Federal and state help available to businesses hurt by red tide

Gail Loefgren, the president of the Longboat Key Chamber of Commerce, sums up the red tide outbreak this summer in one word.

“Killer.”

A red tide survey, sent to more than 300 chamber members, determined that out of 96 responses, a cumulative total of $3.16 million was lost by local businesses between Aug. 1 to Oct 2.

“Businesses have been devastated,” she said.

The survey showed 80% of the respondents said their business was down from the previous year. Also, 32% said red tide caused revenue to decline by more than half, mostly from cancelled reservations. The survey said 16% reported no change in business and 4% said business was up from last year.

Because businesses are still struggling to make up lost revenue, Loefgren recently had Bruno Kapacinskas, Manatee County’s Business Resource Manager, come to the chamber’s office to talk about financial relief – both on the federal and state levels – that is available to people whose bottom line has been impacted by red tide.

“There’s no one typical businesses that has been hurt by red tide,” Kapacinskas said. “I’ve seen boat captains, kayak companies, retailers. Nobody is staying in hotels. It’s a trickle-down effect.”

Kapacinskas said the federal government through its Small Business Administration has an Economic Injury Disaster Loan available, where a person can borrow his economic injury, or the financial needs of the company.

EIDL loans are capped at $2 million each and the term cannot exceed 30 years, he said. There are also no closing costs. The repayment term will be determined by the applicant’s ability to repay the amount borrowed.  For EIDL loans that exceed $25,000, collateral is required from the borrower.

To apply, go to disasgterloan.sba.gov. The deadline to apply is June 4, 2019.

“The money is straight from the U.S. Treasury,” Kapacinskas said.

The state of Florida, meanwhile, is offering a Small Business Bridge Loan Program through its Department of Economic Development in collaboration with Florida First Capital Financial Corp. and the state Small Business Development Corp.

These loans, which are interest free for up to 180 days. Loan applicants must be an employer with a minimum of two and a maximum of 100 employees. Loan amounts are between $1,000 to $50,000. After 180 days, the interest rate is 18%.

The deadline to apply for a state bridge loan is Dec. 16. For information on this program go to floridadisasterloan.org.

Since Oct. 13, around $1.6 million in state and federal funds have been loaned to small businesses in Sarasota, Manatee, Lee and Pinellas affected by red tide,. Kapacinskas said.

“Small business owners don’t want a hand out,” Kapacinskas said. “They are looking for a hand up.”