island Hospitality Association and Bank Newport, is launching a short-term bridge loan program for our restaurants and smallest businesses (1 to 10 employees).
The program is funded through $1 million from the Rhode Island Commerce Corporation’s Small Business Loan Fund and $1 million from Bank Newport.
Loan detailsLoans will have zero percent interest. You can apply for these loans starting Friday, April 3, through the LISC website. There’s a three step process.
- Apply for SBA funding. Before you apply for a microloan, you have to show that you’ve already applied for federal SBA funding, which you can do here. Do not wait to apply. Call us at 521-HELP if you have questions.
- Complete LISC application. You can apply for these loans starting Friday, April 3, through the LISC website.
- Complete credit check and loan paperwork. Staff from the Small Business Loan Fund will contact you to complete the final loan paperwork and complete the loan award.
Frequently asked questionsQ: What kind of businesses are eligible to apply?
- Restaurants and other food service businesses; or
- Microbusinesses (businesses with 1-10 employees) affected by coronavirus-related closures or restrictions.
Yes, if the bar serves food.
Q: Does my business have to be open in order to be eligible?
No, but the program anticipates that at least half of the businesses served by this bridge loan program will either be operational or have plans to return to some operations in the next two weeks.
Q: When would I need to pay this loan back?
The loan would be payable upon receipt of their requested funds from SBA or 180 days, whichever is sooner.
Q: What is the interest rate?
Zero percent interest.