More than 900k SMBs in Florida Have Received Financial Help Through PPP
By Sean Mills
- Even businesses that received the money in the first wave of loans can reapply for more help. The PPP application filing deadline is May 31.
More than 900,000 small businesses in Florida have received financial help through the Paycheck Protection Program (PPP) — and your business can too. To help the nation survive the COVID-19 pandemic, the federal government passed the CARES Act in March 2020 and offered $300 billion in Small Business Administration (SBA) loans. In December, a second stimulus package added another $284.45 billion to PPP and small businesses across the country getting the help they need to stay in business.
In Florida alone, a total of $48.8 billion PPP loans have been issued to 900,252 companies, according to FederalPay.org. The average company size for the loans is only seven employees, and the average loan amount is $54,248.
Even businesses that received the money in the first wave of loans can reapply for more help. The PPP application filing deadline is May 31. To be eligible for a loan, first-time borrowers must meet one of six requirements: they must have 500 or fewer employees; they must be the sole proprietor, an independent contractor, or an eligible self-employed individual; or they must be a non-profit. Also eligible are news organizations, visitor bureaus, or certain accommodation and food service operations that have fewer than 500 employees per physical location.
Second-time borrowers must have used all of their first loans, have 300 employees or less, or can demonstrate at least a 25% reduction in gross receipts between 2019 and 2020. There are certain restrictions on what exactly the money can be used for, according to FloridaSBDC.org. At least 60% must be used to compensate employees for either due wages, salary or leave time; or pay state or local taxes connected to compensating employees.
The other 40% of the PPP loan can be spent on things like rent, utilities, interest payments, and more. Loans are only available to businesses that were in operation as of Feb. 15, 2020. The amount of the loan will depend on a calculation of payroll costs and other factors. First-time borrowers can receive less than $10 million, while second-time borrowers can receive a maximum of $2 million.
To apply for a loan, you can search for a qualified lender in Florida at SBA.gov.
