Miami-Dade County is launching a $25 small business micro-loan program. It is initially targeted to help small businesses hurt by the economic disruption caused by the pandemic,
The Rise Miami-Dade program is designed to help small businesses that haven’t been to get other economic aid. The county will use community groups to screen applicants for the low-interest loans, according to the Miami Herald. County commissioners approved the program this week.
The loans are capped at $30,000. They are limited to for-profit Miami-Dade headquartered companies in business for at least 2 years with less than $2 million in annual sales and fewer than 25 employees.
The loans will be for three years and the interest rate will be the same as the Prime, which is currently 3.25%. The loans require a credit score of 575 or above. It’s important to note that personal guarantees are also required of all business owners who have at least a 20 percent stake in the business. Find more criteria here.
Miami-Dade hopes that the loan fund will become a permanent fixture of its small business offerings, lasting long after the pandemic recedes. Federal money tied to the coronavirus pandemic will seed the fund. Miami-Dade also will seek corporate sponsorships and community grants to grow the revolving small business loan fund.
The application process will launch in coming weeks. Find out more here: risemiamidade.com.
Miami-Dade previously launched a $5 million fund to offer forgivable loans up to $25,000 to help small businesses hurt by the pandemic. Read more about that program here.