Florida's economy ranks among the largest in the world, making it a challenge for small businesses that are starting up because of the fierce competition. According to the Small Business Administration Office of Advocacy, there are around 2.8 million small businesses in Florida, employing over 41.1% of employees.
Also, The Department of Financial Services reported that in the second quarter of 2020, the United States experienced 5.4% gross domestic product growth, while Florida had a rate of 6.3%, ranking it 10th out of all 50 U.S states by growth rate.
With this, we can see just how important small businesses are for Florida, and having access to funds is fundamental to their success. If you are one of these small businesses, we want to help you explore the good options for local funding in Florida and understand what you need to apply. Below we will explore how to get a business loan or other types of business financing in Florida and what are some other top funding options for your small business.
What do you need as an owner to apply?
It's essential to cover the basics regarding what your business needs to have ready to apply for loans or working capital. First, you must verify that you have registered your business correctly so that you can ask for a business loan or financing, not personal funding. The most common types of businesses are sole proprietorships and LLCs.
Additionally, you have to check you meet all the permits and licenses according to the nature of your business. Nonetheless, in Florida, most companies require a professional or occupational license and a sales and use tax permit. Once you have made sure these are in order, let's consider Florida's business loans and funding program opportunities.
In the case of many alternative funders, you'll require to be in the business for at least three months to one year and your annual or monthly revenue statements. An excellent credit score is not a strict requirement, but it will be a variable in the process of underwriting your business for financing.
Top small business loan opportunities in Florida
If you own a small business, you're probably aware of the common practice of many banks refusing to fund small businesses. Suppose you have difficulty locating small business loans in Florida. In that case, you have several viable options, from a local funding solution to national funding institutions and alternative funding programs for your Florida small business.
Most alternative funding platforms make it easier for small business owners to obtain the financing they require. Furthermore, terms are usually more flexible, allowing you to figure out what works best for your operation without being locked into a difficult situation. Below we will explore alternative funding programs and business loans available in Florida.
Enterprise Florida State Small Business Credit Initiative
Enterprise Florida is one of the most popular credit initiatives. The goal of Enterprise Florida, a public-private partnership that provides small business owners with loan participation and guarantee programs, is to boost employment and diversify the state's economy.
They have an initiative called the State Small Business Credit Initiative, which intends to increase Florida's small business owners' access to funding by providing participation loans, meaning they don't fund money. Instead, they provide funds to several Florida commercial funders, who fund money to startups and small enterprises with less than 500 employees.
Enterprise Florida Microfinance Guarantee Program
Enterprise Florida also offers The Microfinance Guarantee Program. If you want to qualify for a guarantee program, your small business must have 25 employees or less and have generated $1.5 or less in average annual revenue for the past couple of years.
Participating lenders fund these loans; therefore, there might be additional criteria you need to satisfy. If they meet the requirements, small firms can borrow from $50,000 to $250,000 with a guarantee of up to 50% of the total loan amount. With this term loan, you have up to three years to repay the debt.
Florida Black Business Loan Program
The Black Business Loan Program is an excellent choice for your business if you're looking for cash for your minority-owned small business in Florida. This program gives black-owned companies who cannot access funding through traditional funding institutions. Still, it would otherwise be able to compete successfully in the private sector loans, loan guarantees, or investments through Loan Administrators.
This program offers small business loans for black business owners with Florida-based companies ranging from $2,500 to $75,000. Loans up to $150,000 may also be made available in certain situations, though the program doesn't specify the circumstances. It's important to mention that your company must be based in Miami-Dade County to collaborate with the Miami Bayside Foundation and be held at least 51% of your company by black entrepreneurs.
Accion Opportunity Fund
Finally, the Bank of America and Goldman Sachs, among other institutions, support the Accion Opportunity Fund, a financial assistance system for small enterprises that promote economic, racial, and gender equity. Again, small company loans are available from this group to business owners who might not have access to more conventional finance sources.
Owners of small businesses can be eligible for loans between $5,000 to $100,000. The typical repayment period is up to five years, and the interest rate is 5.99%. To aid in expanding your business, the organization also provides a variety of mentoring and other initiatives.
Alternative business funding programs
Lastly, there are alternative funding programs. Other than conventional bank loans, getting money for your business is known as alternative funding. If you have had trouble getting a b business loan in the past, have subprime credit, or need working capital fast to fulfill a project, you may want to look into some of these alternative funding options, many of which are available online.
Are you considering an alternative business funder? One Park Financial is an excellent option for alternative funding in Florida. If you're having problems locating small business loans in Florida, don’t look any further: we can help. As an alternative funding program, we make it simpler for small business owners to get the funding they require. Our conditions are more flexible as long as you have been in the company for at least three months and generate at least $7,500 per month in revenue.
All you need to do is check if you prequalify by filling out our form, and one of our experts will discuss your business needs with you and options to determine what funding types best meet your needs.
Disclaimer: The content of this post has been prepared for informational purposes only. It is not intended to provide and should not be relied on for tax, legal, or accounting advice. Consult with your tax, legal, and accounting advisor before engaging in any transaction.