$25,000 loans up for grabs

SARASOTA –– Anxious to help local small businesses weather the economic downturn, Sarasota County commissioners yesterday approved a new loan program to keep them afloat until federal stimulus funds arrive.

Using $4.3 million in an untapped economic development incentive fund, commissioners hope to have the money out the door and on the street by May 1 using the Economic Development Corporation of Sarasota as the conduit to control the program.

The loan program was the hastily prepared recommendation from the EDC, which had spent the last two weeks in extensive listening sessions with the local business community according to interim executive director Dave Bullock.

At their March 24 meeting, commissioners had asked the EDC for options on how the county could use the fund to help local businesses.

The loans will be available to local companies that have been in business in the county for three years, have filed a paycheck protection program application under the CARES Act, file and file a simple application with the EDC, which will then vet the document.

Other details of the loan include:

No interest, no payment for one year
Repayment over three years at an interest rate of 3.5 percent
Requires a promissory note and personal guarantee

Of the 15,642 small businesses in the county, Bullock estimated that a loan program pegged at $25,000 would help 172 businesses. But more could be helped if owners sought less than the full $25,000.

During the lengthy discussion over whether to approve this use of the funds, and how it would work, Bullock told commissioners it was his opinion that this was the best use of the money.

“That is business retention at its heart and soul. These funds are intended for business retention,” Bullock said via a Zoom connection to the meeting.

County Administrator Jonathan Lewis told commissioners he had persuaded Bullock to use Zoom so the county could test the technology.

During the discussion, Commissioner Christian Ziegler vocally advocated several times to consider day care centers for recipients of the funds. In the end, he was successful to a degree as commissioners agreed to designate the 35 slots for day care centers.

Only Commissioner Charles Hines failed to support the program in the end saying it lacked enough specifics and he wasn’t sure if it would make a difference in the community.

Hines attempted to get commissioners to delay action for two weeks to allow the EDC to develop more details, but only he and Commissioner Alan Maio supported that motion. In the end, Maio also agreed to go ahead with the program, leaving Hines as the sole negative vote.

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