Since 2020, state and federal laws prohibiting evictions have protected residential tenants. However, commercial tenants were not included in moratoriums so crucial for their survival. This omission left many of Florida’s 2.5 million small businesses afloat with no way to continue operating. Recent movements by the Florida legislature might give the eviction relief many small businesses need.
Potential Eviction Relief on the Way
As government shutdowns cut into business revenue, Florida business owners found it difficult to pay expenses, including rent and lease payments. Despite the closure of government offices and courts, some landlords threatened commercial tenants with eviction.
Recently, Florida lawmakers proposed two bills to help certain small businesses facing eviction – House Bill 1469 and Senate Bill 2002. If enacted, these laws propose to create a $543 million rent stabilization fund (the “Fund”).
The Fund is intended to help tenants avoid eviction while providing landlords with money to cover their rents. The actions proposed are similar to existing programs in Orange and Osceola counties. But those programs only protected residential evictions.
Who Qualifies?
The definition of “small business” ranges from one-person shops to companies with hundreds of workers. For purposes of the Fund, only the following small businesses are eligible:
- Companies that make less than $250,000 a year in profits, AND
- Have seen at least a 25% decline in revenue.
Since the bills are not law yet, we don’t have news about the application process for this eviction relief program. However, the Department of Economic Opportunity is expected to handle applications and disburse funds to approved applicants.
Here’s How it Works
Small businesses that meet the criteria mentioned above can apply to the Fund. If approved for eviction relief, the Fund will cover half of the back rent owed by the small business. Landlords and tenants will handle the rest of the back rent as follows:
- Landlords agree to forgive 25%,
- Tenants agree to pay 25%.
This type of eviction relief for small businesses could benefit both landlords and small businesses. Commercial tenants could avoid eviction while landlords get the revenue they need to continue operating themselves.
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.