Microfinance Guarantee Program

How does the Microfinance Guarantee Program affect Florida businesses?

The Microfinance Guarantee Program is a Florida-based initiative to support small businesses by providing access to loans and credit. It offers a guarantee to participating lenders to encourage them to provide loans to small businesses that may not qualify for traditional financing. This program assists Florida governments in promoting economic development and fostering business growth.

The Microfinance Guarantee Program can be a lifeline for Florida businesses, allowing them to access much-needed capital for expansion, purchasing equipment, or maintaining operations. By removing some of the barriers to financing, the program empowers small businesses to grow and create jobs, ultimately contributing to the state’s economic development.

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Which Florida laws and regulations apply to the Microfinance Guarantee Program?

The Florida legislature created the Microfinance Guarantee Program by enacting Section 288.9935 of Florida Statutes. As a result, the Microfinance Guarantee Program falls under the purview of the Florida Department of Economic Opportunity (DEO), which is responsible for administering the program and ensuring compliance with all relevant laws and regulations. The DEO partners with a network of participating lenders to provide loans to qualifying small businesses. These lenders must follow the guidelines and criteria the DEO sets, including the maximum loan amount and the eligible use of loan proceeds.

Which Florida businesses qualify for the Microfinance Guarantee Program?

Businesses must meet the following requirements:

• Be a for-profit, small business operating within the state of Florida;
• Have a business plan showcasing the need for financing and the ability to repay the loan;
• Demonstrate that the business cannot obtain traditional financing;
• Employ fewer than 25 employees; and
• Have annual gross revenues of up to $1.5 million.

When a set of facts is appropriate to meet the requirements of the Microfinance Guarantee Program, there are many paths a claimant may take. We are value-based attorneys at Jimerson Birr, which means we look at each action with our clients from the point of view of costs and benefits while reducing liability. Then, based on our client’s objectives, we chart a path to seek appropriate remedies.

To determine whether your unique situation may necessitate litigation, please contact our office to set up your initial consultation.

What are the strategic benefits for qualifying Florida businesses?

• Qualifying Florida businesses can expect to enjoy several strategic benefits by participating in the Microfinance Guarantee Program:
• Access to Capital: The program enables small businesses to secure loans that may not be available through traditional financing channels.
• Job Creation and Retention: By providing access to capital, the program supports small businesses in creating and retaining jobs, strengthening the local economy.
• Business Growth and Expansion: With the necessary financial resources, small businesses can invest in expansion, new equipment, or other growth initiatives.
• Credit-building opportunity: Responsible use of the loan can help improve the creditworthiness of the small business, making it easier to obtain future financing.
• Customized Loan Terms: Participating lenders in the Microfinance Guarantee Program can offer more flexible loan terms tailored to meet the specific needs of the small business.
• Reduced Risk for Lenders: The program’s guarantee reduces the risk to lenders, encouraging them to provide loans to eligible small businesses.

Please contact our office to set up your initial consultation to see what actions or defenses may be available for your unique situation.

Frequently Asked Questions

1. How does the Microfinance Guarantee Program support small businesses in Florida?

This program encourages lenders to provide loans to eligible businesses that may have difficulty obtaining traditional financing. By reducing the risk to lenders, the program helps stimulate economic growth and job creation within the state.

2. What types of businesses are eligible for the Microfinance Guarantee Program in Florida?

Eligible businesses for the Microfinance Guarantee Program must meet specific criteria, such as being a for-profit enterprise, operating within Florida, and having fewer than 25 employees. Additionally, the business must have annual gross revenues of up to $1.5 million and demonstrate an inability to secure traditional financing.

3. How can a small business in Florida apply for the Microfinance Guarantee Program?

To apply for the Microfinance Guarantee Program, a small business must first identify a participating lender in Florida. The business owner should then present a comprehensive business plan and financial statements, illustrating the need for financing and the ability to repay the loan. The participating lender will review the application and, if approved, will work with the small business to determine appropriate loan terms and conditions.

Have more questions about an economic development-related situation?

Crucially, this overview of the Microfinance Guarantee Program does not begin to cover all the laws implicated by this issue or the factors that may compel the application of such laws. Every case is unique, and the laws can produce different outcomes depending on the individual circumstances.

Jimerson Birr attorneys guide our clients to help make informed decisions while ensuring their rights are respected and protected. Our lawyers are highly trained and experienced in the nuances of the law, so they can accurately interpret statutes and case law and holistically prepare individuals or companies for their legal endeavors. Through this intense personal investment and advocacy, our lawyers will help resolve the issue’s complicated legal problems efficiently and effectively.

Having a Jimerson Birr attorney on your side means securing a team of seasoned, multi-dimensional, cross-functional legal professionals. Whether it is a transaction, an operational issue, a regulatory challenge, or a contested legal predicament that may require court intervention, we remain tireless advocates at every step. Being a value-added law firm means putting the client at the forefront of everything we do. We use our experience to help our clients navigate even the most complex problems and come out the other side triumphant.

If you want to understand your case, the merits of your claim or defense, potential monetary awards, or the amount of exposure you face, you should speak with a qualified Jimerson Birr lawyer. Our experienced team of attorneys is here to help. Call Jimerson Birr at (904) 389-0050 or use the contact form to schedule a consultation.