Loans Available due to COVID-19

How can you access to COVID-19 loans from

The Florida Small Business Development Center?

The Florida Small Business Development Center has activated emergency loans programs for small business owners located in all Florida counties statewide that experienced economic damage as a result of COVID-19. We will show you all the information about it and how you can access these loans.

Florida Disaster Bridge Loan:

This is an interest-free bridge loan from the State of Florida that will be up to $50,000 and will need to be repaid within the year to remain interest-free.  After the year, you will be paying 12% interest on this loan. 

The application process is described here and is submitted to the State of Florida:

SBA Express Loan:

This loan needs to be repaid back within 7 years, the maximum amount is $25,000 and should have the fastest underwriting/funding process compared to any other SBA-backed loan.  You will need to contact your bank directly to request this loan. 

Here is the full information from the SBA website dated 03/25/2020:

SBA Economic Injury Disaster Loan (EIDL):

These loans will have payment terms up to 30 years and an Interest rate of up to 4%; these loans are meant to be paid back and will not be forgiven.  Loan amounts vary and can be up to $2mm.

The application process is done directly through the SBA’s website:

It’s also important to note that there is a new streamlined process that gets you access to an advance to this loan for $10,000 within days of applying, so click on that link and follow the process.  Once you get access to the PPP loan (detailed below) you can roll over the EIDL into it if your business qualifies and potentially get it forgiven!

Paycheck Protection Program (PPP):

These loans are designed to be forgiven (essentially a grant with no strings attached) and are meant to be used for businesses that have employees and will maintain all their employees on payroll (even if you laid them off recently, you can bring them back to work).  The loan amount is capped at 2.5x your monthly payroll costs + health insurance for the rolling 12 months ending Feb 15th, 2020.  – In other words, your total payroll cost from Feb 16th, 2019 to Feb 15th, 2020 divided by 12 (avg. monthly payroll) is then multiplied by 2.5.   Then, after June 30th, you will need to prove that funds were used to pay payroll, rent, utilities, and essential payables owed by 2/15/2020; if those conditions are met and the total amount is the same or above the loan amount, the principal will be forgiven, essentially turning into a tax-free grant.

Application Terminology:

  • Covered Period: this is the 8-week covered period from funding (payroll costs and non-payroll costs)
  • Alternative covered Period: this is the 56-day period starting from following payroll run (payroll costs only)
  • Reference period: comparative or baseline periods used for FTE and Wage reductions
  • Non-Payroll Costs: “Rent, Mortgage Interest, and Utilities”

Reductions of Forgiveness:

  • Using less than 75% for Payroll: after Mortgage/Rent/Utilities is calculated, and capped at 25% of the loan, the balance needs to be spent in payroll… Balance not spent on payroll is not forgivable
  • Wage Reduction: Amounts above any employee getting more than 25% reduction of wages will be reduced from the forgiveness amount
  • FTE Reduction: decrease in headcount will reduce the forgiveness amount in the same proportion
  • EIDL Advance: ($1,000 to $10,000 SBA/Treasury Advance from COVID19 Disaster Loan) will reduce forgiven amount


New PPP Forgiveness Short Form Available Now:

  • If you are self-employed, independent contractor or sole proprietor and have no employees.
  • If you did not reduce wages of employees by more than 25% and did not reduce the numbers or hours of employees
  • If you did not reduce wages of employees by more than 25% and experienced reductions in business activity due to health directives related to Covid-19
  • Fill out form 3508EZ

If you need help getting your books up to date to file the application forms or have any doubt about the loan programs feel free to contact us.