Small Businesses Hurt by Maryland Bridge Collapse Are Eligible for Disaster Loans

April 10, 2024 by Mae Anderson

The Small Business Administration is offering assistance to those affected by the bridge collapse in Maryland.

Small businesses in the Mid-Atlantic region will be eligible for low-interest, long-term Economic Injury Disaster Loans of up to $2 million

Other Assistance Available Those affected by the Key Bridge tragedy have other sources of assistance as well.Maryland lawmakers approved using the state’s rainy day fund to help Port of Baltimore employees who are out of work and are not eligible for unemployment insurance. Also state monies can be used to help businesses avoid laying off people and to encourage firms to return to Baltimore when it reopens.The city has a wage subsidy program to help small businesses keep their employees on payroll and maintain their health benefits. The city has already provided $1 million. Eligible businesses can receive up to $22,500. Baltimore also has a $450,000 fund for monetary aid to the victims’ families.Also, a team from Goldman Sachs has committed to work to connect small businesses with resources and workers with temporary job opportunities.

“The SBA joins the entire federal family in grieving for the lives lost in the tragic collapse of the Francis Scott Key Bridge,” said SBA Administrator Isabel Casillas Guzman. “As Baltimore and the wider community mourn and start to rebuild, the SBA and the Biden-Harris Administration stand ready to help local small businesses get through the economic disruption caused by the bridge collapse.”

The bridge was a key transportation route in the region. Every year, 1.3 million trucks cross the bridge — 3,600 a day, according to the American Trucking Associations. Trucks that carry hazardous materials will now have to make 30 miles of detours around Baltimore because they are prohibited from using the city’s tunnels, adding to delays and increasing fuel costs.

The declaration covers the entire state of Maryland and contiguous counties, including the District of Columbia. Small businesses, small agricultural cooperatives, small aquaculture businesses and private nonprofit organizations can apply for the loan.

Eligibility is based on the financial impact of the disaster only and not on any physical property damage. These loans have an interest rate of 4% for small businesses and 3.25% for private nonprofit organizations with terms up to 30 years.

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