Financial Lifelines: Resources for Broward's Small Businesses During COVID-19

Updated: Apr 12


With an abundance of new resources for small businesses that have lost revenue from COVID-19, one can easily become overwhelmed with the complex menu of options. Learn how to navigate this new landscape with a list of programs that may be available to you and your small business.


Economic Injury Disaster Loan Program (EIDL)



The Economic Injury Disaster Loan Program (EIDL), as expanded under the Coronavirus Aid, Relief, and Economic Security (CARES) Act, enables the U.S. Small Business Administration (SBA) to provide loans of up to two million dollars to eligible small businesses, private non-profits, and faith institutions negatively impacted by COVID-19 to address their working capital needs.


EIDL loans for eligible small businesses may have terms of up to 30 years with 3.75% interest rates. Non-profits are likewise eligible for loans up to 30 years, albeit with interest rates at 2.75%. For those wishing to utilize EIDL loans due to loss of revenue from COVID-19, you may complete a streamlined application at sba.gov/disaster.


Emergency Loan Advance


Due to the significant and rapid loss of revenue from the COVID-19, advance loans of up to $10,000 are also available as part of the Economic Injury Disaster Loan (EIDL) Program. This $10,000 loan advance does not have to be repaid, provided the small business uses the funds on payroll costs for a period of eight weeks following the date of receipt of funds.. A small business may also use up to 25% of the loan amount on rent, mortgage, or utility obligations that occurred prior to February 15, 2020.


An important caveat to keep in mind regarding the emergency advance is that the SBA has implemented a $1,000 cap per employee on the advance, up to a maximum of $10,000. In other words, if your business has four employees, you would only be eligible to receive $4,000, as opposed to the full $10,000.


Paycheck Protection Program (PPP)


The CARES Act allocated $349 billion dollars for the Paycheck Protection Program, which provides financial assistance of up to $10 million dollars to eligible small business owners to make their payroll and retain or bring back laid off employees. Your business must have existed prior to February 15, 2020, and you may apply for these funds at participating banks and financial institutions through June 30, 2020 (or until funds run out).


Your lender will require you to submit documentation of payroll expenses, in the form of bank statements or tax returns, along with your initial application. The actual loan amount will be equal to your 2019 payroll averaged over 12 months and multiplied by 2.5, with a maximum loan amount of $10 million dollars.


In order to obtain PPP loan forgiveness or be eligible for additional funds, you must submit proper documentation to your lender proving you spent at least 75% of the loan on payroll costs. If you receive PPP funds but do not use them for eligible expenses, you will instead receive a loan with an interest rate of 1% and a two-year due date.


SBA Debt Relief


The SBA Debt Relief program can provide relief to small businesses as they work to stay afloat during the COVID-19 health crisis. Under this program, the SBA will pay both the principal and interest of new new 7(a) loans, 504 loans , and microloans for six months, provided that the loans are issued before September 27, 2020.


The SBA is also paying the principal and interest on current 7(a) loans for a period of six months. The purpose of this relief is to ease the cash flow of 7(a) loan holders so small business owners can pay employees and meet their other financial obligations for their business.


Florida Small Business Emergency Bridge Loan Program (EBL)


The Florida Small Business Emergency Bridge Loan Program provides one-year, interest-free loans up to $50,000 dollars to help bridge the gap until a small business can access more funding through the SBA’s Economic Injury Disaster Loan or from the Paycheck Protection Program.


A small business may be eligible to apply for short-term loans up to $50,000 if the business was established prior to March 9, 2020, employs between two and 100 employees, and can demonstrate economic harm due to COVID-19.


Where Can I Go For More Information?


As the roll out of these newly available resources under the CARES Act continues, keep in mind that it is likely that rules and requirements will change or undergo further modification.



For more information on COVID-19 relief and to get help with your small business in Broward County, please visit broward.org/econdev, or call (954) 357–6400.

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