WE WILL WORK TOGETHER
AND GET THROUGH THIS!
New financial assistance opportunity for small businesses
”New York Forward Loan Fund”
BRONX TIMES REPORTER,BTR MAY 29-JUNE 4, 2020 7
NYS Governor Andrew Cuomo announced the New York Forward Loan
Fund (NYFLF) 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 fulltime
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. NYFLF is providing working capital
loans so that small businesses, nonprofits and small landlords have
access to credit as they reopen. These loans are available to small
businesses, nonprofits, and small landlords that did not receive a loan
from either the U.S. Small Business Administration (SBA) Paycheck
Protection Program (PPP) or SBA Economic Injury Disaster Loans (EIDL)
for COVID-19 in 2020. The loans are not forgivable in part or
whole. The loans will need to be paid back over a 5-year term with
interest.
Pre-application for the New York Forward Loan Fund opened 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. Businesses who have already received SBA
funding through the Paycheck Protection Program (PPP) or the
Economic Injury Disaster Loan (EIDL) are NOT eligible.
For small businesses and nonprofits that are in industries and regions
that have not yet reopened, you are encouraged to prepare your preapplication
in advance by taking advantage of the application
preparation resources available here:
https://esd.ny.gov/nyforwardloans-info
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 lender, please check:
https://www.connect2capital.com/partners/new-york-forward-loanfund/
The loan terms are as follows:
Loan Amount:
1. 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.
2. 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:
1. Small businesses and landlords: The fixed annual interest rate on
the loan will be 3%.
2. Nonprofits: The fixed annual interest rate on the loan will be 2%.
Repayment:
1. For months 1 – 12: Interest only payments, paid monthly.
2. For months 13 - 60: interest and principal payments, paid monthly.
Term: 5 years (60 months).
Proceeds:
1. 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.
2. Refinancing of an existing loan is not permitted.
3. 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.
Small Business Eligibility
To be eligible for a New York Forward Loan Fund working capital loan, a small
business must meet the requirements detailed below. Please note that the preapplication
should be completed and submitted by the owner of the business with
the largest ownership interest, and that all owners with more than 20% ownership
will be required to attest to the information therein.
Employ 20 or fewer full-time equivalent (FTE) employees for both small
businesses;
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 1 year as of the date of loan application; and
Located in the State of New York.
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