New Assistance Announced for Small Businesses Impacted by Baltimore Bridge Collapse

At a glance

• The main takeaway: The Small Businesses Administration is offering low-interest disaster loans to small businesses in the Mid-Atlantic impacted by the Francis Scott Key Bridge collapse.
• Who is eligible: Small businesses and nonprofits in the designated disaster area may be eligible for loans to cover normal operating expenses that cannot be paid due to revenue loss from the collapse.
• Next steps: Eligible businesses should seek additional information and submit applications through the SBA’s disaster assistance portal. The loan opportunity will expire on December 31, 2024.

The full story:

The Small Business Administration (SBA) announced April 3, 2024, it would offer a new avenue of financial support for small businesses impacted by the Francis Scott Key Bridge collapse on March 26, 2024. The collapse left the entire Mid-Atlantic community reeling, with small businesses in the area feeling some of the deepest impacts of the sudden loss of a critical eastern port.

Beginning April 3, 2024, affected small businesses may apply through the SBA for a low-interest, long-term Economic Injury Disaster Loan (EIDL). Applications will be accepted through the end of 2024, with the opportunity expiring on December 31, 2024.

Relief for business that need it most

Qualified applicants are eligible for a 30-year loan of up to $2 million at a 4% interest rate; nonprofits may qualify for a further reduced 3.25% interest rate. The program will not offer loan forgiveness, but interest will not begin to accrue until 12 months from the date of the first disbursement. Loans will be funded directly by the SBA – not external banks – and repayment will also begin 12 months from the first disbursement.

Eligible applicants include small businesses, small agricultural cooperatives, small aquaculture businesses, and private nonprofit organizations within the designated disaster area. The SBA issued a disaster declaration covering the entire state of Maryland and the District of Columbia, as well as some counties in neighboring states:

• Delaware: Kent, New Castle, and Sussex
• Pennsylvania: Adams, Bedford, Chester, Fayette, Franklin, Fulton, Lancaster, Somerset, and York
• Virginia: Accomack, Independent City of Alexandria, Arlington, Fairfax, and Loudoun
• West Virginia: Berkley, Grant, Hampshire, Jefferson, Mineral, Morgan, and Preston

The SBA clarified that eligibility is based on the financial impact of the disaster rather than actual property damage, and the loan program is intended to help impacted small businesses to overcome temporary loss of revenue that occurred as a direct result of the bridge collapse. Therefore, eligible businesses may use these loans to cover payroll, fixed debts, and other normal operating expenses that can’t be paid as a result of the bridge collapse.

The bottom line

This EIDL program through the SBA could be a much-needed lifeline for the small businesses in the Mid-Atlantic that were most vulnerable to the economic impact of the Baltimore bridge collapse. Applications can be submitted through the SBA’s disaster assistance portal, where additional information is available about the SBA’s disaster services. Our thoughts are with the families who lost loves as well as all who were impacted by this tragic event. Aprio continues to monitor updates to the federal disaster services offered in response to the Francis Scott Key Bridge collapse in our efforts to continue supporting impacted businesses in the area.