Florida Coronavirus Emergency Bridge Loans
Applications will be accepted by qualified Florida small businesses under this program through May 8, 2020, contingent on the availability of funds.
The Florida Small Business Emergency Bridge Loan Program is currently available to small business owners located in all Florida counties statewide that experienced economic damage as a result of COVID-19.
These short-term, interest-free working capital loans are intended to “bridge the gap” between the time a major catastrophe hits and when a business has secured longer term recovery resources, such as sufficient profits from a revived business, receipt of payments on insurance claims or federal disaster assistance.
The Florida Small Business Emergency Bridge Loan Program is not designed to be the primary source of assistance to affected small businesses, which is why eligibility is linked pursuant to other financial sources. Note: Loans made under this program are short-term debt loans made by the state of Florida using public funds – they are not grants. Florida Small Business Emergency Bridge Loans require repayment by the approved applicant from longer term financial resources.
Designated Disaster Areas: All Florida counties statewide per Executive Order 20-52.
Qualified Applicant: Applications will be accepted by qualified for-profit, privately held small businesses that maintain a place of business in the state of Florida. All qualified applicants must have been established prior to March 9, 2020, and suffered economic injury as a result of the designated disaster. Qualified small business applicants must be an employer business with 2 to 100 employees.
Amount: Up to $50,000 per eligible small business. Loans of up to $100,000 may be made in special cases as warranted by the need of the eligible small business.
Term: 1 year.
Limitation: Only one loan may be made per eligible business. All previous bridge loans received MUST be paid in full.
Interest Rate: Loans will be interest-free for the loan term (1 year). The Interest rate will be 12% per annum on the unpaid balance thereafter, until the loan balance is repaid in full. Loan default is subject to a normal commercial collection process.
Be a for-profit, privately held small business that maintains a place of business in the State of Florida with 2 or more employees or 1099 workers.
Be located in a designated disaster area. Eligible Florida counties per Executive Order 20-52 are: All counties statewide.
Be established prior to March 9, 2020, the date of the designated disaster.
Be able to demonstrate economic injury as a result of the designated disaster. The need for the loan and use of proceeds must be directly related to the economic injury caused by the designated disaster.
Loans will be made to individuals who, individually or collectively, own at least 51% of the equity of the business.
A borrower will be required to sign an agreement that the proceeds of the loan will be used only for purposes of maintaining or restarting the business in the designated area. Use of proceeds to pay off debts already incurred for qualifying business maintenance or restart purposes may be authorized on a case-by-case basis.
A borrower will be required to certify that the proceeds of insurance claims, other loans applied for or to be applied for, or other financial assistance will be used to repay the loan.
Required Information for Application
Government issued personal identification of all individual applicants (driver’s license, state or federal ID, or passport).
Federal Business tax returns for the last 2 completed years, if available.
Employee payroll and 1099 information.
Personal tax returns for the last 2 completed years with attached Schedule C for all individual applicants for each individual business owner that signed the application, if available.
Additional information that the applicant believes would assist the Loan Review Committee in making its decision.
Loan Recipient: Loans will be made to individuals who are at least 51% owners of the business.
Use of Proceeds: A borrower will be required to sign an agreement that proceeds of the loan will be used only for purposes of maintaining or restarting the business in the designated area. Use of proceeds to pay off debts already incurred for qualifying business maintenance or restart purposes may be authorized on a case-by-case basis.
Dedicated Sources of Repayment: A borrower will be required to certify that the proceeds of insurance claims, other loans applied for or to be applied for, or other financial assistance will be used to repay the loan.
Closing Documents: Closing documents, prepared by the Program Administrator and provided to the applicant at closing, will include:
- Promissory Note.
- Business Purpose Statement.
- Loan Settlement Statement.
- Assignment of Proceeds from other Sources.
- Closing Checklist.
- Payment Coupon.
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