Amid the ongoing COVID-19 pandemic, Governor Andrew M. Cuomo announced on May 22, the launch of the $100 million New York Forward Loan Fund
The New York Forward Loan Fund (NYFLF) is a new economic recovery loan program aimed at supporting New York State small businesses, nonprofits and small landlords as they reopen after the COVID-19 outbreak and NYS on PAUSE. The NYFLF targets the state’s small businesses with 20 or fewer full-time equivalent (FTE) employees (90% of all businesses), nonprofits and small landlords that have seen a loss of rental income. The NYFLF is specifically timed to support businesses and organizations as they proceed to reopen and have upfront expenses to comply with guidelines (e.g., inventory, marketing, refitting for new social distancing guidelines) under the New York Forward Plan.
Pre-application for the New York Forward Loan Fund will be open on May 26, 2020 at Noon Eastern Daylight Time. Priority will be given to industries that have been reopened. This is not a first-come, first-served loan program. Applications will be reviewed on a rolling basis as regions and industries reopen.
Loan Amount:
Small Businesses: Small businesses can apply for a loan in the amount of the lesser of (a) $100,000 or (b) up to 100% of average monthly revenues in any 3-month period from 2019 or first quarter of 2020.
Nonprofits: Nonprofits can apply for a loan in the amount of the lesser of (a) $100,000 or (b) up to 100% of average monthly expenses in any 3-month from 2019 or first quarter of 2020.
Small Landlords: Small Landlords can apply for a loan in the amount the lesser of (a) $100,000 or (b) projected reduction in 3-months’ net operating income based on actual reductions in net operating income for the month of April or May 2020.
Interest Rate:
Small businesses and landlords: The fixed annual interest rate on the loan will be 3%.
Nonprofits: The fixed annual interest rate on the loan will be 2%.
Repayment:
For months 1 – 12: Interest only payments, paid monthly.
For months 13 – 60: interest and principal payments, paid monthly.
Term: 5 years (60 months).
Proceeds:
Proceeds are required to be used for working capital, inventory, marketing, refitting for new social distancing guidelines, operating and emergency maintenance, property taxes, utilities, rent, supplies, etc.
Refinancing of an existing loan is not permitted.
The loan applicant will be required to detail anticipated use of funds when they apply.
Borrower Fees: No application fees. Late fee will be assessed for missed payments.
Recourse: No collateral is required.
Prepayment: Borrower may prepay the loan without penalty.
Eligibility
• Small businesses and nonprofits must employ 20 or fewer full-time equivalent (FTE) employees;
• Small businesses must have gross revenues of less than $3 million per year;
• Nonprofits must provide direct services and have an annual operating budget of less than $3 million per year; and
• Have not received a loan from either SBA Paycheck Protection Program (PPP) or SBA Economic Injury Disaster Loan (EIDL) for COVID-19 in 2020.
Five Community Development Financial Institutions (CDFIs) will be processing pre-applications on June 1, 2020: Accion East, Community Preservation Corporation, National Development Council, Pursuit and TruFund Financial Services. Please do not apply to the participating CDFI lender directly.
To fill out a pre-application and match with a participating CDFI lender go to nyloanfund.com.
Additional program details can be found in the documents available below.
Businesses interested in receiving a loan should visit esd.ny.gov/nyforwardloans.
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