Companies in Florida counties that are affected by the oil spill can now get state-sponsored short term loans. The loans are a part of Florida’s emergency relief program. These interest-free loans could be taken out in combination with installment loans for bad credit offered by the Small business Administration.
Bridge loans – how Florida companies can qualify
The cash advance payday loans available under Florida’s bridge loan system are interest-free. These loans offer up to $ 25,000 for a one-year time period with no interest. These loans are intended just for small companies – with less than 100 employees. In order to qualify for these loans, a business will have to are open for a full year before the oil spill on April 20. The business has to prove, as well, that they have been “physically or economically damaged by the catastrophe.”
How Florida bridge loans are being funded
The Florida bridge loans that have been made available to companies are a part of a program activated by Governor Charlie Crist. These short term bridge loans have been funded with $ 5 million from the Florida general fund. The loan program will be administered through the Governor’s Office of Tourism, Trade and Economic Development. Administering these loans is going to also be shared by the Florida First Capital Finance Corporation.
Damaged companies also qualify for federal loans
The one-year no-interest loans offered in Florida are not the only financial assistance available to companies hurt by the oil spill. The federal loans are Small business Association loans, and last for 30 years with low interest. With loan rates as low as four percent, these short term loan are federally-supported. Before BP or insurance pays up, the SBA suggests business owners get this loan in order to fill the gap. Part of getting an SBA emergency money, though, is promising that any settlement from BP be used to pay off part or all of the principle of the SBA loan.
