Empire State Development recently announced that a number of small businesses and nonprofit organizations are now eligible to receive low-interest loans through the New York Forward Loan Fund (NYFLF) if they received $50,000 or less in Paycheck Protection Program (PPP) assistance.
Eligible small businesses, nonprofit organizations, and small residential landlords can apply for a 60 month, no-fee loan with a fixed interest rate (3% for small businesses and landlords, 2% for nonprofits). The funds may be used for working capital expenses related to reopening, including property taxes, payroll, and costs associated with updates to a physical space in order to comply with social distancing guidelines. The maximum loan amount is $100,000, and the loan is not forgivable.
Eligibility for an NYFLF loan is determined through the following criteria:
- must employ 20 or fewer full-time equivalent (FTE) employees;
- small businesses must have gross revenues of less than $3 million per year
- nonprofit organizations must provide direct services and have an annual operating budget of less than $3 million per year; and
- must not have received a U.S. Small Business Administration Paycheck Protection Program of greater than $50,000 or an Economic Injury Disaster Loan (EIDL) for COVID-19 of any amount, except for EIDL advance grant of up to $10,000.
Applications for the NYFLF will be reviewed on a rolling basis, and pre-applications are now open.
For more information, contact your Prager Metis advisor or our crisis management team at CrisisManagement@pragermetis.com