New York State created a $100 million New York Loan Forward Fund to provide working capital loans of up to $100,000 to help small businesses in New York State with 20 or fewer employees, annual revenues less than $3 million, that have been in business for at least one year, and have been impacted financially by the COVID-19 shutdown.
Loans are only available to eligible small businesses that have not received either a federal Paycheck Protection Program (PPP) or an Economic Injury Disaster Loan (EIDL) for COVID-19 in 2020.
This is not a first-come, first-served loan program – applications will be open based on the industries and regions that have been reopened. Applications will be reviewed on a rolling basis when industries and regions reopen and funds have been proportioned geographically. Transportation companies in regions that have not yet reopened are encouraged to prepare a “pre-application” now!
Key Points of the New York Forward Loan Fund:
- The loans are not forgivable in part or whole
- Loan Amount: the lesser of (a) $100,000 or (b) 100% of average monthly revenues in any 3-month period from 2019 or first quarter of 2020
- 5-year term with 3% interest
- No collateral required
- Repayment: For months 1–12, Interest only payments, paid monthly. For months 13–60, interest and principal payments, paid monthly
- No prepayment penalty
- Loans can be used for working capital, inventory, marketing, refitting for social distancing, operating and emergency maintenance, property taxes, utilities, rent, and supplies
- Loans may not be used to refinance an existing loan
If you would like additional information about New York State’s loan program for your transportation company, contact Matt Daus at [email protected].
Source: Windels Marx