By Alejandro Carrera
With tourism contributing as much as 10% of Florida’s annual gross domestic product, it is plausible to think that the small business community in this sector has suffered financially from the pandemic amid a decline in travel.
Statistics from the US Small Business Administration (SBA) indicate that there were 2.4 million small businesses in Florida by the end of 2016, while the number of businesses in the lodging and food services segment amounted to 60,000 by the end of that year.
Given the importance and sensitivity of these businesses to the current headwinds caused by the pandemic, small business loans in Florida have emerged as an alternative as they can be used as a lifeline to stay afloat while the situation subsides.
The following provides a quick look at how small business loans in Florida have helped small companies in the state survive the pandemic, while it also highlights the benefits of these financing instruments in case you are considering applying for one for your small business as well.
According to recent reports from the US Small Business Administration branch within the state, more than 2 million small business loans in Florida have been approved by the agency since the pandemic started, with the total amounting to $127 billion extended to small companies to help them survive the downturn.
James Rivera, an associated administrator for the SBA, said that the hospitality business has been “a canary in the coal mine”, as this sector has seen one of its toughest times in the last century as the demand for travel kept plunging during the second quarter of the year.
Despite the efforts of the federal government to assist these companies, government-backed small business loans in Florida have not sufficed to cope with the higher demand, as statistics indicate that nearly 48% of applicants were turned down. This negatively resulted in at least 2.5 million business owners without a much-needed financial lifeline.
As a result, private small business lenders like Camino Financial have emerged as an alternative, using technology to facilitate and expedite the application and approval process while effectively reducing waiting times to as little as 48 hours to respond promptly to these companies’ needs.
Small business loans in Florida can be obtained easily by relying on financial technology companies, as they offer a much more streamlined process compared to traditional lenders.
These loans can be used to strengthen the business’ cash reserves, expand the inventory during the holidays, or cover operating expenses while business volumes pick up.
These loans offer flexible credit terms and competitive annual interest rates starting at 12% while repayment periods can go from 24 to 60 months.
Have you applied for small business loans in Florida and got denied? Online small business loans can be the answer to help you in surviving this temporary downturn while things get back to normal. It’s easier that you think and could be exactly what your business needs.
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