HomeMy WebLinkAboutExhibit BCity of Miami
Small Business Emergency Loan Program II
This is a forgivable loan if applicant can retain a job for a low -to moderate -income person for a period
of no less than 6 months.
The City of Miami ("City") hereby establishes the Small Business Emergency Loan Program II ("Program") with the goal of
supporting eligible for -profit and non -for -profit businesses that meet the required criteria below due to loss of income as a result
of the COVID-19 pandemic (hereinafter each referred to as an "Eligible Business"). This Program will be capitalized utilizing
federally allocated Coronavirus, Aid, Relief, And Economic Security ("CARES") Act Community Development Block Grant
Coronavirus ("CDBG-CV") funds. The goal of this Program is to provide eligible business owners with a loan not to exceed $35,000
or 20% of their gross revenue, whichever is less, to reimburse for certain expenditures that allow such eligible businesses to
remain viable and operational. Annual gross revenue for each eligible business must not exceed $2,000,000 as determined by the
business tax return submitted to the IRS for 2019.
Funds will be awarded on a first -come, first -ready, first -serve basis until funds are fully expended or until the end period of funding
availability, whichever occurs first.
Eligibility Criteria
To be determined as an "Eligible Business", each applicant must be a for -profit business. Not -for -profit businesses do not qualify
for CDBG-CV assistance as prescribed by U.S. Department of Housing and Urban Development ("HUD") regulations. In order to
qualify, the small business must:
■ Be a for -profit business currently open for business located within the boundaries of the City of Miami with more than 5
employees, but no more than 20 employees.
■ Be a business registered with the State of Florida prior to September 1, 2019.
■ Business must be able to retain at least one (1) job for a low to moderate income person for a period of no less than 6
months (24 CFR 209(b)(1)(i)).
■ Must have suffered a loss of business income as a result of the COVID-19.
■ Must possess and be current with City of Miami Certificate of Use/ Accessory of Use and Business Tax Receipts.
■ Must not be a business that already received financial assistance (grant, loans, etc.) from any other City of Miami business
assistance program or any other COVID-19 related financial assistance (grant, loans, etc.) from any other federal, state, or
local program to pay for the same expenses.
■ Be current in all financial obligations with the City of Miami.
Job Retention Criteria
■ All loans will require applicant to retain one, full time equivalent, permanentjob held by a low -to -moderate income person
for every $35,000, or parts thereof, loaned.
Eligible Use of Funds
■ Payment of Business Rent or Mortgage.
■ Payment of Utilities, Licenses, and/or Business Insurance.
■ Payment of Employee Salaries.
Ineligible Businesses
■ Not -for -Profit Businesses (24 CFR Part 570.203).
■ Businesses with less than 5 employees (W-2 workers only).
■ Businesses engaged in legal gambling activities and or in illegal activity.
■ Businesses whose primary source of revenue is more than 75% derived from the sale of packaged alcoholic liquor. Businesses
that present live performances of a sexual nature or engage in the sale of products or services, or the presentation of any
depictions or displays, of a sexual nature.
■ Other ineligible businesses as determined solely by the City of Miami.
Loan Terms
No payment will be required if jobs are retained for a minimum of 6 months; otherwise, loan will be fully amortized for 5 years
at 0% interest with no payment required in the first 12 months.
NOTE: Guidelines, forms, and other documents related to these programs are subject to change from time to time to ensure
proper utilization of public funding.