PROVIDENCE – Governor Dan McKee announced a significant budget amendment on Monday, allocating $1.3 million in unused federal COVID relief funds to businesses impacted by the ongoing Washington Bridge westbound closure. This amendment aims to provide much-needed financial support to businesses facing revenue losses and challenges due to the closure.
The funds will be distributed among three areas: East Providence will receive $600,000, Providence will receive $400,000, and the remaining $300,000 will be allocated to businesses in the rest of the state, overseen by the Executive Office of Commerce.
Governor McKee emphasized the need to support businesses affected by the bridge closure, ensuring their continued success in the years to come. East Providence and Providence will have the flexibility to determine how their respective shares of the funding will be utilized, with options ranging from direct grants to other forms of business support.
This announcement comes over four months after the closure of the Washington Bridge westbound, which has resulted in severe traffic congestion on local roads and has had a detrimental impact on businesses in the vicinity. The replacement of the westbound span is anticipated to take two or more years, leaving businesses facing prolonged uncertainty and financial strain.
The budget amendment is an updated version of an earlier plan proposed by Governor McKee to provide support to local businesses. This latest version allocates approximately $200,000 more than the previous proposal and also includes direct funding for Providence and East Providence.
The funds allocated in this amendment originate from unspent COVID business support programs, according to Governor McKee’s office. The General Assembly is currently reviewing the state budget, which typically passes in June.
In addition to the $1.3 million in federal COVID funds, Governor McKee’s office also announced $400,000 in hotel tax revenue that will be dedicated to marketing initiatives aimed at supporting businesses impacted by the bridge closure.
East Providence Mayor Bob DaSilva expressed his gratitude for the allocation and noted that the city is actively exploring options for distributing the funds if approved by the General Assembly. He highlighted the importance of determining eligible businesses and exploring various distribution methods to ensure the funds reach those in need as quickly as possible.
While the details of how the funds will be distributed in Providence are yet to be determined, House Speaker Joseph Shekarchi and Senate President Dominick Ruggerio released a joint statement acknowledging the concerns of small businesses affected by the bridge reconstruction and indicating that the budget amendment would be considered by the Finance Committees in their respective chambers.
Rick Simone, president of the Federal Hill Commerce Association, expressed concerns about the potential delays in distributing the funds to businesses in need, emphasizing the urgency of the situation for many who are struggling. He suggested considering the amendment as an emergency measure to expedite the process.
Since December, businesses have also had the option to apply for federal loans from the US Small Business Administration (SBA), with interest rates of 4 percent for for-profit companies. As of April 21, 266 businesses have been approved for loans, 174 have been declined, and 210 loan files are still being processed. So far, 148 loans have been disbursed for a total of $2.67 million.
Some business owners, however, have expressed reluctance to take on additional debt, especially after the challenges they have faced throughout the COVID-19 pandemic.
The Washington Bridge closure continues to impact businesses in the area, and the funds allocated by Governor McKee and the state government aim to alleviate the financial burden and support their recovery. The distribution and utilization of these funds will be closely monitored in the coming weeks and months.
