STATEWIDE — Spectrum News has broken down some of the main state and federal loans meant to help small businesses negatively impacted by the coronavirus pandemic.

Paycheck Protection Program

Congress’ CARES Act establishes a new $349 billion Paycheck Protection Program, meant to keep small businesses sustained and workers employed.

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Under the new loan program, small businesses can receive a loan of up to $10 million. The first payment will be deferred for six months. 

The Small Business Administration (SBA) will forgive the portion of the loan proceeds used to cover the first eight weeks of payroll costs, rent, utilities and mortgage interest. It’s anticipated that no more than 25 percent of the forgiven amount may be for non-payroll costs, due to likely high subscription. 

All loans have an interest rate of 0.5 percent. There are no borrower or lender fees to the SBA.

Businesses with 500 or fewer employees are eligible. The program begins Friday.

For more information, click here. 

SBA Economic Injury Disaster Loan

Economic Injury Disaster Loans (EIDLs) are meant to cover small business operating expenses after a declared disaster, such as COVID-19.

Under this loan program, businesses can receive up to a $2 million, long-term loan. Individual loan amounts are determined by SBA. 

Eligible small businesses are independently owned and operated, with up to 1,500 employees. SBA can also determine small business status by revenue. 

Interest rates are 3.75 percent for small businesses and 2.75 percent for non-profits. Payment can be deferred for up to one year. Borrowers have up to 30 years to pay off the loan.

The deadline to apply is December 18, 2020. For more information, click here.

Florida Emergency Bridge Loan

The Florida Small Business Emergency Bridge Loan Program is available to small business owners in Florida that have faced economic hardship due to COVID-19.

This one year, interest-free loan is up to $50,000, but loans of up to $100,000 can be given out in special cases.

Small businesses with two to 100 employees are eligible. Independent contractors also qualify as employees. 

If the loan is not paid off in one year, the rate goes to 12 percent per year.

This loan is meant to bridge the gap between the time a major catastrophe hits, like the coronavirus, and when a business has secured longer-term recovery resources, such as federal disaster assistance.

Business owners must have paid off any prior loans from the state’s emergency bridge loan program to be eligible.

Applications will be accepted through May 8, 2020, or until funds run out.

For more information, click here.