The Miami-Dade County in Florida has launched an initiative offering forgivable loans of up to $100,000 to businesses aiming to expand their operations and generate new permanent jobs. This opportunity could be particularly appealing to Cuban entrepreneurs settled in the southern part of the state.
According to the official announcement from the Miami-Dade Department of Housing and Community Development, applications started being accepted last Wednesday through the Community Development Block Grant Special Economic Development Program (CDBG-SPED), which is backed by federal community development funds.
The application window will remain open until the county confirms that all available funds have been allocated, with no set closing date.
Funding Options Based on Job Creation
The official brochure released in October outlines two funding options, determined by the number of jobs the business commits to creating.
To qualify for $70,000, the project must create two full-time equivalent positions, both of which should benefit low- or moderate-income residents.
For the $100,000 amount, the requirement is to create three positions, with at least two benefiting individuals from this economic group. This requirement aligns with the federal Community Development Block Grant (CDBG) program rules, which primarily aim to assist low-resource individuals and communities.
The brochure specifies that these jobs must be maintained for a minimum of one year, and the business is required to keep records to demonstrate compliance.
Understanding Forgivable Loans
A distinctive feature of the program is that the funds are provided as loans that can be forgiven once authorities verify the mandated job creation. This forgiveness is not automatically granted upon application approval or receipt of funds; it is contingent upon fulfilling the obligations set out in the financing agreement.
Selected businesses must sign applicable contractual documents with Miami-Dade and undergo financial evaluation and monitoring procedures.
The county also requires periodic reports on project progress and job creation, along with maintaining documentation related to the jobs for five years post fulfillment of the federal objective.
Eligibility Criteria for Businesses
The program targets established businesses capable of demonstrating a commercial track record and the ability to sustain an expansion project.
Applicants must operate within Miami-Dade and provide financial and tax documentation from the past three years, including detailed financial statements prepared by a certified public accountant (CPA).
They must also prove legal control over the location where the project will be developed, pass a background check, and show they have sufficient resources to finance the proposed investment.
A crucial requirement is having confirmed funding from other sources amounting to at least 15% of the total project budget. This contribution can include the owner's capital.
Thus, the program is not designed for businesses to rely solely on the county loan for expansion.
The brochure explicitly excludes new businesses, home-based companies, and businesses seeking funds solely to avoid or delay closure. It also states that applicant businesses and their subsidiaries cannot receive more than one award from the program within a three-year period.
Appropriate Uses for the Loan
The funding must be allocated to eligible economic development projects that generate new jobs.
Eligible activities include the acquisition, construction, reconstruction, or rehabilitation of commercial or industrial buildings and facilities directly linked to expansion and job creation.
Certain property improvements related to the project may also be financed, provided they meet federal provisions and receive the necessary approvals.
Ineligible expenses include vehicle purchases, furniture, other personal goods, new housing construction, or payments for personal sustenance of individuals and families. Approval of any expenditure will depend on its project relevance and adherence to federal fund usage regulations.
Disbursement Process
Miami-Dade clarifies that all disbursements are made via reimbursements.
This means the business must prove authorized expenses with invoices, receipts, and payment proofs before receiving the corresponding funds. The program does not offer upfront cash to applicants or contractors involved in the project.
Therefore, the financial capacity of the business is one of the aspects evaluated by authorities before approving an application.
Required Documentation
Documentation includes tax returns and financial statements from the previous three years, business legal information, federal employer tax identification number (EIN), and unique entity identifier (UEID).
Applicants must also provide proof of property control, information on project funding sources, and affidavits required by the county.
Depending on the activity's nature, insurance documents, owner information, contracts, budgets, and other necessary proofs may be requested to assess economic viability.
Businesses needing a UEID can consult the federal SAM.gov portal mentioned in the official form.
Application Submission Process
The process begins with an electronic pre-application, where the county checks if the business and project meet the program's minimum requirements.
Businesses that pass this initial assessment will receive an invitation to submit the complete application and continue with document and financial reviews.
Applications are accepted online only, through the Neighborly system, accessible via the county's official call page.
Interested parties must review the complete brochure before submitting their application, particularly the requirements for tax documentation, complementary funding, and job creation.
The county will evaluate eligibility, economic viability, and submitted documentation before selecting beneficiaries.
Submitting a pre-application does not guarantee funding. Approval will depend on meeting criteria, related evaluations, and fund availability.
Regarding employment in Miami-Dade, the county maintains other independent hiring processes separate from this business call.
In October, Miami-Dade public job offers were published for maintenance, administration, technology, and airport services positions, with specific requirements and salaries for each role.
Unlike those vacancies, CDBG-SPED does not allow workers to directly apply for a position; instead, it funds business projects whose expansion should translate into new job opportunities for county residents.
FAQ on Miami-Dade Forgivable Loans for Businesses
Who is eligible for the Miami-Dade forgivable loan program?
Established businesses operating within Miami-Dade with a proven commercial history and the ability to sustain an expansion project are eligible. They must meet financial, legal, and project funding requirements.
What are the funding options available under this program?
There are two funding options: $70,000 for creating two full-time equivalent jobs and $100,000 for creating three jobs, with specific requirements for benefiting low- or moderate-income residents.
How are the funds disbursed to businesses?
Funds are disbursed through reimbursements. Businesses must provide proof of authorized expenses with invoices and payment receipts before receiving the funds.