Additionally, the program goal of providing at least 60% of loans to Minority- and Women-Owned Business Enterprises (MWBEs) remains, and that goal will not change due to the newly-expanded eligibility.Įligible small businesses and small residential landlords can apply for a 60-month, no-fee loan with a 3% fixed interest rate while eligible non-profits can apply for a 60-month, no-fee loan at 2% fixed interest. Small business who did not receive any federal assistance are still eligible and encouraged to apply. The fund is prepared to process the new applications from this change while also working with existing applicants. This is limited to small businesses who received $50,000 or less in PPP assistance. Starting today, NYFLF Community Development Financial Institutions (CDFIs) will contact previously ineligible applicants to determine if they are still interested in funding and begin the underwriting process. Legislative criteria restricted how the government assistance could be spent, and oftentimes PPP amounts were a fraction of what was needed and requested. Through discussions with lenders and applicants, it became apparent that PPP loans did not go far enough to support New York-based small businesses. However, some NYFLF applicants who needed assistance were deemed ineligible because they had already received PPP funds. Companies with 20 employees or less make up 90% of New York’s business community, and it was critical to provide a funding lifeline to those businesses shut out of federal assistance. The goal of the NYFLF was to help New York-based small businesses that did not receive PPP funding with flexible working capital to reopen and adapt to post-COVID needs. When the NYFLF launched in May, the federal Small Business Administration had just issued rules regarding companies’ eligibility for federal assistance. Providing assistance and opportunity – particularly to our state’s minority- and women-owned businesses – to help them reopen is essential toward revitalizing our economy and building New York back better.” This conditional change will provide the Fund’s network of lenders and financial institutions with greater flexibility and enable them to provide more small businesses with working capital to cover expenses associated with reopening.ĮSD Acting Commissioner, and President and CEO-delegate Eric Gertler said, “The coronavirus pandemic was an unprecedented challenge to the state’s business community, of which ninety-eight percent are small businesses. Previously Ineligible New York State Small Businesses Can Receive Low-Interest Working Capital LoansĪvailable to Small Businesses That Received PPP Assistance of $50,000 or LessĮmpire State Development (ESD) today announced that Paycheck Protection Program (PPP) recipients are now eligible to receive low-interest loans from the New York Forward Loan Fund (NYFLF). EMPIRE STATE DEVELOPMENT EXPANDS NEW YORK FORWARD LOAN FUND TO INCLUDE PAYCHECK PROTECTION PROGRAM RECIPIENTS
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