New York Forward Loan Fund for Small Businesses and Nonprofits
New York State small businesses, nonprofits and small residential landlords are eligible for up to a $100,000 loans under the New York Forward Loan Fund (the Fund). The loans are available to entities that did not receive a loan greater than $50,000 through either the U.S. Small Business Administration (SBA) Paycheck Protection Program (PPP) or the SBA Economic Injury Disaster Loans (EIDL) for COVID-19 in 2020.
Proceeds are required to be used for working capital, inventory, property taxes, rent, utilities, marketing, re-fitting for social distancing, or similar expenses. The proceeds cannot be used to repay other loans.
Eligibility
New York State businesses in existence for at least one year and suffering from COVID-19 economic hardship have an opportunity to receive the loans. Owners of more than one business can apply for loans for each, provided that they are separate legal entities, have separate tax ID numbers, and employ 20 or fewer full-time or full-time equivalent employees per entity. In addition to the requirements set forth above, the businesses, by category, must also qualify as follows:
How to Apply
The online application process is available at the New York Forward Loan Fund website. The loan applicant will be contacted by a community development financial institution. The financial institution will collect documentation and conduct a credit check. Approved loans will be distributed through participating lenders. If a loan is denied, the Fund suggests not to apply to a different lender as a denial by one lender is considered a decline by all lenders.
Loan Terms
Small businesses and nonprofits are eligible for the lesser of (a) $100,000 or (b) up to 100% of average monthly revenues in any 3-month period from 2019 or first quarter of 2020.
Small residential landlords are eligible for the lesser of (a) $100,000 or (b) projected reduction in six months of net operating income based on actual reductions for the month of April or May 2020.
Up to $100,000 loans are available and payable over a 5-year period, with monthly, interest-only payments for the first 12 months, and interest and principal payments for months 13 to 60. The interest rate for small businesses and residential landlords is fixed at 3%, and for nonprofits at 2%.
Late fees are imposed on missed payments. However, there are no application fees, no collateral required, and no prepayment penalty if the loan is paid off before maturity.
Contact Us
If you have questions or need assistance regarding opportunities under the New York Forward Loan Fund, contact your client service team or the following:
Ronald F. DeSoiza, CPA, ABV
Partner
rdesoiza@pkfod.com
Sandy Weinberg, JD
Principal
sweinberg@pkfod.com
Steven J. Eller, CPA, JD
Partner
seller@pkfod.com