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 could have to have been open for a full year before the oil spill on April 20. The business has to prove that it has been “physically or economically damaged by a catastrophe.”
How Florida bridge loans are being funded
The Florida bridge loans that are made available to companies are a part of a program activated by Governor Charlie Crist. The state of Florida has allocated $ 5 million for these unsecured personal loans. The loan program could be administered through the Governor’s Office of Tourism, Trade and Economic Development. The Florida First Capital Finance Corporation is also helping provide the administration for these short-term business loans.
Federal loan possibilities for damaged businesses
There are a wide range of services and financial assistance loans accessible to companies that are affected by the oil spill. The federal loans are Small company Association loans, and last for 30 years with low interest. These longer-term loans have about a four percent or so rate of interest, and are considered short term loan. The SBA is recommending that business owners take out these low interest loans rather than waiting to settle with insurance or BP. Part of getting an SBA emergency loan, though, is promising that any settlement from BP be used to pay off part or all of the principle of the SBA loan.
