New York Forward Loan Fund

New York Forward Loan Fund (“NYFLF”) is an economic recovery loan program aimed at supporting New York State small businesses, nonprofits, and small landlords as they reopen after the COVID-19 outbreak.

NYFLF is providing working capital loans so that small businesses, nonprofits, and small residential landlords have access to credit as they reopen. These loans are available to small businesses and nonprofits that did not receive a U.S. Small Business Administration Paycheck Protection Program (“PPP”) of greater than $500,000 or an Economic Injury Disaster Loan (“EIDL”) for COVID-19 of greater than $150,000, and small landlords. The loans are not forgivable in part or whole. The loans will need to be paid back over a five (5) year term with interest. 

Eligibility

To be eligible for a NYFLF, a small business must meet the requirements detailed below. The pre-application must be completed and submitted by the owner of the business with the largest ownership interest, and that all owners with more than 20% ownership will be required to attest to the information therein. 

• Employ 50 or fewer full-time equivalent (“FTE”) employees for both small businesses;
• Have gross revenues of less than $5 million per year;
• Must not have received a U.S. Small Business Administration PPP of greater than $500,000 or an EIDL for COVID-19 of greater than $150,000;
• 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
• Located in the State of New York.
  
  

To be eligible for a NYFLF, small residential landlords must meet the requirements detailed below. Again, the pre-application should be completed and submitted by the owner of the business with the largest ownership interest, and that all owners with more than 20% ownership will be required to attest to the information therein. 

• 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 (LMI) 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 NY Forward 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 COVID-impacted non-paying tenants;
• Properties must be in good repair, with no major life and safety violations;
• 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.
  
  

Loan terms

• Loan Amount:
  
  

1. Small Businesses: 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 first quarter of 2020.
2. Nonprofits: 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 from 2019 or first quarter of 2020.
3. Small Residential Landlords: Small Residential Landlords can apply for a loan in the amount the lesser of (a) $100,000 or (b) projected reduction in 6-months’ net operating income based on actual reductions in net operating income for the month of April or May 2020.
   
   

• Interest Rate:
  
  

1. Small businesses and residential landlords: The fixed annual interest rate on the loan will be 3%.
2. Nonprofits: The fixed annual interest rate on the loan will be 2%.
   
   

• Repayment: 
  
  

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

• Term: 5 years (60 months).
  
  

• Proceeds:
  
  

1. Proceeds are required to be used for working capital, inventory, marketing, refitting for new social distancing guidelines, operating and emergency maintenance, property taxes, utilities, rent, supplies, etc.
2. Refinancing of an existing loan is not permitted. 
3. The loan applicant will be required to detail anticipated use of funds when they apply.