Jane Muir Shareholde J. Muir & Associates P.A. Miami

Since Miami-Dade Mayor Carlos Gimenez ordered "nonessential retail and commercial establishments" to be closed on March 19 to prevent the spread of the coronavirus, many predicted an economic impact.

South Florida small businesses are already experiencing the effects. Some, like groceries, wine and spirits, and IT companies, are booming, but many of our thriving local businesses, like hospitality, entertainment, beauty and fitness, cannot operate.

Even though best practice is to reserve three months of operating expenses, the average small business holds only 27 days cash reserve, and half of all small businesses hold a cash buffer of less than one month. Assuming consistent costs, we may be quickly approaching the end of many companies' cash reserve. Luckily, there are some resources to help South Florida businesses survive coronavirus.

At the state level, Gov. Ron DeSantis activated the Florida Small Business Emergency Bridge Loan Program, which can assist small businesses impacted by the coronavirus. Managed by the Florida Department of Economic Opportunity, the program will provide short-term, interest-free loans to small businesses experiencing economic injury.

All business owners with two to 100 employees located in Florida affected by the coronavirus may apply for short-term loans up to $50,000, interest-free for up to one year. These loans are designed to bridge the gap to either federal SBA loans or commercially available loans.

DEO will work with every borrower to ensure that repayment of the loan isn't an overwhelming burden. To be eligible, a business must have been established prior to March 9, and demonstrate economic impacts as a result of the coronavirus.

Another Florida program to help small business is the "Short Time Compensation Program," a voluntary employer program designed to help employers maintain their staff by reducing the weekly working hours during temporary slowdowns instead of temporarily laying off employees.

If an employer establishes a Short Time Compensation Plan and an employee meets the qualifications to file a re-employment assistance claim in the state of Florida, the employee will receive a partial re-employment check to supplement their reduced paycheck.

At the federal level, Congress passed a $2.2 trillion stimulus package. Among other provisions for major corporations and employees, the bill includes allocating $349 billion to companies with 500 employees or fewer to help them maintain payroll and deferment of payroll taxes until 2021 and 2022. This program, commonly referred to as the Paycheck Protection Program exhausted the funds available in only 13 days because the terms were so attractive.

Loans of 2.5 times the borrower's average monthly payroll, up to $10 million, bear an interest rate at 1% and may be forgiven if dedicated to payroll, benefits, and rent or mortgage expenses. These loans are unique because they are administered by the applicant's bank. Congress is expected to approve additional funding for small business relief this week.

Ordinary SBA loans will remain available and funding will likely be expanded. Loans of $100,000 up to $2 million in assistance per small business and can provide economic support to small for profit and nonprofit businesses to help overcome the temporary loss of revenue they are experiencing. Loans may be used to pay fixed debts, payroll, accounts payable and other bills that can't be paid because of the disaster's impact.

The interest rate is likely to be 3.75% for small businesses without credit available elsewhere; businesses with credit available elsewhere are not eligible. The interest rate for non-profits is 2.75%. Loans have long-term repayments to keep payments affordable, up to a maximum of 30 years. Terms are determined on a case-by-case basis, based upon each borrower's ability to repay.

Although we are definitely in for a difficult few months, these resources can help small businesses cover their expenses. They may even place businesses in a better position than they were before the coronavirus, by permitting them to restructure debt at a lower interest rate.

The key is to act quickly to take advantage of these programs, maintain relationships with customers so they will return, and use the time we have to work on our businesses.

South Florida has more experience than the rest of the country with business interruptions from hurricanes, so at least we have that going for us. At least this time, we have Wi-Fi, hot water and air conditioning.

Jane Muir is a business attorney, focusing on commercial litigation, business transactions and general counsel. She is president-elect of the Miami-Dade County Bar Association. She may be reached at [email protected].