Details have emerged about the $100 million New York Forward Loan Fund (NYFLF) that was recently announced by Gov. Andrew M. Cuomo to help with recovery from the effects of the COVID-19 pandemic and economic shutdown.
At the time of his announcement on May 25, businesses were encouraged to file “pre-applications” for loans. On June 1, review of the pre-applications began and qualified applicants were to be invited to move to actually applying with a lender.
The $100 million is spread around the state by region, with the Hudson Valley designated to receive $12 million. New York City receives the largest share, $30 million. Long Island is next at $18 million.
The NYFLF targets small businesses with 20 or fewer full-time equivalent employees and that also have a gross income of less than $3 million a year. Also targeted are nonprofits and small landlords that have seen a loss of rental income. Landlords can have no more than 200 units under ownership, and have no single property with greater than 50 units. Landlords whose properties are in low- and moderate-income census tracts or who serve such tenants receive priority.
Recipients cannot have received a loan from either the Small Business Administration Paycheck Protection Program (PPP) or SBA Economic Injury Disaster Loans (EIDL) for COVID-19 in 2020. The NYFLF loans must be fully paid back over a five-year term with interest.
Supporting the NYFLF are Apple Bank, BNB Bank, BlackRock Charitable Fund, Citi Foundation, Evans Bank, Ford Foundation, M&T Bank, Morgan Stanley, Ralph C. Wilson Jr. Foundation and Wells Fargo.
Small businesses can apply for a loan in the amount of $100,000 or up to 100% of average monthly revenues in any three-month period from 2019 or first quarter of 2020, whichever is less.
Nonprofits can apply for a loan of $100,000 or up to 100% of average monthly expenses in any three-month period from 2019 or first quarter of 2020, whichever is less.
Small landlords can apply for a loan in an amount that is the lesser of $100,000 or projected reduction in three months’ net operating income based on actual reductions in net operating income for the month of April or May 2020.
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 and supplies.