COVID-19: New York Forward Loan Fund (NYFLF) 

• Governor Cuomo has announced the New York Forward Loan Fund program (NYFLF) which is aimed at supporting New York State small businesses, nonprofits, and small landlords
• Small Businesses – Eligibility:
  • Employ 20 or fewer full-time equivalent employees;
  • Gross revenues of less than $3 million per year;
  • Have not received either an SBA PPP or EIDL loan for COVID-19 in 2020;
  • Have suffered a direct economic hardship as a result of COVID-19;
  • Been in business for at least 1 year as of the date of loan application;
  • Located in NY.
  • Nonprofits – Eligibility:
    • Organized as a 501(c)(3) or faith-based organization (Note: cannot be for support of religious worship or activities);
    • Employ 20 or fewer full-time equivalent employees;
    • Provide direct services to New Yorkers (daycare, legal aid, food banks, etc.);
    • Have an annual operating budget of less than $3 million per year;
    • Have not received either a SBA PPP or EIDL loan for COVID-19 in 2020;
    • Have suffered a direct economic hardship as a result of COVID-19;
    • Been in operation for at least 1 year as of the date of loan application;
    • Located in NY.
    • Small Landlords – Eligibility:
      • 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 NYFLF 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 COVID-impacted non-paying tenants;
      • Properties must be in good repair, with no major life and safety violations;
      • Have not received either a SBA PPP or EIDL loan for COVID-19 in 2020;
      • Have suffered a direct economic hardship as a result of COVID-19;
      • Been in business for at least 1 year as of the date of loan application;
      • Properties must be located in NY.
• Interest Rate: 3% for small businesses and landlords; 2% for nonprofits
• Term: 5 years
• Cap on Loan Amount: see website below for caps on loan amount for small businesses, landlords, and non-profits
• Proceeds: must be used for working capital, inventory, marketing, refitting for new social distancing guidelines, operating and emergency maintenance, property taxes, utilities, rent, supplies, etc.
• Other Terms: No application fees; no collateral is required; may prepay without penalty
• Pre-application for NYFLF opens May 26, 2020 at Noon
• Loans are not forgivable in part or in whole
• More information is available here: https://esd.ny.gov/economic-recovery-covid-19-loans-small-businesses
• More information on how to apply is available here: https://esd.ny.gov/nyforwardloans-info

The Attorneys at Levene Gouldin & Thompson, LLP are available to provide advice and counsel concerning matters related to COVID-19.