As small businesses across the country continue to reel from the effects of COVID-19, federal, state, and local governments are offering relief in the form of various emergency loan and grant programs. Among the options for Florida-based small businesses is the Florida Small Business Emergency Bridge Loan Program. The Program offers eligible small businesses short-term (up to one year), interest-free loans of up to $50,000, the proceeds of which are to be applied “for purposes of maintaining or restarting business operations.”
Loans under the Program are available for most for-profit, privately-held small businesses that satisfy the following criteria:
- are physically located in Florida;
- were established and actively operating prior to March 9, 2020;
- have between 2 and 100 employees and independent contractors;
- have paid in full any previously-received Florida Small Business Emergency Bridge Loan; and
- can demonstrate that the business has suffered a significant economic injury and is unable to meet its obligations to pay ordinary and necessary operating expenses as a result of the COVID-19 outbreak.
Loans under the program are made directly to individuals who, individually or collectively, own at least 51% of the equity of the eligible business. More information can be found online, here. The deadline to submit an application is May 8, 2020, but because available proceeds under the Program are limited, we recommend applying as soon as practicable.
The information presented is for educational and informational purposes and is not intended to constitute legal advice. Readers should consult their professional advisor. Any opinions expressed within this article are solely the opinion of the featured author and not of Morris, Manning & Martin, LLP.