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The $100M New York Forward Loan Fund (“NYFLF”) will provide working capital loans to eligible small businesses, nonprofits and small landlords that did not receive a Paycheck Protection Program (“PPP”) loan, or an Economic Injury Disaster Loan (“EIDL”) from the Small Business Administration (the “SBA”) for COVID-19 in 2020. NYFLF loans are not forgivable, and they must be paid back over a 5-year term with interest. The purpose of the program is to support businesses as they proceed to reopen after NYS on PAUSE, and have upfront expenses to comply with the New York Forward Plan guidelines, including regarding inventory, marketing, and refitting for new social distancing guidelines. Below, we outline program highlights.*

NYFLF Loan Terms

Loan Amount:

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

 Interest Rate:

  • Small businesses and landlords: 3% fixed annual interest rate.
  • Nonprofits: 2% fixed annual interest rate.

 Repayment:

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

 Term: 5 years (60 months).

 Proceeds:

  • Borrowers must use proceeds for working capital, inventory, marketing, refitting for new social distancing guidelines, operating and emergency maintenance, property taxes, utilities, rent, supplies, etc.
  • Borrowers may not refinance an existing loan.
  • When applying for the loan, applicants are required to detail their anticipated use of the funds.

 Other Loan Terms:

  • There are no application fees, however a late fee will be assessed for missed loan payments.
  • No collateral is required.
  • Borrowers may prepay the loan without penalty.

NYFLF Eligibility

For a small business to be eligible for a NYFLF loan, it must meet the following requirements:

  • Employ 20 or fewer full-time equivalent employees;
  • Have gross revenues of less than $3 million per year;
  • Have not received an SBA PPP loan or an SBA EIDL for COVID-19 in 2020;
  • Have suffered a direct economic hardship as a result of COVID-19 related social distancing policies and stay-at-home order that have materially impacted its operations;
  • Been in business for at least 1 year as of the date of loan application; and
  • Located in the State of New York.

NOTE: The owner of the business with the largest ownership interest should complete and submit the pre-application. All owners with more than 20% ownership will be required to attest to the information in the application.

For a nonprofit to be eligible for a NYFLF loan, it must meet the following requirements:

  • Organized as a 501(c)(3) or faith-based organization (cannot be for support of religious worship or activities);
  • Employ 20 or fewer full-time equivalent employees;
  • Provide direct services to New Yorkers (e.g., daycare services, legal aid, food banks, soup kitchens, after school programs, senior services, educational programs, clothing banks);
  • Have an annual operating budget of less than $3 million per year;
  • Have not received an SBA PPP loan or an SBA EIDL for COVID-19 in 2020;
  • Have suffered a direct economic hardship as a result of COVID-19 related social distancing policies and stay-at-home order that have materially impacted their operations;
  • Been in operation for at least 1 year as of the date of loan application; and
  • Located in the State of New York.

NOTE: A member of the nonprofit’s executive team should complete and submit the pre-application, and must attest to the information in the application.

For a small landlord to be eligible for a NYFLF loan, it must meet the following requirements:

  • Have no more than 200 units under ownership, and no single property greater than 50 units;
  • Properties must either be located in a low or moderate income census tract or meet a rent test where property rents are affordable to tenants of low and moderate income;
  • Properties must have positive cash flow for a 12-month period prior to the loan request;
  • Properties must have an active forbearance agreement for their mortgage, or proof that they have not missed a monthly debt service payment in the last 12 months, and/or no active mortgage;
  • Properties must be current on their property taxes through March 2020;
  • Property owners must attest that they will not evict tenants impacted by COVID-19 who are not paying rent;
  • Properties must be in good repair, with no major life and safety violations;
  • Have not received an SBA PPP loan or an SBA EIDL for COVID-19 in 2020;
  • Have suffered a direct economic hardship as a result of COVID-19 related social distancing policies and stay-at-home order that have materially impacted their operations;
  • Been in business for at least 1 year as of the date of loan application; and
  • Properties must be located in the State of New York.

NOTE: The owner of the business with the largest ownership interest should complete and submit the pre-application. All owners with more than 20% ownership will be required to attest to the information in the application.

NYFLF Application Process

  • Applications for the NYFLF will be open based on the industries and regions that have been reopened.
  • This is not a first-come, first-served loan program.
  • Pre-applications opened on May 26, 2020 for industries and regions that have been reopened. Pre-applications will be reviewed on a rolling basis as regions and industries are phased to reopen.
  • Five Community Development Financial Institutions (“CDFIs”) started processing pre-applications on June 1, 2020: Accion East, Community Preservation Corporation, National Development Council, Pursuit, and TruFund Financial Services. Applicants should not apply to the participating CDFI lender directly.
  • Small businesses and nonprofits that are in industries and regions that have not yet reopened are encouraged to prepare their pre-applications and get matched with a participating CDFI lender in advance here.
  • There is a target of 2-3 weeks from loan application to closing. To accelerate loan processing, it is recommended that applicants prepare the required information in advance.
  • The NYFLF is supported by 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.

*Required Disclaimer: This alert is provided for informational purposes and does not constitute, and should not be considered legal advice. Specific facts and circumstances will differ. Neither the transmission nor the receipt of this information shall create an attorney-client relationship between the transmitter and the recipient. You should not take, or refrain from taking, any action based upon information contained in this alert without consulting legal counsel of your own choosing. Under applicable professional rules of conduct, this informational publication may be considered attorney advertising.

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