Due to the economic impact of COVID-19, the Small Business Association (SBA) is providing disaster assistance loans for small businesses.
“SBA’s economic Injury Disaster Loans offer up to $2 million in assistance for a small business. These loans are meant to provide vital economic support to help overcome the temporary loss of revenue they are experiencing.”… “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 privately held businesses, and 2.75% for non-profits. Do note that businesses with credit available elsewhere, are not eligible. For more information regarding the process for accessing SBA’s Disaster Relief Lending please see the link below.
Similarly, the Florida Small Business Emergency Bridge Loan Program has been activated offering up to $50,000 per eligible small business. “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.” After one year, the interest rate will be 12% per annum until repaid in full. Applications for qualified for-profit, privately held businesses will be accepted through May 8, 2020, contingent on the availability of funds.