Federal Loans Available for Richmond Area Businesses Affected by Water Outage

RICHMOND, Va. – Nearly 30 businesses in the Richmond area have applied for federal loans announced two weeks ago to support firms and nonprofits impacted by a January water outage. The U.S. Small Business Administration (SBA) is providing loans of up to $2 million for affected businesses through Jan. 9, 2026.

The downtown library on Franklin Street is one of two locations offering in-person applications until next Tuesday, May 6. Online applications will remain open for a year. Local businesses can also apply at the Henrico North Park Branch Library.

Lesley Hill, the SBA’s public affairs lead for the loans, reported that the recovery centers have seen eight walk-in applications so far—five at the downtown library and three at North Park. Additionally, 22 applications were submitted online since the loans were announced on April 16. “It’s showing that the businesses here are in fact computer-savvy. That’s a good thing,” Hill stated.

The loans, known as Economic Injury Disaster Loans, were launched following the declaration of a disaster area on April 9 due to operational failures at Richmond’s water treatment plant. This outage was deemed “completely avoidable” by the state health department, affecting Goochland, Hanover, Henrico, and Richmond as primary localities.

Other eligible counties include Caroline, Charles City, Chesterfield, Cumberland, Fluvanna, King William, Louisa, New Kent, Powhatan, and Spotsylvania. The 30-year loans offer interest rates of 4% for small businesses and as low as 3.6% for private nonprofits, based in part on businesses’ earnings from the same period last year.

<p“These are working capital loans to help the small businesses that would have been able to meet their ordinary financial needs,” Hill explained, noting that some businesses are still struggling as a result of the water crisis.

Applications are usually reviewed within five to seven days, with approved disbursements typically sent 10 to 14 days after approval. As of Tuesday, no loans had been disbursed yet.

Operating hours for the downtown library center are Monday to Friday, 9 a.m. to 6 p.m., and Saturday from 10 a.m. to 2 p.m. North Park Branch Library’s hours include Monday, Tuesday, and Friday from 10 a.m. to 4:30 p.m., Wednesday from 11:30 a.m. to 4:30 p.m., Thursday from 1 p.m. to 4:30 p.m., and Saturday from 10 a.m. to 1:30 p.m.

In addition to federal loans, the City of Richmond has awarded 117 grants to impacted businesses through a $500,000 fund initiated by the Richmond Economic Development Authority and the Metropolitan Business League. These grants, ranging from $2,500 to $5,000, are aimed at helping businesses recover from the water crisis.

Of nearly 200 applications received, 139 met eligibility criteria, with 61% of grant recipients being restaurants and food service businesses. As the city targets to distribute the remaining grants by the end of the month, the impact of January’s water outage continues to surface.

This week, Richmond and surrounding counties addressed concerns about elevated fluoride levels at the treatment plant, which had gone unreported for days. The incident has called for a collaborative regional approach to water management.