On May 28, 2020, New York Governor Andrew Cuomo announced the launch of the New York Forward Loan Fund (NYFLF), a loan program that relieves the burden on small businesses or nonprofits based in New York state or small landlords with real estate in New York state York, who has not received loans under either the Paycheck Protection Program or the SBA’s Economic Injury Disaster Loan program related to COVID-19. NYFLF is an effort to help these companies get back on their feet when they reopen.
The loans are available to certain businesses and nonprofits with 20 or fewer full-time equivalent employees and landlords. Borrowers must have been in existence for at least a year prior to the loan application and demonstrate direct economic hardship due to social distancing and stay-at-home orders related to COVID-19 that have significantly affected their operations. The loan bears interest (3% per year for small businesses and landlords; 2% per year for non-profit organizations) and is payable over a period of 5 years (interest only for the first year, principal and interest on the balance of the term) . They can be prepaid at any time with no penalty and are non-recourse (ie no collateral required). These loans are not forgivable (unlike Paycheck Protection Program loans). Proceeds can be used for working capital, inventory, marketing, social distancing upgrade, rent, supplies, and other purposes, but not to refinance existing loans.
Small businesses may borrow up to $ 100,000 or 100% of their average monthly income in any three month period beginning in 2019 or the first quarter of 2020 as long as they have gross income of less than $ 3 million per year.
Not for profit (Must be 501 (c) (3) or a faith-based organization (but not in support of religious services or activities) may borrow up to $ 100,000 or 100% of their average monthly spend in any three month period beginning in 2019, or Q1 2020 if they offer direct services to New Yorkers (ex.
Small landlords May borrow up to $ 100,000 or their projected three month net operating income reduction based on actual NOI reductions for April or May 2020 as long as they own no more than 200 units (and no single property owns more than 50 units) . ). You will need to provide evidence that a mortgage is either subject to an active forbearance arrangement, that you have not missed any debt service and / or active mortgage in the past 12 months, and that your property taxes are up to date through March 2020.
Complete information is available on the NY Empire State Development Website here.
Pre-registrations open on May 26, 2020, at 12 p.m. Eastern Time, processing begins on June 1, 2020 based on branches and regions opened, and are available here.