It’s now been nearly six months since the Washington Bridge shut down. In that time, we’ve experienced unprecedented traffic jams, gridlock across East Providence and the East Side, and ever-changing traffic patterns.
We now know this undertaking will cost at least $455 million dollars and take more than two years to complete. For many, this new reality simply means the inconvenience of added travel time and frustration. But for the thousands of small business owners in the shadow of the Washington Bridge, the consequences are dire.
In the immediate aftermath of the closure, as entrepreneurs helplessly watched their business decline, the US Small Business Administration offered federal loans as a lifeline. These loans come with a 4 percent interest rate, and almost $5.57 million has been disbursed with $11.07 million approved. While SBA has done their best with the capital available, loans offer no tangible roadmap for these businesses to stay afloat for the next two-plus years.
While bolstered plans and proposals for additional funding have been numerous, we are yet to see these measures implemented in real time. However, we have seen $400,000 allocated by the State of Rhode Island for a marketing campaign to “highlight buying and dining in Providence and East Providence.”
Our business community doesn’t need a marketing campaign, and they absolutely don’t need additional debt.
These entrepreneurs are on the precipice and they cannot continue to wait for help while expensive tourism ads run on TV and social media. They are fighting for survival every day, and the next two years are going to require all hands on deck. Hard working Rhode Islanders like Kristin Smith, owner of Scentique candle bar and fragrance studio, have seen double digit impacts making it impossible to stay in the East Bay.
“The past few months have been tough, impacting our operations and forcing us to move to Providence. Our inventory isn’t moving as fast, making it hard to buy in bulk. Client orders have reduced, and people are reluctant to rent our space for events due to the longer travel time. From October to December, usually our busiest months, we experienced a 40 percent decrease in business. I also lost my only employee due to the move. While I prefer a grant, I am applying for a loan to get through this period,” Smith said.
As legislators and state leaders, we need to develop a strategic road map with proven resources to help our small businesses survive. Through targeted grants, we can expediently review applications and provide critical funds to the hardest hit. Additional relief can be offered in the form of tax breaks for businesses in Providence and East Providence. Joining together as a business community we can pool our assets and provide best practices for navigating the unknown.
Every day, our organizations work with bright-eyed entrepreneurs, eager to start the business of their dreams right here in Rhode Island. This community has worked hard to establish a vibrant, thriving ecosystem of social impact businesses and beyond. These individuals are not responsible for what happened to the bridge, and just like in any disaster, our leaders need to step up and provide tangible, lasting solutions that matter to the real people of this state.
Julie Owens is the CEO of Social Enterprise Greenhouse. Lisa Ranglin is the President and CEO of Rhode Island Black Business Association. Both are founding members of the Business Empowerment Alliance of Rhode Island (BEARI).