August 2022

State Updates

 

New York launches loan program for small businesses impacted by COVID-19

07/02/20

Author: ADP Admin/Tuesday, June 30, 2020/Categories: Compliance Corner , State Compliance Update, New York

The state of New York has launched a loan program (New York Forward Loan Fund) to help small businesses that have been impacted by the COVID-19 pandemic.

The New York Forward Loan Fund will provide loans for working capital. The loans will have an interest rate of 3 percent and a term of five years, with monthly payments limited to interest during the first 12 months. The program has an initial funding of $100 million.


Loan Amount:

For small businesses, the maximum loan amount is the lesser of: (a) $100,000; or (b) up to 100% of average monthly revenues in a three-month period prior to the COVID-19 outbreak. The three-month period can be any three-month period from 2019 or January to March 2020.


Eligibility:

To be eligible for a loan under the program, a small business must meet the following requirements:

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

The following businesses are ineligible for loans under the program:

  • Corporate-owned franchises;
  • Not-for-profit social clubs;
  • Branch banks;
  • Pay day loan stores;
  • Pawn shops;
  • Astrology, palm reading;
  • Liquor stores, night clubs;
  • Adult bookstores, massage parlors, strip clubs;
  • Track waging facilities;
  • Trailer-storage yards;
  • Marijuana dispensaries.


Applying For A Loan:

Small businesses must complete a pre-application and then a participating lender will contact the applicant to collect information and finalize the application review process. Pre-applications will be reviewed on a rolling basis as regions and industries are phased to reopen.


More Information:

More information on the New York Forward Loan Fund, including the pre-application, can be found here.

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Tags: 07/02/20

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