Coronavirus (COVID-19): Rhode Island Bridge Loan Program Helps Small Businesses and Nonprofits Awaiting CARES Act Funding

Through the CARES Act, the recent $2 trillion dollar coronavirus relief package passed by Congress, Rhode Island will receive $1.2 billion in SBA disaster loan funding. It may take weeks, however, before this money reaches Rhode Island’s small businesses and non-profits.  Recognizing their need for immediate capital, Governor Raimondo announced a Rhode Island-specific bridge loan program at yesterday’s daily press conference with more information to follow.

Administered by R.I. Commerce Corporation, and capitalized at $1 million each by R.I. Commerce Corporation and Bank Newport, the program aims to provide short-term loans to employers with 10 or fewer employees while they wait to receive CARES Act funding. At her press conference, Governor Raimondo further encouraged other banks and financial institutions to provide additional credit options with the expectation that the $2 million in bridge loan funding will go quickly.

For more information

This update was written by Greg N. Hoffman and C. Alexander Chiulli. For questions or additional information about how Rhode Island’s Bridge Loan Program can help your organization, please contact Greg or Alex at 401-273-7171 for assistance during these uncertain times.

Barton Gilman provides experienced and innovative legal advice on every facet of small business and nonprofit formation, governance, financing and operations. We regularly assist our clients with employment matters, contracts, compliance with state and federal statutes, trademark and intellectual property, bylaws and policies, and liability claims.