Economic Recovery and COVID-19 Loans for Small Businesses

Important Information about Small Business Economic Recovery and COVID-19 Loans and Assistance

New York State is working to support small businesses throughout the COVID-19 crisis, by providing up-to-date resources and information about economic recovery and COVID-19-related loans, funding and business counseling. See below for details about applying for the New York Forward Loan Fund, targeted toward small businesses, nonprofits and small landlords, and for U.S. Small Business Administration (SBA) loans. The SBA loans are part of the $2 trillion federal stimulus bill (CARES Act) passed on March 27—and an additional $484 billion aid package signed on April 24.

New York Forward Loan Fund (NYFLF)

The New York Forward Loan Fund (NYFLF) is a new economic recovery loan program aimed at supporting New York State small businesses, nonprofits and small landlords as they reopen after the COVID-19 outbreak and NYS on PAUSE.  The NYFLF targets the state’s small businesses with 20 or fewer full-time equivalent (FTE) employees (90% of all businesses), nonprofits and small landlords that have seen a loss of rental income.  The NYFLF is specifically timed to support businesses and organizations as they proceed to reopen and have upfront expenses to comply with guidelines (e.g., inventory, marketing, refitting for new social distancing guidelines) under the New York Forward Plan.   

Pre-applications for the New York Forward Loan Fund are now open.  Priority will be given to industries and regions that have been reopened.  This is not a first-come, first-served loan program.  Applications will be reviewed on a rolling basis as regions and industries reopen. 

For small businesses and nonprofits that are in industries and regions that have not yet reopened, you are encouraged to prepare your pre-application in advance by taking advantage of the application preparation resources available here.  

  • Small businesses and nonprofits must employ 20 or fewer full-time equivalent (FTE) employees; 
  • Small businesses must have gross revenues of less than $3 million per year;
  • Nonprofits must provide direct services and have an annual operating budget of less than $3 million per year; and
  • Have not received a loan from either SBA Paycheck Protection Program (PPP) or SBA Economic Injury Disaster Loan (EIDL) for COVID-19 in 2020.

Click here for more information on how to apply

 

SBA Paycheck Protection Program (PPP)

The PPP provides $659 billion in loans to small business, nonprofits, sole proprietors and other eligible entities with fewer than 500 employees. Loans of up to $10 million can be obtained to cover certain business costs including employee payroll, rent, insurance, paid sick or medical leave, interest on mortgage obligations and utilities. 

  • PPP loans cover costs incurred February 15, 2020 – June 30, 2020
  • Up to 8 weeks of eligible expenses may be forgiven
  • Loan repayments will be deferred for 6 months

Click here for more information on how to apply

 

SBA Subsidy Loan Program

The $2 trillion CARES Act also provides benefits for businesses with existing SBA loans.  Eligible businesses can apply for the SBA to pay interest and principal payments for 6 months on their existing SBA loans.

  • For SBA loans made prior to March 27, 2020
  • SBA loan types eligible: 7(a), community advantage, 504 and microloans.

Click here for more information on how to apply

 

SBA Economic Injury Disaster Loan (EIDL) Program **closed**

Provides small businesses and nonprofits with low-interest loans of up to $2 million to help overcome other financial losses due to COVID-19. 

 

Additional Grants & Funding Resources

Organizations Available to Assist


New York's statewide community network of Small Business Development Centers, Entrepreneurship Assistance Centers and Community Development Financial Institutions are available to help guide your business through the loan application process.

NY Small Business Development Centers (SBDC)

The New York Small Business Development Centers (NYSBDC) provides small business owners and entrepreneurs in New York with the highest quality, confidential business counseling, training, and business research at no cost.
Click here

Entrepreneurship Assistance Centers (EAC) Contact List

Entrepreneurship Assistance Centers (EAC) provide instruction, training, technical assistance and support services to new and aspiring entrepreneurs in local communities statewide.
Click here

Community Development Financial Institution (CDFI) Contact List

CDFIs are local financial service providers with locations throughout New York State, and often are the sole provider of banking and other financial services in communities that are not served by traditional banks and financial institutions.
Click here

COVID-19 Business Mentor NY Volunteer Task Force

New York State and business leaders have partnered to enlist industry volunteers to help businesses with guidance on SBA loan applications.

Limited Scope Pro Bono Legal Advice for PPP Loans

Lawyers from New York firms are ready and able to answer questions from small businesses and nonprofits, and offer resources and guidance to assist with applications in connection with the Paycheck Protection Program. Connect through the link below.