• The SBA has Economic Injury Disaster Loans which provide small businesses with working capital loans of up to $2M that can provide vital economic support to small businesses to help overcome the temporary loss of revenue they are experiencing. 

• These loans are designed to provide working capital to small businesses who are suffering substantial economic injury as a result of COVID-19. 

• The loan proceeds can be used to pay fixed debts, payroll, accounts payable and other bills that can’t be paid due to the disaster’s impact. 

• The interest rate on these loans is 3.75% for small businesses without credit available elsewhere; businesses with credit available elsewhere are not eligible. The interest rate for non-profit businesses is 2.75%.  

• The term of such loans can be up to a maximum of 30 years which the specific term of each loan to be decided on a case by case basis depending on each borrower’s ability to pay.

• The following link provides further detailed information regarding the SBA’s disaster loan program as well as other information which is relevant to small businesses during the COVID-19 pandemic: https://www.sba.gov/page/coronavirus-covid-19-small-business-guidance-loan-resources

• Governor DeSantis announced on Monday, March 16, 2020, that the Florida Small Business Emergency Bridge Loan Program which is managed by the Florida Department of Economic Opportunity would be activated.

• There will be up to $50M allocated for this program.

• Small business owners with two to 100 employees whose business is located in Florida and who are affected by COVID-19 can apply for short term loans of up to $50,000. 

• The loans are interest-free for the loan term and are designed to bridge the gap to either federal SBA loans or commercially available loans. The interest rate is 12% per annum on the unpaid balance after the loan term until the loan is repaid in full. The term for each loan is 1 year.

• To be eligible to apply for these loans, the business must have been established prior to March 9, 2020 and must be able to demonstrate economic impacts as a result of COVID-19. Applications will be accepted through May 8, 2020, contingent on the availability of funds. 

• In addition, the Florida Department of Economic Opportunity is currently surveying businesses throughout the State who have been impacted by COVID-19. This survey can be accessed HERE.

• For additional information regarding the Florida Small Business Emergency Bridge Loan Program please visit: https://floridadisasterloan.org/