Small Business Administration Launches Loans For Small Businesses Amid Baltimore Bridge Collapse

Small businesses and private nonprofit organizations affected by the collapse are welcome to apply for SBA's federal EIDLs.

In the wake of the tragic Francis Scott Key Bridge collapse on March 26, 2024, SBA Administrator Isabel Casillas Guzman announced on March 30 that impacted small businesses across the Mid-Atlantic region could apply for low-interest, long-term Economic Injury Disaster Loans (EIDLs) from the U.S. Small Business Administration (SBA).

According to the SBA, the loan availability comes in response to a disaster declaration request from Maryland Gov. Wes Moore on March 29, encompassing the entire state along with contiguous counties in the District of Columbia, Delaware, Pennsylvania, Virginia, and West Virginia.

Small businesses, agricultural cooperatives, aquaculture businesses, and private nonprofit organizations are welcome to apply for federal EIDLs of up to $2 million to counteract temporary decreases in revenue due to the collapse. These loans, with interest rates of 4% for small businesses, 3.25% for private nonprofits, and terms up to 30 years, can cover operating expenses like fixed debts, payroll, accounts payable, and other unpaid financial obligations due to the disruption.

“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,” Guzman said. As previously covered by BLACK ENTERPRISE, The Francis Scott Key Bridge in Baltimore collapsed last week after a container ship crashed into a support column, reportedly causing seven cars to plummet into the Patapsco River.

Francisco Sánchez, Jr., associate administrator for the SBA’s Office of Disaster Recovery and Resilience, stated: “The bridge collapse will impact small businesses who depend on the transportation and movement of goods from the Baltimore Harbor and along the Francis Scott Key Bridge for their economic livelihood.”

Loan eligibility hinges solely on the disaster’s financial impact, not property damage. Interest accrual and repayment begin 12 months after the first disbursement.

To further assist impacted businesses, the SBA opened a second Business Recovery Center at the CareFirst Engagement Center, 1501 South Clinton Street, in Baltimore, joining the existing Dundalk Renaissance Center, 11 Center Place, Suite 201, in Dundalk. Both provide on-site federal government support.

Applicants can apply online at sba.gov/disaster and access additional disaster assistance information through the website.