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 GulfCoast Business Finance, Inc. also administers the state’s Small Business Emergency Bridge Loan Program within certain counties of the state and it can assist in locating lenders who process the SBA’s 7(a), Community Express and Emergency Disaster loan programs.
Post-Disaster Bridge Loans
Small Business Emergency "Bridge Loans" are for entrepreneurs that incur significant physical damage to their business from a natural disaster, like a hurricane. These short-term bridge loan funds can be approved in a matter of days following a disaster and amount to $25,000.
The bridge loan program is designed to provide quick cash flow to businesses so they can get their businesses back into operation immediately following a disaster.
The loans are interest-free and are payable in 180 days. To be eligible, a business owner must have been operational for one full year prior to the disaster and have verifiable physical damage to their business. Bridge loans are not available for economic injury due to decreased sales or temporary closure.
GulfCoast Business Finance became involved in this program in 2004 after Hurricane Charley and now continues it in Sarasota, Manatee and Charlotte counties. We then help connect businesses to other SBA programs for long-term post-disaster financial aid.
7(a)
7(a) loans are the most basic and most used of SBA's business loan programs. The name comes from section 7(a) of the Small Business Act.
All 7(a) loans are available on a guaranty basis, meaning they are provided by lenders that receive a guaranty from SBA on a portion of the loan. The applicant must be both eligible and creditworthy. Showing repayment ability from the cash flow of the business is a primary consideration, but good character, management capability, collateral, and owner's equity are also important considerations.
CRF
Though the SBA 504 criteria is comprehensive, not everyone fits into this program. For those who don’t, we also have the Community Reinvestment Fund (CRF) program for you to consider.
General Criteria:
- Established business
- Owner-occupied facility
- Management experience
- Debt service coverage
CRF assists for-profit and non-profit businesses looking to expand. Projects can range from $50,000 to $5.0 million.
To participate, a business must have a two-year positive cash flow operating history, show a good credit history, and must occupy a majority of the space it is leasing or owns. In order to qualify for CRF’s New Markets Tax Credit program, a business must be located in a census track that meets certain poverty, median family income, or unemployment levels. The project must also demonstrate a positive community impact, including job creation, area revitalization or stabilization.
CRF real estate loans can extend for 20 to 25 years, and the interest rates are fixed for the term of the loan.
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Community Express
Community Express is a pilot SBA loan program offered to pre-designated geographic areas serving mostly low and moderate income areas and New Markets small businesses. The program provides money quickly, but also includes technical and management assistance, which is designed to help increase the loan applicant's chances of success. The maximum loan amount is $250,000 with no need for collateral on loans up to $25,000. Borrowers receive pre- and post-loan closing technical and management assistance from local non-profit providers and/or from participating lenders. Community Express loans must meet the basic 7(a) loan criteria. |
