Florida is an excellent place to own a small business, especially for entrepreneurs looking for a variety of financing options. Small business loans can provide funding for several purposes, ranging from expansion projects to unexpected expenses.
Read on to discover feasible options to secure a business loan in Florida.
How to Secure a Business Loan in Florida – Taking a Closer Look
Depending on the circumstances, it is not easy to meet the eligibility requirements to take out a loan and direct the borrowed amount to your business financing needs. Entrepreneurs must consider their options realistically with the guidance of an expert attorney.
Small Business Administration
The Small Business Administration (SBA) is a federal agency dedicated to providing assistance to small businesses nationwide, including different types of financing options.
The primary option for general business financing is the basic 7(a) loan, a program available for a wide range of business categories and segments. Other financing options include Internal Trade Loans and Export Working Capital Loans.
Enterprise Florida Financing Programs
Created to expand and diversify job creation in the state, Enterprise Florida is a public-private partnership between the state’s business and government leaders. Enterprise offers several funding programs for small businesses, including the Microfinance Guarantee Program.
To qualify for this funding category, a company must have 25 or fewer employees and have generated $1.5 million or less in average annual revenue in the past two years.
The lenders participating in the program also have specific requirements that applicants must meet. Once approved, entrepreneurs can borrow $50,000 to $250,000 upon providing a guarantee of up to half the final loan amount.
Another popular funding program is the State Small Business Credit Initiative. This system offers capital to commercial lenders in Florida, which provide loan funds to small businesses with fewer than 500 employees in exchange.
Florida Black Business Loan Program
An initiative of the Florida Department of Economic Opportunity, the Black Business Loan Program provides “loans, loan guarantees, or investments through Loan Administrators to black business enterprises that cannot otherwise obtain capital through conventional lending institutions.”
Depending on the borrower’s qualifications, it is possible to borrow between $2,500 to $150,000.
Florida’s State Small Business Credit Initiative (SSBCI) does not offer grants or direct loans. Instead, business owners the opportunity to borrow through the Small Business Loan Support Program from Community development financial institutions (CDFIs) and other approved lenders.
To qualify for the program, a Florida company must have less than 750 employees and use the funds for funding or startup costs, including expenses associated with equipment, inventory, real estate, franchise fees, etc.
This option allows applicants to borrow amounts starting at $250,000 and up to $5 million, with a repayment plan of five years. It is possible to apply for borrowing less than $250,000, but lenders determine an applicant’s eligibility based on each case.
Do You Want to Secure a Business Loan in Florida? – Immediately Seek Expert Legal Guidance
Identifying the best financing option for small businesses does not need to be overwhelming. Contact Attorney Romy B. Jurado today by calling (305) 921-0976 or emailing [email protected] to find a strategy tailored to your case.