A new program by New York State is providing assistance for micro-businesses and startup ventures with 20 or fewer full-time equivalent employees — which represent 90% of all businesses — as well as nonprofit organizations. New York Forward Loan Fund (NYFLF) is a new economic recovery loan program aimed at supporting New York State small businesses as they reopen after the COVID-19 outbreak and NYS on PAUSE. NYFLF is providing working capital loans so that small businesses, nonprofits and small landlords have access to credit as they reopen.
The working capital loans are timed to support businesses and organizations with expenses to comply with guidelines as they reopen (e.g., inventory, marketing, rent and utilities, property taxes, supplies and refitting for new social distancing guidelines) under the New York Forward Plan. They are for entities 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 interest rate is 3% for small businesses and 2% for nonprofits. Small businesses can apply for up to $100,000 or up to 100% of average monthly revenues in any 3-month period from 2019 to first quarter 2020. The term is 60 months with interest. The first 12 months are interest only, paid monthly with interest and principal payments starting in month 13. No collateral is required. There is no application fee. The loans are not forgivable in part or whole, and need to be paid back over the 5-year term with interest. They cannot be used to refinance existing debt.
The program is not first-come, first-served loan. Applications will be reviewed on a rolling basis as regions and industries reopen.
Complete program details and application guidelines are here: https://www.connect2capital.com/partners/new-york-forward-loan-fund/
Five Community Development Financial Institutions (CDFIs) will be processing pre-applications starting June 1, 2020: Accion East, Community Preservation Corporation, National Development Council, Pursuit and TruFund Financial Services.
The New York Forward Loan Fund is supported by Apple Bank, BNB Bank, BlackRock Charitable Fund, Citi Foundation, Evans Bank, Ford Foundation, M&T Bank, Morgan Stanley, the Ralph C. Wilson, Jr. Foundation, and Wells Fargo.
The program is administered through the Empire State Development division of Small Business and Technology Development.
