New loan fund for small businesses

The New York Forward Loan Fund is an economic recovery program supporting NYS businesses, nonprofits and small residential landlords as they reopen after COVID-19. Each of the three are directed to www.nyloanfunds.com in order to apply.

Eligible small businesses, nonprofits and landlords must 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 its operations.

The opportunity targets small businesses and nonprofits with 20 or fewer full-time-equivalent employees. It also targets small residential landlords that have no more than 200 units under ownership and no single property greater than 50 units.

For small businesses and nonprofits, the program offers up to three months of your average monthly revenue from any given three-month period before the COVID-19 outbreak or a maximum of $100,000. For small residential landlords, the program offers projected reduction in six-months’ net operating income based on actual reductions in net operating income for either April 2020 or May 2020, or a maximum of $100,000.

Small businesses and nonprofits that received loans exceeding $50,000 through the Paycheck Protection Program are ineligible. Small businesses receiving any amount through an Economic Injury Disaster Loan from COVID-19 are also ineligible, and nonprofits follow suit except for an EIDL advance grant of up to $10,000. Small businesses and nonprofits with revenues exceeding $3 million are also ineligible.

It is also necessary for the small business, nonprofit or small residential landlord to have been in business for more than one year.

For small residential landlords, 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. Additionally, properties must have positive cash flow for a 12-month period prior to the 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.

When applying, small-business owners will be required to select a lender that they get matched to. The computer will calculate which of the four lenders — Accion East, National Development Council, Pursuit or TruFund Financial Services — is best for each applicant, determined by industry and area. Nonprofits have two possible selections: National Development Council and TruFund Financial Services. And small residential landlords will only be working with Community Preservation Corporation.