As investigators continue working to determine the cause of the blaze that devastated Block Island’s historic Harborside Inn, U.S. Senator Jack Reed is working to ensure affected small businesses can access needed assistance from the U.S. Small Business Administration.
The major fire hit during what is normally one of the busiest times of the year for tourism to Block Island, forcing the town to declare a temporary State of Emergency.
While Block Island is fully reopened for business, small businesses in the vicinity of the fire could feel long-term economic impacts from the disaster.
Senator Reed has been in touch with the SBA, which operates the Economic Injury Disaster Loan (EIDL) program, and could potentially assist small businesses. Members of Senator Reed’s staff travelled to Block Island today to meet with local leaders, small business and property owners, and residents.
“First and foremost, we are all so grateful no one was hurt. We really thank our tremendous first responders and all the brave firefighters from Block Island and neighboring communities who rushed in to keep people safe and contain the blaze,” said Senator Reed. “The loss of the historic Harborside Inn is tragic. It’s the first thing you see when you step off the ferry and tourism to the island and the local economy could take a hit. My office is here to help impacted small businesses and residents. Anyone who needs assistance can call my office. I am committed to ensuring small businesses negatively impacted by this event, which was beyond their control, can access the working capital they need to recover.”
In addition to businesses damaged by the fire, small businesses that did not suffer physical injury during the Harborside Inn Fire, but face substantial economic injury as a result, may also be eligible to apply for a low-interest federal EIDL loan. These economic injury loans are available at no more than 4 percent interest for up to 30 years. The loans usually are processed within weeks, and first payment on the loans can be deferred for twelve months.
Residents and business owners may begin the SBA application process as soon as the state certifies and SBA approves a disaster declaration.
Today, Senator Reed sent a letter to the head of the SBA urging the agency “to provide eligible disaster assistance as soon as possible to Block Island small businesses affected by a large fire this weekend.”
Reed’s letter noted: “While the full extent of damages is still unclear, a number of small businesses are unlikely to rapidly reopen. As an extremely popular summer destination for families throughout the northeast, Block Island and its small businesses rely on August for a significant portion of annual economic activity and revenue. Local institutions that cannot quickly reopen will lose critically important income in the weeks and months ahead.”
Reed continued: “Once SBA receives a state disaster declaration, I urge you to provide prompt, robust disaster assistance resources to eligible small businesses.”
Rhode Islanders with EIDL questions may contact the SBA’s Rhode Island district office directly at: 401-528-4561, or online at: https://www.sba.gov/district/rhode-island.
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