Small businesses apply for federal loans after Baltimore bridge collapse

A federal program offering loans to small businesses hurt by the collapse of Baltimore's Francis Scott Key Bridge has received 500 applications, officials said.

The funds, which could start being distributed within about two weeks, are meant to help keep companies afloat as Baltimore’s vital port remains closed to most maritime traffic, said Isabella Casillas Guzman, who heads the U.S. Small Business Administration. Guzman visited Baltimore on Thursday to meet with business owners, along with local and state leaders.

Businesses involved in transportation and supply chain logistics will likely suffer most in the short term, she said, but the long-term ripple effects will be widespread.

“It’s a full range of impact,” she said following a roundtable discussion at an office in Baltimore that was opened in recent days to assist business owners after the deadly collapse, which has caused logistical problems for shipping along the East Coast. Baltimore’s port handles more cars and farm equipment than any other similar facility in the country.

The assistance program offers low-interest loans of up to $2 million.

The Maryland Senate unanimously approved a bill Wednesday night authorizing the governor to use the state’s rainy day fund to help unemployed port employees. That sends the bill to the Maryland House, which could approve the bill this week and send it to Gov. Wes Moore, a Democrat.

The legislation also would let the governor use state reserves to help some small businesses avoid layoffs and encourage companies that relocate elsewhere to return to Baltimore once the port reopens.

The Norwegian shipping firm Wallenius Wilhelmsen, which has a hub in Baltimore, said it estimates losses between $5 million and $10 million as