Governor Cuomo of New York State announced Friday, May 22, 2020, the launch of the New York Forward Loan Fund in effort to provide over $100 million in loans to small businesses.
The distribution of these loans is intended to benefit companies that did not already receive federal funding in relation to the COVID-19 pandemic. This would include assistance from the Paycheck Protection Program (PPP) or the SBA’s Economic Injury Disaster Loan (EIDL) program.
The target beneficiaries are minority- and women-run businesses with fewer than 20 employees and less than $3 million dollars in gross revenues per year. Nonprofits looking into this loan must provide direct services to New Yorkers and have an annual operating budget of less than $3 million per year. Both small businesses and nonprofits must have been in existence for at least one year as of the date of the loan application. The loans also will be open to landlords who own fewer than 50 units per property, not to exceed 200 units of total ownership. Landlords also must have a positive cash flow for 12 months as of the date of the loan application. Geographic region and industry are also factors that will be considered and the applications will be approved on a rolling basis.
contact a member of Withum’s SBA Financial Assistance Services Group.
This program was initiated to alleviate the economic burden on small businesses during the crisis, of which make up 90% of New York businesses. Pre-applications are now open and priority will be given to small businesses that have already reopened for business. However, borrowers are encouraged to prepare their pre-applications in advance of reopening. It is important to note these loans are not forgivable. Repayment will be due over the course of five years. Loan proceeds must be used for a specific set of criteria including working capital, rent, utilities, property taxes, supplies, etc. The interest rate for small businesses and landlords will be 3%, and for nonprofits will be 2%.
If you meet the qualifications necessary to be eligible for the funding, pre-applications are open here. For more information, please visit the New York State website or feel free to reach out to us with any questions.
SBA Financial Assistance Services