The Florida Small Business Emergency Bridge Loan program is shutting down after approving 1,000 of more than 38,000 applications received since it was activated March 17 because of the COVID-19 outbreak.
The Florida Department of Economic Opportunity said April 14 the program reached the $50 million appropriated for it.
The program allowed businesses to apply for no-interest loans up to $50,000. After a year, the loans must be repaid at an interest rate of 3.75%.
Florida Small Business Development Center CEO Michael W. Myhre said there are federal options available for businesses.
“We share in Governor DeSantis’ and our partners at the Florida Department of Economic Opportunity’s commitment to help our state’s small businesses survive and recover from COVID-19,” Myhre said in a news release. “To do that, we are now shifting our full attention to helping the unfunded applicants gain access and secure the vital federal disaster resources available to them.”
Federal assistance for businesses include the Paycheck Protection Program and the Economic Injury Disaster Loan program, administered by the U.S. Small Business Administration.
The PPP loan originated from the CARES Act and forgives loans if a business keeps all its employees on the payroll for eight weeks.
The EIDL program allows businesses to apply for a $10,000 emergency loan advance that doesn’t need to be repaid. It also offers loans up to $2 million to meet financial obligations that could have been met if the disaster did not occur. Small businesses can pay the loan back at a 3.75% interest rate.
The Florida SBDC is offering professional consultants and disaster specialists to provide free guidance to affected businesses to assess their options and assist them in preparing loan applications.