Florida SBA Fraud
The Sunshine State's Dark Cloud of EIDL Problems
Florida's tourism-dependent economy was devastated by the pandemic. Now the state ranks third in fraud prosecutions while legitimate businesses face aggressive collections. Welcome to the Sunshine State's SBA nightmare.
Florida's Perfect Storm
Florida's economy is built on tourism, hospitality, and seasonal businesses. When travel stopped in 2020, the impact was immediate and devastating. Theme parks closed. Hotels emptied. Restaurants went dark. Beaches sat empty.
The result was a massive wave of EIDL applications from businesses desperate to survive. Florida became the third-largest recipient of pandemic relief funds. Now, with tourism recovered but debts still owed, Florida borrowers are facing the harsh reality of 30-year loan obligations.
Key Florida Statistics
- $54+ billion in PPP and EIDL loans distributed to Florida businesses
- 489 fraud prosecutions initiated in Florida (third nationally)
- $980 million in fraud identified by investigators
- 2,100+ Florida borrowers reported to Treasury collections in 2025
- Average EIDL loan: $118,000
Florida's Fraud Reputation
Florida has earned a reputation as a hotspot for financial fraud. This has made it harder for legitimate Florida borrowers, as the SBA appears to scrutinize Florida applications more heavily. Many borrowers report being flagged for "fraud review" despite having completely legitimate businesses.
Major Florida Cities
Miami
Miami's international business community and tourism sector were hit hard by travel restrictions. The cruise industry, a massive economic driver, was completely shut down for over a year. Hotels, restaurants, and nightlife businesses along South Beach took massive EIDL loans.
Miami is also unfortunately a hotbed of fraud prosecutions, with the Southern District of Florida bringing dozens of major cases. This has created additional scrutiny for legitimate Miami businesses.
Orlando
The theme park capital of the world saw catastrophic losses when Disney, Universal, and SeaWorld closed their gates. The entire ecosystem of hotels, restaurants, tour companies, and entertainment venues surrounding the parks took EIDL loans. While tourism has recovered, many businesses are still servicing pandemic debt.
Tampa Bay
Tampa's diverse economy, spanning healthcare, finance, and tourism, saw varied impacts. While some sectors thrived, hospitality and entertainment businesses struggled. The area's growing population has helped some businesses recover, but debt burdens remain.
Jacksonville
As Florida's largest city by area, Jacksonville has a diverse business base. Port-related businesses faced supply chain disruptions, while retail and hospitality suffered from reduced consumer activity. Many Jacksonville borrowers report frustration with SBA communication.
South Florida (Fort Lauderdale, West Palm Beach)
The Gold Coast's luxury tourism and boating industries were particularly hard hit. Yacht brokerages, charter companies, and high-end hospitality took substantial EIDL loans during extended closures. The seasonal nature of business makes fixed monthly payments particularly challenging.
Keys (Key West, Key Largo)
The Florida Keys were essentially cut off during the pandemic, with checkpoints limiting access. Tourism-dependent businesses had no revenue for months. Many took EIDL loans that now exceed the value of their businesses.
Notable Florida Fraud Cases
"The Miami Nightclub Empire" - Miami, 2024
Nightclub promoters obtained $7.8 million in PPP loans for venues that never reopened, using funds to buy luxury vehicles, jewelry, and cryptocurrency. Three defendants sentenced to combined 22 years.
"The Fake Employee Farm" - Broward County, 2024
A scheme used fabricated employee records across 47 fake companies to obtain $28 million in PPP loans. The largest single fraud case in Florida. Ring leaders received 15+ year sentences.
"The Serial Entrepreneur" - Orlando, 2025
A business owner obtained EIDL loans for 12 different "businesses" that were actually the same failing restaurant with different DBAs. Total fraud: $3.2 million. Awaiting sentencing.
"The Crypto Conversion" - Tampa, 2024
Immediately upon receiving $2.1 million in PPP funds, a borrower converted everything to cryptocurrency and attempted to flee. Caught at Miami International Airport. Sentenced to 7 years.
View more cases in our Prosecution Tracker Database.
Florida-Specific Considerations
Florida Homestead Protection
Like Texas, Florida offers strong homestead protection. Your primary residence is protected from most creditors with unlimited value protection (but limited to 1/2 acre in municipalities or 160 acres outside). This protection applies against SBA collection efforts, though federal tax liens are an exception.
Florida Bankruptcy Exemptions
Florida requires you to use state exemptions in bankruptcy (you cannot choose federal exemptions). Key protections include:
- Homestead: Unlimited value (with acreage limits) if you've owned it 1,215+ days
- Personal property: $1,000 individual / $2,000 for head of family
- Wages: 100% exempt for head of family earning $750 or less per week
- Retirement accounts: Generally fully protected
- Annuities and life insurance: Substantial protections
The 1,215-Day Rule
If you acquired your Florida homestead within 1,215 days (about 3.3 years) before filing bankruptcy, your homestead exemption may be capped at $189,050 (as of 2026). This is important for recent Florida transplants facing EIDL collections.
Florida Resources
- Florida Attorney General: Consumer protection hotline
- Florida Justice Technology Center: Legal aid resources
- Legal Aid Society of Palm Beach County: Free legal help
- Community Legal Services of Mid-Florida: Serving Central Florida
- Three Rivers Legal Services: Serving North Florida
Florida Borrower Stories
Florida's tourism-focused economy created unique challenges that we hear about frequently:
- Theme park adjacent businesses that survived on Disney/Universal traffic, now struggling with debt
- Beach rental operators who took EIDL during closures, facing collections as rates normalize
- Cruise port businesses that had zero revenue for 18+ months
- Seasonal businesses facing year-round payment obligations
- Retiree-owned small businesses where owners can't absorb personal liability
Share your Florida EIDL story to connect with other borrowers facing similar challenges.
Hurricane Considerations
Florida businesses face the additional challenge of hurricane risk. Many EIDL borrowers have also dealt with hurricane damage since taking their loans, creating a double debt burden:
- Hurricane Ian (2022): Southwest Florida businesses already carrying EIDL debt faced additional SBA disaster loans
- Hurricane Nicole (2022): East coast impacts on top of pandemic debt
- Future storms: Many borrowers worry about how they'll handle the next major storm while still paying pandemic debt
If you're dealing with both pandemic EIDL and disaster loan obligations, know that you're not alone, and the SBA theoretically has hardship programs (though getting approved remains challenging).