Amid all the strife America has been experiencing, there’s some good news for small businesses in Miami-Dade County. They can now apply for forgivable loans for up to $25,000 in funding.
Tools For Change (TFC) is one of two organizations processing loan applications for the County. Partners for Self-Employment is the other. TFC held an informational call via Zoom Monday to review application guidelines and answer applicants’ questions about the program.
An extension of the federal Paycheck Protection Program (PPP), the loans will have a 0 percent interest rate and no origination fees. Applicants must have no more than 25 employees and retain employees for up to 12 months.
William Young is TFC’s director of business development and has been with the agency since 1994. He said the program is critical to help the local Black business community recover from covid-19.
“Our community is already underserved when you’re talking about access to capital; and when you have to shut down for any short period of time, it’s going to affect them,” Young said in an exclusive interview with Moguldom. “A lot of small businesses we deal with don’t have a reserve. They go from week to week, so in order for them to get back on their feet they’ll need capital.”
The program opened about two weeks ago and TFC had received 117 applications as of Thursday, Young told Moguldom. Over 275 people tried to get on to the Zoom call, but they reached capacity at 100 users.
Young said while anyone who fits the criteria can apply, they are focusing intently on independent contractors and solopreneurs because many Black-owned businesses fall into that category and are often left behind by larger federal programs.
“What we’re trying to do specifically is reach some of the small businesses where there’s only one person because normally, by the time these types of entrepreneurs apply for federal funding, the money has run out; so we’re focusing a little bit more on the one man operation,” Young said.
If a business has already received a PPP loan, they will be ineligible to apply for the loan through Tools for Change. However, businesses with existing loans with the agency that are not PPP loans can still apply.
“This loan program is totally separate from our regular program so if you have received a loan in the past, even if you have a current loan with us now, we encourage you to apply for this program,” Young said on the Zoom call.
Listen to GHOGH with Jamarlin Martin | Episode 72: Jamarlin Martin
Part 2. J. Edgar Hoover, the first director of the FBI, may not be around but his energy is present in new Black politics.
He also told potential applicants not to be discouraged by poor credit scores.
“Don’t let your credit score keep you from applying because we try to work with people,” Young said. “Even if your credit score is low, do not let that stop you from applying because looking at a credit report is only one item we review in the loan process.”
Loans are given on a first come, first serve basis. Another informational call will be held Tuesday, June 9, at 11:30 a.m.
For more information about the loans or to schedule an appointment, call TFC at 305-200-5568 or 786-708-2129. Young said he is best reached by email at william@tfcmiami.org and Partners for Self-Employment can be emailed at success@partnersforselfemployment.org.
Applicants may also visit TFC’s website to download the application, register for Tuesday’s Zoom meeting or watch Monday’s informational webinar.
