The state has announced a new $100 million loan program for companies, landlords and nonprofit organizations that were shut out of previous federal assistance programs.
The New York Forward Loan Fund offers up to $100,000 to small businesses, small landlords and nonprofits that did not receive funding from the Small Business Administration’s Paycheck Protection Program and Economic Injury Disaster Loans.
Eligible nonprofits can apply for a 60-month no-fee loan at 2 percent fixed interest, while eligible small businesses and small landlords can apply for a 60-month no-fee loan with a 3 percent fixed interest rate. The maximum loan amount is $100,000 and can be used for working capital including payroll, operating and emergency maintenance, property taxes, utilities, rent and supplies, according to a joint statement from Empire State Development and Homes and Community Renewal, the two agencies heading the loan program.
More than $100 million is expected to be available in the program, with 65 percent reserved for small businesses, 30 percent for small landlords and 5 percent for nonprofit organizations.
Loans for small landlords will be aimed at owners of residential buildings with 50 units or less. Landlords with properties in low- and moderate- income census tracts will receive priority.
Apple Bank, BNB Bank, Evans Bank, M&T Bank, Morgan Stanley and Wells Fargo have pledged support for the new fund, which has also received philanthropic commitments from the BlackRock Charitable Fund, Citi Foundation, Ford Foundation and the Ralph C. Wilson, Jr. Foundation.
Applicants are required to prove they employ 20 or less full-time equivalent employees and have gross revenues of less than $3 million. The fund will emphasize supporting minority- and women-owned businesses, and landlords who own small multifamily properties in low- and moderate-income communities.
The application period will open on Tuesday, May 26.
For more information and loan applications visit nyloanfund.com.