Monthly the Miami-Dade Chamber of Commerce meets to provide members with technical business assistance. The virtual meeting for the month of April kicked off with a flurry of information on economic relief for small businesses owners.
G. Eric Knowles, President of the Miami-Dade Chamber of Commerce was joined by
Matthew A. Pigatt, Minority & Small Business Manager, Michelle Adderley, Financial Consultant, and Althea Harris, Assistant District Director for Marketing and Outreach for the U.S. Small Business Administration to provide members with information to Secure the Bag.
The 90-minute session provided information on the SBA Economic Injury Disaster Loan, SBA $10K Advance on the Economic Injury Disaster Loan, Florida Small Business Bridge Loan, and the Payment Protection Plan.
The Economic Injury Disaster Loan (EIDL) offered through the Small Business Administration is the Federal Government's primary funding assistance program. Small businesses and nonprofits have an opportunity to apply for substantial economic injury up to $2 million as a result of COVID-19.
The up to $10,000 advance is offered to small business who have applied for the Economic Injury Disaster Loan Program and unlike any other funding source it is a grant. It will not have to be repaid. To qualify you must have less than 500 employees. The SBA says that "this advance may be available even if your EIDL application was declined or is still pending, and will be forgiven."
The Florida Small Business Emergency Bridge Loan was one of the first lending programs in the wake of the Coronavirus for small business assistance. It was framed to be a bridge for owners and is administered through the Florida Department of Economic Opportunity (DEO).
In a statement released by the DEO the Bridge loan was established "to provide cash flow to businesses economically impacted by COVID-19. The short-term, interest-free loans help bridge the gap between the time the economic impact occurred and when a business secures other financial resources, including payment of insurance claims or longer-term Small Business Administration (SBA) loans. Up to $50 million has been allocated for the program."
The Paycheck Protection Plan was signed into congress on March 27th as the Coronavirus Aid Relief and Economic Security Act (Cares Act). The maximum loan amount is based on 2.5 x your average monthly payroll. This grant is administered by your small business banker.
All Small Businesses who have been adversely affected by the Coronavirus can find relief in the #ppploan according to the SBA because it is a grant. "The loan will be fully forgiven if the funds are used for payroll costs, interest on mortgages, rent, and utilities (due to likely high subscription, at least 75% of the forgiven amount must have been used for payroll). Loan payments will also be deferred for six months. No collateral or personal guarantees are required. Neither the government nor lenders will charge small businesses any fees."