We are working to help our clients and small businesses sort through this difficult time. We have been studying the changing legislative landscape — here’s our latest summary of programs available to assist small businesses.
Three Programs Available to Florida Businesses
There are at least three programs available to Florida business owners at this time — the Florida Small Business Emergency Bridge Loan, the SBA’s Economic Injury Disaster Loan (EIDL) program, and the newly-enacted Paycheck Protection Program (PPP), which is part of last week’s Coronavirus Aid, Relief, and Economic Security Act (CARES ACT). Here’s a brief discussion of each, with links to application resources and further information.
Florida Disaster Loan
The Florida Small Business Emergency Bridge Loan program provides Florida businesses with up to a $50,000 bridge loan in the event of a disaster, and COVID-19 is considered an eligible disaster. The loan is available to businesses with 2-100 employees.
You may be able to pay off this loan using the proceeds of the EIDL or Paycheck Protection Program loan described below to convert this short term loan into a longer term. But be sure you will be in a position to start repayment in the first month after the money is disbursed. For application information, please go to the FloridaDisasterLoan.org website.
SBA (EIDL) Loan
The Federal Economic Injury Disaster Loan (EIDL) Program provides loans for businesses with fewer than 500 employees, and is available to sole proprietorships as well as business entities.
The SBA loan officer will determine amount you may borrow based upon your fixed expenses as shown in the application materials. Current processing time is 18-27 days and is subject to change. The main application page is https://covid19relief.sba.gov/#/
Federal CARES ACT Loan -Paycheck Protection Program (PPP)
This is the newest program being made available, approved by Congress and signed by the President on Friday, March 27, 2020. The SBA has 30 days from Friday to issue further guidance on how these loans will work. These loans will be issued by banks and will have the potential for forgiveness/to be converted into non-taxable grants, They are intended to cover expenses dating from February 15, 2020 through June 30 2020.
No collateral required.
We have created a downloadable resource to help you prepare an EIDL application. The download contains .pdfs of the forms required to apply, along with screenshots of the online application so you can gather the information in advance. Click here to download EIDL Application Guidance. This link expires on March 6, 2020, so act today.
Call our office at 813-778-5161 if we can be of further assistance, including connecting you to other helpful resources.