Some Florida businesses qualify for zero-interest loans

State sponsored secured loans with zero interest are now being offered to businesses in Florida that are hurt by the oil spill. The loans are a part of Florida’s emergency relief program. These interest-free loans are offered in conjunction with U.S. federal government short term loan programs intended to help companies rebound from the oil spill.

Resource for this article: Short Term Bridge Loans offered to Florida businesses By Personal Money Store

Qualifications for the Florida bridge loans

The short term personal loan available under Florida’s bridge loan system are interest-free. These loans are $ 25,000 and can last for up to one year with no interest. Because these loans are intended for small companies, they could be offered only to businesses with 100 or fewer employees. Finally, these loans are accessible only for companies that are open for one year or more before the April 20 oil spill. The business has to prove, also, that they are "physically or economically damaged by the catastrophe.”

How Florida bridge loans are being funded

The Florida bridge loans that have been made available to businesses are a part of a program activated by Governor Charlie Crist. These short term bridge loans are funded with $ 5 million from the Florida general fund. These short term loans are likely to be administered by the Governor's Office of Economic Development. The Florida First Capital Finance Corporation is also helping provide the administration for these short-term business loans.

Damaged businesses also qualify for federal loans

Companies affected by the oil spill qualify for several types of financial assistance, including federal loans. The federal loans are Small company Association loans, and last for 30 years with low interest. With loan rates as low as four percent, these installment loans are federally-supported. The SBA is recommending that business owners take out these low interest loans rather than waiting to settle with insurance or BP. Getting an SBA loan, though, means promising to use any BP settlement to pay off that loan.