Financial Assistance Offered To Affected Newport Businesses

NEWPORT, R.I. -- Updated 5:04 pm: As the gas restoration effort draws to a close in Newport, Gov. Gina Raimondo, Newport Mayor Jamie Bova and other state officials are turning their focus to helping local businesses affected by the outage.

"[Bova and I] spent a lot of time talking to small businesses, and this has not been easy for them," Raimondo said at a press conference Monday morning. "Although small businesses are the lifeblood of our community, especially here in Newport, being without a week's worth of revenue is very difficult."

To help ease the burden, Gov. Raimondo, along with Commerce Secretary Stefan Pryor, announced the creation of a $1.45 million emergency loan fund for those Aquidneck Island businesses directly affected by the week-long gas outage. Business owners can take out a loan of up to $25,000 with no interest or repayment for the first six months.

After six months, a four percent interest rate will apply. If the full loan is repaid within six months, no interest will be levied against the loan.

The funds were made available through a $1 million contribution from the Commerce Department's small business fund, $200,000 from the Rhode Island Foundation, and $250,000 from Bank Newport.

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"We're moving as fast as we can to respond to this," Raimondo said. "My office, along with the mayor, will be working to do broader outreach to this community, to really get our hands around the magnitude of the problem."

In order to have an immediate impact, Gov. Raimondo said loan funds will be available as soon as possible, with little paperwork required.

"We want you to have quick access to capital so you can get back up on your feet," she said. "This is meant to be a bridge loan so you can stay in business while you wait for those reimbursements."

According to Pryor, the emergency loan structure allows for the use of National Grid reimbursement claims or insurance claims to be used as collateral by businesses, an unusual move that was designed specifically for this case.

"Our pledge is that we will work as hard as we can to respond to an applicant with a completed file within two business days," Pryor added.

Applications will be available starting Tuesday, with members of the Commerce Department available for assistance at the Discover Newport visitor's center throughout the day. Anyone in need of assistance on Monday can speak with Commerce Department workers at Gurney's Resort on Goat Island, or call 401-521-HELP for more information.

In addition, an informational session will be held at the Newport Marriott on Tuesday from 10 a.m. until 12 p.m. to answer questions and provide more information. All members of the Aquidneck Island business community are invited to attend.

National Grid announced Monday that the company will distribute $500,000 in need-based grants in partnership with Local Initiatives Support Corporation (LISC) Rhode Island. The goal of the program is to provide immediate support to local businesses.

“Though we have spent millions in the community over the past week to provide food, shelter, and temporary heat for homeowners, we recognize our equal responsibility in supporting the business community that we are a dedicated member of,” said Terry Sobolewski, Chief Customer Officer at National Grid. “We are now entering the economic restoration phase of this event and this grant program we launched today, in partnership with the LISC, will help impacted businesses reopen their doors and get back on their feet quickly and with efficiently.”

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