One of our readers sent us this email and we wanted to get this information to you asap. Thanks for sharing!!
Details are below for assistance to a business’, they would apply directly to SBDC on-line and this is now open for the Bridge Loan or contact SBDC local offices for assistance if needed and thenDirectly to SBA for the Disaster Loan explained below:
Ø Florida, two separate programs. SBA Disaster Assistance and the Florida Bridge Loan Program – The Bridge Loan applications started Wednesday – see links below to prepare the application, and submit to SBDC. The SBA Disaster Assistance is now available and you can apply online and be sure to click on EIDL. Please advise all sole proprietors that they MUST select the Economic Injury (EIDL) Loan Option.
SBA’s Disaster Assistance: The U.S. Small Business Administration is offering designated states and territories low-interest federal disaster loans for working capital to small businesses suffering substantial economic injury as a result of the Coronavirus (COVID-19). Upon a request received from a state’s or territory’s Governor, SBA will issue under its own authority, as provided by the Coronavirus Preparedness and Response Supplemental Appropriations Act that was recently signed by the President, an Economic Injury Disaster Loan declaration.
Ø Any such Economic Injury Disaster Loan assistance declaration issued by the SBA makes loans available to small businesses and private, non-profit organizations in designated areas of a state or territory to help alleviate economic injury caused by the Coronavirus (COVID-19).
Ø SBA’s Office of Disaster Assistance will coordinate with the state’s or territory’s Governor to submit the request for Economic Injury Disaster Loan assistance.
Ø Once a declaration is made for designated areas within a state, the information on the application process for Economic Injury Disaster Loan assistance will be made available to all affected communities as well as updated on our website: SBA.gov/disaster.
Ø SBA’s Economic Injury Disaster Loans offer up to $2 million in assistance per small business and can provide vital economic support to small businesses to help overcome the temporary loss of revenue they are experiencing.
Ø These loans may be used to pay fixed debts, payroll, accounts payable and other bills that can’t be paid because of the disaster’s impact. The interest rate is 3.75% for small businesses without credit available elsewhere; businesses with credit available elsewhere are not eligible. The interest rate for non-profits is 2.75%.
Ø SBA offers loans with long-term repayments in order to keep payments affordable, up to a maximum of 30 years. Terms are determined on a case-by-case basis, based upon each borrower’s ability to repay.
Ø SBA’s Economic Injury Disaster Loans are just one piece of the expanded focus of the federal government’s coordinated response, and the SBA is strongly committed to providing the most effective and customer-focused response possible.
For additional information, please contact the SBA disaster assistance customer service center. Call 1-800-659-2955 (TTY: 1-800-877-8339) or e-mail [email protected]. Visit SBA.gov/disaster for more information. Applications https://www.sba.gov/funding-programs/disaster-assistance
State of Florida Opens Bridge Loan Program for COVID-19:
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.
Ø Designated Disaster Areas: All Florida counties statewide per Executive Order 20-52.
Ø 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.
Ø 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.
Ø Term: 1 year.
Ø Limitation: Only one loan may be made per eligible business. All previous bridge loans received MUST be paid in full.
Ø 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.
Ø Application Period: Applications will be accepted through May 8, 2020, contingent on the availability of funds.
To Get Started:
- Review eligibility requirements and loan process.
- Download, complete and sign the application form.
- Gather required support documentation.
- Contact and submit completed and signed application and support documentation to your local Florida Small Business Development Center (SBDC).
A Third Option is coming, The Bill in Process, we are anxiously awaiting to confirm details on this SBA Loan that will go through Banks.
Please stay in touch and be safe!
|Jeannine M. Balanky
Senior Vice President / SBA Business Development Officer III
American Momentum Bank