Skip to Main Content
Services Talent Knowledge
Site Search
Menu

Alert

Our attorneys stay on top of changes in legislation, agency regulations, case law, and industry trends—then craft timely legal alerts to keep clients up to date on legal developments important to their business.

May 26, 2020

COVID-19: NYS Governor Cuomo Announces Additional Aid for Small Businesses

On May 22, 2020, NYS Governor Cuomo announced the launch of the $100 million New York Forward Loan Fund (NYFLF) aimed at helping small businesses, not-for-profits, and small landlords. The NYFLF is specifically timed to support businesses and organizations as they proceed to reopen and to assist with expenses required to comply with guidelines under the NY Forward Plan.

Eligibility requirements for small businesses are as follows:

  • Must employ 20 or fewer full-time equivalent (FTE) employees
  • Have realized gross revenues of less than $3 million per year
  • Have suffered a direct economic hardship as a result of COVID-19-related social-distancing policies and stay-at-home orders that have materially impacted their operations
  • Haven’t received a loan from either the Small Business Association (SBA) Paycheck Protection Program (PPP) or SBA Economic Injury Disaster Loan (EIDL) for COVID-19 in 2020

Small businesses can apply for a loan in the amount of the lesser of $100,000 or up to 100 percent of average monthly revenues in any three-month period during 2019 or the first quarter of 2020.

Eligibility requirements for not-for-profits are as follows:

  • Must employ 20 or fewer FTE employees
  • Be a 501(c)(3) or faith-based organization providing direct services
  • Have an annual operating budget of less than $3 million per year
  • Have suffered a direct economic hardship as a result of COVID-19-related social-distancing policies and stay-at-home orders that have materially impacted their operations
  • Haven’t received either a PPP loan or EIDL for COVID-19 in 2020

Not-for-profits can apply for a loan in the amount of the lesser of $100,000 or up to 100 percent of average monthly expenses in any three-month period during 2019 or the first quarter of 2020.

Eligibility requirements for small landlords are as follows:

  • Must own no more than 200 units, with no single property greater than 50 units
  • Properties must be located in a low- or moderate-income census tract or meet a rent test where property rents are affordable to tenants who have low or moderate income
  • Haven’t received either a PPP loan or EIDL for COVID-19 in 2020

Small landlords can apply for a loan in the amount the lesser of $100,000 or projected reduction in three-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 working capital, inventory, marketing, refitting for new social-distancing guidelines, operating and emergency maintenance, property taxes, utilities, rent, or supplies. NYFLF loans aren’t forgivable in part or whole. Loans are payable over five years with interest only payments for the first 12 months. The fixed annual interest rate is 3 percent for small businesses and small landlords and 2 percent for not-for-profits. The borrower may repay the loan early without a prepayment penalty.

Pre-applications became available today at noon at nyloanfund.com. The online pre-application should be completed and submitted by the owner of the business with the largest ownership interest or by a member of a not-for-profit’s executive team. Priority is given to industries that have reopened, and applications will be reviewed on a rolling basis. After an online pre-application has been completed and eligibility is determined, a borrower is matched with a participating community development financial institution lender that’ll review the request and contact the borrower to start the full loan application.

If you have any questions regarding the content of this alert, please contact Roger Cominsky, Financial Institutions & Lending Practice Area chair, at rcominsky@barclaydamon.com; Danielle Katz, associate, at dkatz@barclaydamon.com; or Samantha Podlas, associate, at spodlas@barclaydamon.com.

We also have a specific team of Barclay Damon attorneys who are actively working on assessing regulatory, legislative, and other governmental updates related to COVID-19 and who are prepared to assist clients. Please contact Yvonne Hennessey, COVID-19 Response Team leader, at yhennessey@barclaydamon.com or any member of the COVID-19 Response Team at COVID-19ResponseTeam@barclaydamon.com.

Subscribe

Click here to sign up for alerts, blog posts, and firm news.

Subscribe

Sign up to receive our latest news via email

Practice Areas

Featured Industries

New & Emerging Industry Practice Areas

Other

View our Privacy Policy

Featured Media

Alerts

NYS Office of Renewable Energy Siting Proposes New Rules Implementing the Major Renewable Energy Development Program

Alerts

Strict New Criteria for Community Medicaid Program Takes Effect October 1

Alerts

FERC Formalizes Its Practice That States Have a Full Year to Act on Section 401 Certification Requests for Natural Gas Act Infrastructure Projects

Alerts

Have You Received an "Urgent Notice" About Your Trademark?

Alerts

COVID-19: Anticipated RESTAURANTS Act of 2020 Will Establish a $120 Billion Fund for Assistance

Alerts

Post-ARRA COBRA Litigation May Signal COBRA Lawsuits to Come

This site uses cookies to give you the best experience possible on our site and in some cases direct advertisements to you based upon your use of our site.

By clicking [I agree], you are agreeing to our use of cookies. For information on what cookies we use and how to manage our use of cookies, please visit our Privacy Statement.

I AgreeOpt-Out