New York State is providing additional relief to small businesses, nonprofits, and landlords through the New York Forward Loan Fund (“NYFLF”). NYFLF loans will serve to assist in covering the upfront expenses that businesses will face in the process of reopening and complying with new guidelines set by the state. Pre-applications, with accompanying financial documents and attestations, may be submitted here.
 

Eligibility

To be eligible, the following criteria must be met:

Small Businesses
 

1. Employ 20 or fewer full-time equivalent (FTE) employees;
3. Have gross revenues of less than $3 million per year;
4. Have not received a loan from either SBA Paycheck Protection Program (PPP) or SBA Economic Injury Disaster Loan (EIDL) for COVID-19 in 2020;
5. 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;
6. Been in business for at least 1 year as of the date of loan application; and
 

Nonprofits
 

1. Organized as 501(c)(3) or faith-based organization (cannot be for support of religious worship or activities);
2. Employ 20 or fewer full-time equivalent (FTE) employees;
3. Provide direct services to New Yorkers, for example, daycare services, legal aid, food banks, soup kitchens, after school programs, senior services, educational programs, clothing banks;
4. Have an annual operating budget of less than $3 million per year;
5. Have not received a loan from either SBA Paycheck Protection Program (PPP) or SBA Economic Injury Disaster Loan (EIDL) for COVID-19 in 2020;
6. 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;
7. Been in operation for at least 1 year as of the date of loan application; and
8. Located in the State of New York.
 

Landlords
 

1. Have no more than 200 units under ownership, and no single property greater than 50 units;
2. Properties must either be located in a low or moderate income (LMI) census tract or meet a rent test where property rents are affordable to tenants of low and moderate income;
3. Properties must have positive cash flow for a 12-month period prior to NY Forward loan request;
4. 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;
5. Properties must be current on their property taxes through March 2020;
6. Property owners must attest that they will not evict COVID-impacted non-paying tenants;
7. Properties must be in good repair, with no major life and safety violations;
8. Have not received a loan from either SBA Paycheck Protection Program (PPP) or SBA Economic Injury Disaster Loan (EIDL) for COVID-19 in 2020;
9. 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;
10. Been in business for at least 1 year as of the date of loan application; and
11. Properties must be located in the State of New York.

The following businesses are ineligible: corporate-owned franchises; not-for-profit social clubs; branch banks; pay day loan stores; pawn shops; astrology, palm reading; liquor stores, night clubs; adult bookstores, massage parlors, strip clubs; track waging facilities; trailer-storage yards; and marijuana dispensaries.

Terms

For small businesses, the maximum loan will be equal to the lesser of (a) $100,000, or (b) up to 100% of average monthly revenues in a 3-month period prior to the COVID-19 outbreak (i.e., any 3-month period in 2019 or from January to March 2020). The interest rate is fixed at 3% per annum, and the loan is repayable over a five-year term.
 
For nonprofits, the maximum loan will be equal to the lesser of (a) $100,000, or (b) up to 100% of average monthly expenses for a 3-month period prior to the COVID-19 outbreak (i.e., any 3-month period in 2019 or from January to March 2020). The interest rate is fixed at 2% per annum, and the loan is repayable over a five-year term.
 
For small landlords, the maximum loan will be equal to 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.
 
Proceeds are required to be used for costs associated with working capital, inventory, marketing, refitting for new social distancing guidelines, operating and emergency maintenance, property taxes, utilities, rent, supplies, etc. They may not be used for refinancing an existing loan.
 
Unlike loans provided through the PPP or EIDL, loans provided through the NYFLF are not subject to forgiveness, either in whole or in part.
 

Priority

The $100 million loan fund will give priority to certain applicants. First, priority will be given to industries and regions that have been reopened. Second, with respect to landlords, priority will be given to those landlords whose properties are in low and moderate income census tracts or who serve low to moderate income tenants.
 

Timing

Although applications are not reviewed on a first-come, first-serve basis, applicants are encouraged to apply as soon as possible, as funds are limited, and demand is expected to be high. Pre-applications are open as of May 26, 2020, and processing will begin on June 1, 2020.