Small business owners have several sources of COVID-19 financial relief. Add the SOAR Fund to the list that struggling Florida small businesses may use to get back on their feet.
But what is the SOAR Fund? It helps to understand the program before deciding it’s an option for your company.
A New Source of Funding and More for Florida Small Businesses
SOAR stands for Southern Opportunity and Resilience. The SOAR Fund launched in April 2021 with more than $50 million in initial commitments. Their long-term goal is to lend at least $150 million to support small businesses.
The program is intended to provide loans to underserved groups who may find it difficult to obtain loans from conventional sources. Community lenders willing to make the loans are paired with qualified applicants.
This program offers loans with terms like:
- For-profit businesses can get 4% interest on a five-year loan or 4.5% interest on a six-year loan.
- Nonprofit businesses can get 3% interest on a five-year loan or 3.5% on a six-year loan.
Loans can be made for the lesser of $100,000 or 100% of their revenue for any three-month period during 2019 or the first quarter of 2020.
The SOAR Fund also offers free business support to borrowers.
Qualifying for a Loan with the SOAR Fund
The SOAR Fund only offers loans to small businesses of less than 50 employees, but there’s a geographic requirement also. Applicants must be located in one of the following areas:
Alabama, Arkansas, Delaware, Florida, Georgia, Louisiana, Maryland, Mississippi, North Carolina, Oklahoma, South Carolina, Tennessee, Texas, Virginia, West Virginia, and the District of Columbia.
Another requirement involves how long a business has been in operation. Qualified applicants must have been in business since at least September 2019.
The SOAR Fund Automatically Disqualifies Some Businesses
The following types of businesses will not qualify for a loan, even if they meet all other requirements:
“corporate-owned franchises, branch banks, payday loan stores, astrology or palm reading businesses, adult bookstores, strip clubs or track wagering facilities.”
As long as your Florida small business meets the SOAR Fund’s requirements and is not one of the businesses listed above, the SOAR Fund might be a good source of COVID-19 financial relief.
About the Author
Attorney Richard Sierra at the Florida Small Business Center assists clients like you with business and litigation matters. As always, Our Goal Is to Help You Succeed™. For an appointment, you may call us at 1-866-842-5202 or use the contact form on our website. We represent clients throughout the State of Florida, including Coral Springs, Coconut Creek, Boca Raton, Delray Beach, Pompano Beach, Sunrise, Fort Lauderdale, Miami, West Palm Beach, Jupiter, Deerfield Beach, Stuart, Port St. Lucie, Orlando, Naples, Fort Myers, Sarasota, Tampa, and surrounding communities.