The program helps Black-owned businesses obtain borrow money when they can’t access traditional lending.
As part of his budget proposal for fiscal year 2025-26, Gov. Ron DeSantisplans to eliminate funding for the Black Business Loan Program.
His budget, called “Focus on Fiscal Responsibility,” calls for the cancellation of $2.225 million for the program, which provides loans for “Black business enterprises that cannot obtain capital through conventional lending institutions but that could otherwise compete successfully in the private sector,” according to Florida State Statute.
The program, last decade, had a record of controversy, including allegations of high rates of default, inadequate security for loans, and loans made improperly to ineligible people, including elected politicians and a convicted felon, according to reporting in the Florida Times Union of Jacksonville, theGainesville Sun and FloridaPolitics.com.
The budget cut falls under community development programs within Housing and Community Development. Overall, the department stands to be funded at $438 million under the Governor’s budget proposal, a little less than half its funding in the current budget year.