The New York Foward Loan Fund
As business owners throughout New York begin to reopen following the COVID-19 pandemic, many are faced with the expense of outfitting their buildings with safety equipment, cleaning supplies, and messaging ensuring tenants and customers follow safe social distancing procedures. To assist with the costs of reopening, Governor Cuomo announced the establishment of the New York Forward Loan Fund (“NYFLF”).
The NYFLF was established to support small businesses, nonprofits, and small landlords as they reopen following the COVID-19 pandemic and Governor Cuomo’s New York on Pause order. Small business owners, nonprofits, and small landlords may apply for these working capital loans to cover upfront expenses needed to comply with reopening guidelines under the New York Forward Plan, which include inventory, marketing, and refitting for new social distancing guidelines.
Loans issued under the NYFLF may be obtained for up to $100,000, with an interest rate of 3% for businesses and small landlords, and 2% for nonprofits. The loans carry a 5-year term, and importantly, delay the first payment of the principal until year two. Unlike loans issued under the Treasury’s Paycheck Protection Program, however, loans under the NYFLF are not forgivable.
The loans are available to small businesses, nonprofits, and small landlords who did not receive loans or other assistance from either the United States Small Business Administration (“SBA”) Paycheck Protection Program or the SBA Economic Injury Disaster Loan for COVID-19.
To qualify, eligible businesses and nonprofits must have 20 or fewer employees, and businesses should have gross revenue of less than $3 million. Relatedly, landlords must have fewer than 50 apartments in each building and own no more than 200 apartments in total.
Applications are currently being accepted and will be reviewed on a rolling basis rather than first-come, first-served, with priority being given to industries and regions that have been reopened. Additionally, priority will be given to minority and women-owned businesses and qualifying landlords whose property(ies) is (are) in low- to moderate-income neighborhoods according to Governor Cuomo. Additional information about the NYFLF may be found on the State’s website.
If you would like to discuss your options relating to your eligibility for a NYFLF loan or any other form of economic relief, please contact HoganWillig Attorneys at Law at 716-636-7600.
DISCLAIMER: This article has been published as a service to the general public, and, as such, is intended for general purposes only. The information contained within this article should not be considered and/or construed as legal advice. Each reader is advised to consult legal counsel to determine how the contents of this article may apply to their particular facts and circumstances.
For changing and up-to-date legal information, visit our COVID-19 Resource Center.