New York has created a new economic recovery loan program aimed at supporting New York State small businesses, nonprofits, and small landlords as they reopen after the COVID-19 outbreak and NYS on PAUSE. The New York Forward Loan Fund (NYFLF) targets the state’s small businesses with 50 or fewer full-time equivalent (FTE) employees, nonprofits, and small residential landlords that have seen a loss of rental income.

These loans are available to small businesses and nonprofits that did not receive a U.S. Small Business Administration Paycheck Protection Program of greater than $500,000 or an Economic Injury Disaster Loan (EIDL) for COVID-19 of greater than $150,000, and small landlords. The loans are not forgivable in part or whole. The loans will need to be paid back over a 5-year term with interest.

Access to loans for small residential landlords will be targeted to owners with residential buildings of 50 units or less and will prioritize loans for residential landlords whose properties are in low and moderate income census tracts or who serve low to moderate income tenants.

The working capital loans are timed to support businesses and organizations as they proceed to reopen and have upfront expenses to comply with guidelines (e.g., inventory, marketing, refitting for new social distancing guidelines) under the New York Forward Plan.

The loan terms are as follows:

Loan Amount

1. Small Businesses: Small businesses can apply for a loan in the amount of 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.
2. Nonprofits: Nonprofits can apply for a loan less than (a) $100,000 or (b) up to 100% of average monthly expenses in any 3-month from 2019 or first quarter of 2020.
3. Small Residential Landlords: Small Residential Landlords can apply for a loan less than (a) $100,000 or (b) projected reduction in 6-months’ net operating income based on actual reductions in net operating income for the month of April or May 2020.

Interest Rate:

1. Small businesses and residential landlords: The fixed annual interest rate on the loan will be 3%.
2. Nonprofits: The fixed annual interest rate on the loan will be 2%.

Repayment:

1. For months 1 – 12: Interest only payments, paid monthly.
2. For months 13 – 60: Interest and principal payments, paid monthly.

Term:

• 5 Years

Proceeds:

1. Proceeds are required to be used for working capital, inventory, marketing, refitting for new social distancing guidelines, operating and emergency maintenance, property taxes, utilities, rent, supplies, etc.
2. Refinancing of an existing loan is not permitted.
3. The loan applicant will be required to detail anticipated use of funds when they apply.

Borrower Fees:

• No application fees. Late fee will be assessed for missed payments.

Recourse:

• No specific collateral is required to be eligible (e.g., you do not need to have access to any specific real estate or equipment). Please note that this program requires a blanket first or second lien on business assets will be filed by the community lender and any owners with more than 20% ownership must sign a personal guarantee.

Prepayment:

• Borrower may prepay the loan without penalty

Pre-applications for the New York Forward Loan Fund are now open. This is not a first-come, first-served loan program. Applications will be reviewed on a rolling basis. For small businesses and nonprofits, you can prepare a pre-application in advance by taking advantage of the application preparation resources available here.