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