Coronavirus threatens Florida’s economy — but there is help for small businesses
Federal quarantine recommendations and the closure of bars and restaurants is affecting many small businesses, which are now facing a marked decline in clientele.
In response, the U.S. Small Business Administration is offering low-interest loans to those businesses and entities now running thin on cash.
The Economic Injury Disaster Loan program offers loans to small businesses, providing capital of as much as $2 million to subsidize them during periods of loss. It is administered by local SBA officials.
Meanwhile, on Sunday, Gov. Ron DeSantis announced the activation of Florida’s Business Damage Assessment. Florida businesses that believe they have been impacted can visit floridadisaster.biz to take the survey, which is helping the state analyze the impact of coronavirus and determine the scale of need.
And on Monday, DeSantis announced a statewide loan program, the Florida Small Business Emergency Loan Program, to further mitigate the impact on small business.
“We recognize the consequences of coronavirus on the economy and especially on small businesses,” he said in a press conference.
He specified that he was earmarking $50 million to the loan program in the short-term to assist businesses that have between two and 100 employees and which belong to industries most affected by coronavirus. The loans are for one year and do not come with interest payments or pre-payment penalties.
“The objective is that they can count on a source of funds to maintain their ability to function,” he said.
Last Friday, Sonia McCormack, a music instructor and the owner of a small children’s academy in Miami Springs, expressed her concern about being able to pay rent and monthly bills of her business if the school is forced to temporarily close its doors.
“Small businesses have trouble saving,” she said. “The moment that students stop coming, the business will have to close.”
“The most important thing is to receive money in order to pay the rent and other monthly bills that we won’t be able to cover if we close. It’s very hard,” said the instructor, who has spent the past years building the academy.
DeSantis also instructed the Department of Revenue to provide more flexibility on payments coming due to the state.
For more information about the SBA’s loan program, visit sba.gov/funding-programs/disaster-assistance.
Meanwhile, submissions for the Florida Small Business Emergency Loan Program will be accepted until May 8. Call 866-737-7232 for more information.
The two loans can be applied for simultaneously and can be rolled together.
This story was originally published March 17, 2020 at 5:12 PM.
