What is the New York Forward Loan Fund?

To help small businesses – especially minority and women-owned small businesses – that did not receive a Small Business Administration (SBA) Paycheck Protection Program (PPP) or SBA Economic Injury Disaster Loans (EIDL), Governor Cuomo announced the creation of the $100 million New York Forward Loan Fund (NYFLF).

The loan distribution will focus on businesses with less than $3 million in gross revenues and 20 or fewer employees. The funds are intended to help New York businesses with reopening after the pandemic and the statewide shutdown order. The loans are not forgivable and will need to be paid back over a five-year term with interest.

Loan Amounts

According to the state’s website, small businesses can apply for a loan in the amount of the lesser of (a) $100,000 or (b) up to 100 percent of average monthly revenues in any three-month period from 2019 or first quarter of 2020, with a fixed annual interest rate of three percent.

Nonprofits can apply for a loan in the amount of the lesser of (a) $100,000 or (b) up to 100 percent of average monthly expenses in any three-month from 2019 or first quarter of 2020, with a fixed annual interest rate of two percent.

The state is requiring proceeds of the loan to be used for working capital, inventory, marketing, refitting for new social distancing guidelines, operating and emergency maintenance, property taxes, utilities, rent, supplies, etc.

There is no loan application fee and no collateral is required, but a late fee will be assessed for any missed payments.

Eligibility

Small Businesses

In order to qualify for an NYFLF loan, the state requires small businesses to meet the following requirements:

• Employ 20 or fewer full-time equivalent (FTE) employees;
• Have gross revenues of less than $3 million per year;
• Have not received a loan from either SBA Paycheck Protection Program (PPP) or SBA Economic Injury Disaster Loan (EIDL) for COVID-19  in 2020;
• Have suffered a direct economic hardship as a result of COVID-19 related social distancing policies and stay-at-home order that have materially impacted their operations;
• Been in business for at least one year as of the date of loan application; and
• Located in the State of New York.

Nonprofits

Nonprofits are eligible for an NYFLF loan if they meet these requirements:

• Organized as 501(c)(3) or faith-based organization (cannot be for support of religious worship or activities);
• Employ 20 or fewer full-time equivalent (FTE) employees for nonprofit;
• Provide direct services to New Yorkers, for example, daycare services, legal aid, food banks, soup kitchens, after school programs, senior services, educational programs, clothing banks;
• Have an annual operating budget of less than $3 million per year;
• Have not received a loan from either SBA Paycheck Protection Program (PPP) or SBA Economic Injury Disaster Loan (EIDL) for COVID-19 in 2020;
• Have suffered a direct economic hardship as a result of COVID-19 related social distancing policies and stay-at-home order that have materially impacted their operations;
• Been in operation for at least one year as of the date of loan application; and
• Located in the State of New York.

Applying for the Loan

The NYFLF is accepting pre-applications beginning May 26, 2020 at 12 p.m. Industries and regions that have already reopened will be given priority. However, the loan program is not first-come, first-served. As different regions and industries reopen, applications will be reviewed on a rolling basis.

The state is encouraging you to prepare your pre-application in advance so you can quickly submit it once your industry and region are permitted to reopen. If your small businesses or nonprofit is in an industry and region that has not yet reopened, there are application preparation resources available.

You can fill out a pre-application and match with a participating CDFI lender at nyloanfund.com, and see FAQs about the NYFLF (PDF).

GTM has a library of COVID-19 resources to help businesses get back on track as they begin to reopen. Request a free quote to learn how we can help with your payroll and HR needs.