Cocoa opens forgivable small business loan applications for minority entrepreneurs
The city of Cocoa announced that it will begin accepting applications for UpStart Cocoa Business Development program, which includes forgivable loans of up to $10,000 for small businesses in the city that meet certain requirements.
Cocoa kicked off the program last year with the goal of promoting minority- and women-owned small businesses in the city. Last year, the first small business, a soul food restaurant, completed all the requirements and is now running successfully after receiving a $7,500 loan through the program. With Chef's Kitchen doing so well, the city this year has expanded the program to allow more businesses—now accepting five local businesses into the program while previously it had only been one. Two of the businesses must be located within Cocoa's Diamond Square District, which includes the area bounded by Pineda Street on the west, School Street on the north, the Florida East Coast Railroad on the east, and Rosa L. Jones Drive on the south.
The loan application window opened Feb. 1 and will remain open through March 15 at choosecocoa.org/223/upstart. A review committee comprised of a member of the City of Cocoa’s Finance staff, a Diamond Square Community Redevelopment Area Board Member, a representative from weVenture, and an appointed community banking representative will choose the recipients of the loans.
City councilman LaVander Hearn said the city has a real need to actively spur growth and new businesses from the ground up, adding that doing so benefits everybody. "One of the things council took a look at is if you travel through some areas of Cocoa you'll see spaces for rent that are perfect for small businesses," he said. "Our proposition is it would help the blighted areas and revitalize those areas, which would give all of Cocoa a boost."By attracting new businesses to the city or helping old ones get to the next level, Hearn said it offers more options for customers in their own communities, helps the city's overall economic position and gives a leg-up to smaller entrepreneurs who often have more hurdles to clear. "Small businesses a lot of the time have a hard time getting jumpstarted because of the initial costs," Hearn added. The success of Chef's Kitchen this past year, he said, spurred the expansion of the program and the expansion of the benefits to the community, he said. "It's just all-around great for the economy, the residents and the business owners," Hearn added.
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Loans are given only after entrepreneurs complete the 24-week IGNITE 360 business mentoring program, which is administered by weVENTURE Women's Business Center at Florida Tech's Bisk College of Business.
That money is then treated as a deferred loan with no interest accruing for three years. The loan is then forgiven after those three years as long as the business is complying with the terms and conditions of the program.
Eligibility requirements for UpStart forgivable loans:
Minority- and women-owned businesses, meaning any business that is at least 51% owned by a member of a minority group.
New businesses under two years old or those relocating to the city of Cocoa with fewer than 10 employees.
Applicants participate in 24-week business education course through weVENTURE
Dining establishments may be eligible for funding as long as the business derives at least 51% of its gross revenue from the sale of food and/or non-alcoholic drink for consumption on the premises.
Non-eligible businesses include social service providers, non-profit agencies, gun shops, agricultural services, liquor stores, medical marijuana and CBD shops, shops that sell drug paraphernalia, pawn shops, bailbond services, tattoo/body piercing parlors, check cashing facilities, adult entertainment facilities, thrift shops, nightclubs and bars.
Businesses cannot have received funding assistance from the city of Cocoa within three years of the current submission.
For startup businesses, the minority entrepreneur is required to invest at least 10% of startup costs from non-UpStart Cocoa Program related funding sources.
Tyler Vazquez is the North Brevard Watchdog Reporter at FLORIDA TODAY. Contact Vazquez at 321-917-7491 or tvazquez@floridatoday.com. Twitter: @tyler_vazquez
This article originally appeared on Florida Today: Cocoa offers forgivable small business loans for minority entrepreneurs
