2015 News and Views
Florida Coalition for Microbusiness Development
Recommended Changes to 2014 Microfinance Act
Micro businesses and startups are a critical component of not only Florida’s overall economy but the strength and stability of local communities across the state. They provide quality goods, services and employment prospects to the communities in which they are located. However, their ability to survive and grow is hindered by the limited access to capital and lack of available credit afforded to them in the state. To overcome this issue, the Florida Legislature created the 2014 Microfinance Act to improve small business access to capital through a direct loan program and a loan guarantee program. The Florida Coalition for Microbusiness Development (FCMD) has worked with Department of Economic Opportunity (DEO) and Enterprise Florida Inc. (EFI) in the implementation of the 2014 act and has developed specific recommendations to strengthen the legislation to further improve access to capital.
The proposed amendments aim to include language that define microbusiness, as well as, promotes financial inclusion, and start-ups. They also make the program more attractive to Community Development Financial Institutions (CDFIs), Micro lenders and Microbusiness Development Organizations, and mitigate risks while providing technical assistance and access to capital. Legislative changes to improve the Florida Microfinance Act were filed in the House and Senate for the 2016 Legislative Session. Join our coalition partners to support the recommendations.
Why is it important?
- Over 90% percent of all businesses in Florida are microbusinesses; these businesses are the backbone of many communities as they spur good jobs and innovation.
- Access to business development opportunities must include access to capital and technical assistance for microbusinesses to fully participate in a thriving economy.
- By establishing this investment as a revolving loan fund, it will provide access to capital, job creation and revenue for the state.
- Your involvement should result in policy changes at the state level that improves the Microfinance Act and build our local and state economy through entrepreneurship.
- Securing support for entrepreneurs and education that help microbusiness owners grow their business helps create jobs.