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 mdaus@windelsmarx.com.
Source: Windels Marx
