For certain small businesses, non-profits and landlords who did not receive a Paycheck Protection Program loan or an Economic Injury Disaster Loan from the Small Business Administration, New York State is making available loans under the New York Forward Loan Fund (NYFLF). The NYFLF is a new economic recovery loan program aimed at supporting New York State’s small businesses, non-profits and landlords as they reopen after the COVID-19 outbreak and New York State on PAUSE.
The maximum amount available to borrow under these loans is $100,000. The loans are not forgivable and are repayable over a five-year term with interest at the rate of 3% for small businesses and landlords and 2% for nonprofits.
The small business requirement for this loan program is a business with 20 or fewer full-time equivalent employees and less than $3 million in annual gross revenue. With respect to non-profits, they must provide direct services and have an annual operating budget of less than $3 million per year. With respect to landlords: (i) they can have no more than 200 units under ownership, and no single property greater than 50 units; (ii) 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; (iii) properties must have a positive cashflow for a 12-month period prior to the loan request; (iv) 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, or no active mortgage; (v) properties must be active on their property taxes though March 2020; (vi) property owners must attest that they will not evict non-paying tenants impacted by COVID-19 and (vii) properties must be in good repair, with no major life and safety violations.
Pre-applications for the NYFLF are now open. New York State will give priority to industries and regions that have been reopened. This is not a first-come, first-serve loan program. Applications will be reviewed on a rolling basis as regions and industries reopen.
For small businesses and non-profits that are in industries and regions that have not yet reopened, you can prepare your pre-application in advance. The application preparation resources can be found here.
If you have any further questions, please contact Tarter Krinsky and Drogin’s COVID-19 response team at CV19team@tarterkrinsky.com.
Attorney Advertising. The information contained in this Legal Alert provides a general summary of the topics covered and is not intended to be and should not be relied upon as legal advice. You should consult with your legal counsel for advice and before making legal, business or other decisions.
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