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 have been open for a full year before the oil spill on April 20. The business has to prove, also, that they are “physically or economically damaged by the catastrophe.”
How the Florida unsecured loans are being funded
A program started by Charlie Crist is going to fund the Florida bridge loans. The state of Florida has allocated $ 5 million for these unsecured loans. Florida Governor’s Office of Tourism, Trade, and Economic Development is being tapped to administer these short term loans. The Florida First Capital Finance Corporation is also helping provide the administration for these short-term business loans.
Federal loan opportunities for damaged businesses
Businesses affected by the oil spill qualify for various types of financial assistance, including federal loans. The federal loans are Small company 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 cash loans, though, is promising that any settlement from BP be used to pay off part or all of the principle of the SBA loan.
