STATE SMALL BUSINESS CREDIT INITIATIVE (SSBCI) |
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The Background |
Created as part of the Small Business Jobs Act of 2010, SSBCI was designed by the federal government to help states strengthen existing loan and equity programs and/or create new programs that support financing small businesses. Florida received a total SSBCI allocation of $97,662,349. |
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The primary objective of Florida's SSBCI Program is to leverage private capital for Florida's small businesses, which are defined as businesses with 500 employees or less. After five years, Florida must show that, taken together, $10 in new small business lending or investment was generated by every $1 in SSBCI funding. Therefore, Florida's SSBCI Program is anticipated to generate at least $976,623,490 in new private capital for Florida's small businesses. |
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| Advantages to Florida's small businesses include: |
• | Access to debt and venture capital financing that may not otherwise be available |
• | A flexible and non-bureaucratic resource for funding |
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Advantages to Florida's lenders and sources of private capital include: |
• | Ability to approve a loan that would otherwise be declined |
• | Provides a non-competitor participant on providing financing |
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| The Components of Florida's SSBCI Program |
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Florida Venture Capital Program
Via the Florida Venture Capital Program, the Enterprise Florida-managed Florida Opportunity Fund provides equity investments and convertible debt instruments to emerging Florida companies (or companies locating in Florida) with perceived long-term growth potential. Emphasis is upon transactions within Florida's targeted industries, which include: |
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• | Aviation & Aerospace |
• | CleanTech |
• | Financial & Professional Services |
• | Homeland Security & Defense |
• | Information Technology |
• | Life Sciences |
• | Advanced Manufacturing |
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Equity investments and convertible debt instruments ranging from $1,000,000 - $5,000,000 are targeted, although larger transactions are permitted in exceptional cases. Each equity investment requires at a minimum, a matching concurrent private capital investment or other credit assistance. |
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For applications and additional information on venture capital financing, please visit www.floridaopportunityfund.com or contact Jennifer Dunham at 407.838.1400, ext. 215. |
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Loan Guarantee Program & Loan Participation Program
The Loan Guarantee Program and Loan Participation Program is available to qualified businesses that demonstrate adequate historical and/or proposed cash flow coverage and other credit underwriting metrics. Enterprise Florida will work with any financial institution to use these two programs as a credit enhancement to mitigate any perceived credit weaknesses on loans. As such, the following parameters would apply to loan guarantees and loan participation: |
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1. | The typical loan guarantee or loan participation will range between 5-20% of the total required financing. Only in exceptional circumstances will loan guarantees or loan participations up to 50% of the total required financing be permitted. |
2. | Loan guarantees and loan participations may range from $250,000 - $5,000,000. |
3. | The maximum loan term permitted is five (5) years. |
4. | Interest rates and fees are negotiable. |
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To apply for a loan guarantee or loan participation, please click here to access the application. Once completed, please print and sign the application and e-mail it to ssbci@eflorida.com. For additional information, please contact David Rodriguez at 407-956-5682. |
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504 Bridge Loan Program
The 504 Bridge Loan Program is a key sub-component to Florida's SSBCI Program. These loans will be processed by Florida First Capital Finance Corporation, working in conjunction with Enterprise Florida. |
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With SBA 504 Loans, lenders are permitted to finance equipment and owner-occupied real estate purchases up to ninety-percent (90%) of the total project cost. The lender makes such a loan with the expectation that the portion above 50% will be "taken-out" by a SBA-guaranteed note. However, there is often a timing difference up to 180 days between initial closing and that take-out. The 504 Bridge Loan Program will address this timing difference. Therefore, by removing this interim 90% financing risk for lenders, the 504 Bridge Loan Program will ultimately make more capital available for Florida's small businesses. |
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This particular program is targeted for transactions ranging from $250,000 - $5,000,000. The maximum loan term permitted is six (6) months. Transactions involving ground-up construction are ineligible. To apply for the 504 Bridge Loan Program, the lender may request an application by e-mailing ssbci@eflorida.com. For additional information, please contact David Rodriguez at 407-956-5682. |
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Export Loan Guarantees & Export Direct Loans
Export loan guarantees for Florida's exporting small businesses are available to assist in facilitating lower-cost export financing. Export loan guarantees will be underwritten by Florida Export Finance Corporation, working in conjunction with Enterprise Florida. |
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An average export loan guarantee or export direct loan of $500,000 or less is permitted, with larger transactions permitted in exceptional circumstances. The maximum term permitted is 12 months and the fee(s) are negotiable. |
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To apply for an export loan guarantee or export direct loan, please request the application by e-mailing ssbci@eflorida.com. For additional information, please contact David Rodriguez at 407-956-5682. |