Florida Emergency Bridge Loan

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Emergency Bridge Loan Program

Florida Emergency Small Business Bridge Loan Program.

The Florida Small Business Emergency Bridge Loan Program is now available to business owners operating in Florida counties statewide that have experienced economic hardship as a result of COVID-19.

General Details:

  • $1,000 to $100,000 available (determined on the needs, qualifications, and eligibility of the business)
  • 0% interest for the first year, and an interest rate of 12% after
  • Only one loan per eligible business
  • Deadline to apply is May 8, 2020.

Florida Small Business Emergency Bridge Loan Program

What are these Bridge Loans?
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.
The Emergency Bridge Loan Program is not designed to be the primary source of assistance to affected small businesses, which is why eligibility is linked to pursuit of other sources. Please note: This program provides a short-term loan of State of Florida public funds, and is not not a grant.

 

Who is Eligible?
Under the program, eligible small businesses in all 67 Florida counties, including Miami-Dade and Monroe Counties, may apply for loans for up to $50,000 for 1 -year terms. Loans of up to $100,000 may be made in special cases warranted by small business needs.

To be eligible for this disaster relief program, below are general requirements:

  • The business must be a for-profit, privately held small business with a place of business in Florida.
  • The business must be located in a Florida county designated as a disaster area, including Miami-Dade & Monroe.
  • The business must have at least 2 years of operation.
  • The business must have gross annual revenues of at least $50,000 per year.
  • The business must be an eligible industry/business type.
  • The business must be able to demonstrate economic injury as a result of COVID-19.
  • The business must be an employer with a minimum of two (2) and maximum of one hundred (100) employees within the previous year. Documentation of employee compensation must be provided at the time of application. Note: For the purposes of this program, employee is defined to include 1099 employees.

Note: The need for the loan and use of proceeds must be directly related to the economic injury caused by COVID-19

 

What are the Loan Details?

  • Amount: $1,000 to $100,000 available (determined on the needs, qualifications, and eligibility of the business)
  • Interest 0% interest for the first year, and an interest rate of 12% after
  • Term: 1 Year
  • Payments: Payments are not required during the established loan term, but loans must be paid in full by end of the loan term, otherwise penalties apply.
  • Payment Process: Loan payments will be made directly by borrowers to Florida First Capital Finance Corporation, the State of Florida appointed program administrator.
  • Non-Payment Penalties: Penalties for non-payment will begin at the expiration of the established term of each loan, and will be as follows:
    o 12% per annum on the unpaid balance thereafter until the loan balance is repaid in full.
    o Default is subject to normal commercial collection process.
  • Loans will be made to individuals who, individually or collectively, own at least 51% of the equity of the business.
  • Only one loan per eligible business
  • A borrower will be required to sign an agreement that the proceeds of the loan will be used only for purposes of maintaining or restarting the business in the designated area. Use of proceeds to pay off debts already incurred for qualifying business
  • There is no penalty for early payment of your bridge loan.

When is the Application Deadline?
Applications for Florida Small Business Emergency Bridge Loan Program be accepted under through May 8, 2020, contingent on the
availability of funds.

 

How can I apply ?
Contact us by calling 305-749-5299 or e-mailing apply@gokapital.com. Our financial consultants will assist you in preparing and submitting all relevant loan documentation throughout the entire application process. For further information on application fees associated with the processing of this loan, please visit the Apply Now section below.

Loan Program Instructions

Checklist for Documents to Complete the Florida Small Business

Supply all required supporting documentation:

    • Business Tax Returns (2018-2019) – At a minimum, copies of the previous two years federal income tax returns for the applicant business, including all schedules.
    • Employer Tax Documentation, i.e., IRS Form 941, IRS Form, IRS Form W-2s and/or IRS Form 1099-MISC for a minimum of two employees.
    • Individual Tax Returns: At a minimum, copies of the previous two years federal income tax returns (IRS Form 1040 and all schedules).

Applicant may also provide the following additional information to assist the loan committee in making an informed loan decision:

  • Interim financial statements (profit & loss) for the current year-to-date.
  • Additional filing requirements providing monthly sales figures.
  • Explanation of credit report concerns and issues.

Other documents that may be included in the application:

  1. Valid ID for each owner.
  2. Current county business license.
  3. Previous 6 months bank statements of all business accounts.
  4. Income statement from the previous three years.
  5. Personal financial statements of owner(s).
  6. Business financial statements of owner(s).
  7. Business liability policy.
  8. Listing of all outstanding liabilities.
  9. Listing of all outstanding liabilities.

For questions regarding the Florida Emergency

BRIDGE LOAN PROGRAM

Please contact GoKapital at 1-866-257-2973 or apply@gokapital.com

Eligibility & Loan Process

  1. Applicant (eligible business owner(s)) completes and signs the application form and gathers required support documents.
  2. Applicant submits the completed application and supporting documentation
  3. The applicant’s eligibility, identification, completeness of application and supporting documentation will be reviewed. If the applicant is deemed to be eligible, and the application and support documentation are complete, a personal credit report for each applicant from Florida First Capital Finance Corporation (state appointed fiscal administrator of the program) and forward all materials to the Loan Review Committee for loan consideration. If the applicant is eligible, the applicant will be notified. If the application or supporting documentation is incomplete, or the loan review committee requests additional information, we applicant will also be notified.
  4. The Loan Review Committee will review materials and approve or deny the loan request. Note: the decision concerning the granting of a loan is that of the independent loan review committee.
  5. We will notify the applicant of the decision of the Loan Review Committee.
  6. If approved, we will assist in further preparing the loan closing documents for the distribution of loan proceeds. If not approved, the applicant will receive written notification from the Florida state entity handling disbursement of loan funds.

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Loan Closing

  1. Loan Recipient: Loans will be made to individuals who are at least 51% owners of the business.
  2. Use of Proceeds: A borrower will be required to sign an agreement that proceeds of the loan will be used only for purposes of maintaining or restarting the business in the designated area. Use of proceeds to pay off debts already incurred for qualifying business maintenance or restart purposes may be authorized on a case-by-case basis.
  3. Dedicated Sources of Repayment: A borrower will be required to certify that the proceeds of insurance claims, other loans applied for or to be applied for, or other financial assistance will be used to repay the loan.
  4. Closing Documents: Closing documents, prepared by the Program Administrator and provided to the applicant at closing, will include:
    1. Promissory Note.
    2. Business Purpose Statement.
    3. Loan Settlement Statement.
    4. Assignment of Proceeds from other Sources.
    5. Closing Checklist.
    6. Payment Coupon.