We have become aware of two business assistance programs that could potentially assist our small business clients in the wake of the current health and economic crisis we are facing due to the Coronavirus outbreak. The first is the U.S. Small Business Administration (SBA) Disaster Business Loan and the second is the Florida Department of Economic Opportunity Small Business Emergency Bridge Loan.
When considering your options as a business owner in a time of crisis our instinctive response is to borrow funds if they are available. That is not always the best option, sometimes effective cash management and renegotiating with current long-term creditors could be better options. Many resources have been made available to employers to provide cash flow assistance such as immediate payroll tax credits, tax payment deferrals, and deferments of existing SBA loan payments. Lets look at some of the important information regarding these resources.
U.S. Small Business Administration (SBA) Disaster Business Loan
The SBA is offering low-interest federal disaster loans for working capital to small businesses suffering substantial economic injury as a result of the Coronavirus (COVID-19).
Important information to note:
Required Documentation:
Voluntary documentation to provide to loan committee to assist in making an informed loan decision:
Florida Department of Economic Opportunity (DEO) Small Business Emergency Bridge Loan
The Florida DEO 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.
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.
Important information to note:
Required Documentation:
Voluntary documentation to provide to loan committee to assist in making an informed loan decision:
We are here to assist you in completing these forms and advising you on your best route to financial and economic stability in this most uncertain time. Please contact our office at (844) 850-6166 or by clicking here and we can provide you with copy of the loan package(s).
Any advice contained in this article, is not intended as a thorough, in-depth analysis of specific issues, nor a substitute for a formal opinion. If desired, we would be pleased to perform the requisite research and provide you with a detailed written analysis. Such an engagement may be the subject of a separate engagement letter that would define the scope and limits of the desired consultation services.