COVID LOANS ARE AVAILABLE TO NONPROFITS THROUGH NEW YORK FORWARD LOAN FUND
In response to the economic hardships caused by the COVID-19 pandemic, New York has created a loan program called the New York Forward Loan Fund (NYFLF) aimed at small businesses, small landlords, and nonprofits.
NYFLF loans will not be forgiven. The loans must be repaid over 5 years with interest. Loans are not given on a first-come, first-served basis. Different regions and industries are given priority. Borrowers that received funding through the Paycheck Protection Plan (PPP) or SBA Economic Injury Disaster Loans (EIDL) for COVID-19 in 2020 are not eligible.
To be eligible, a nonprofit must meet these requirements
- Organized as 501(c)(3) or faith-based organization (cannot be for support of religious worship or activities);
- Employ 20 or fewer full-time equivalent (FTE) employees;
- Provide direct services to New Yorkers for example daycare services, legal aid, food banks, soup kitchens, after school programs, senior services, educational programs, clothing banks;
- Have an annual operating budget of less than $3 million per year;
- Have suffered a direct economic hardship as a result of COVID-19 related social distancing policies and stay-at-home order that have materially impacted their operations;
- Been in operation for at least 1 year as of the date of loan application; and
- Located in the State of New York.
The amount that can be borrowed is the amount of average monthly expenses for a 3-month period prior to the COVID-19 outbreak, but in no event more than $100,000. The interest rate is 2%. Repayment is interest-only for the first 12 months, and interest and principal for the remaining 48 months.
Loan proceeds can be used only for working capital, inventory, marketing, refitting for new social distancing guidelines, operating and emergency maintenance, property taxes, utilities, rent, and supplies.
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This is not intended to be legal advice. You should contact an attorney for advice regarding your specific situation.
Be sure to visit our Coronavirus Resource Page for more information.
Gary M. Schuster is partner at the firm and practices business, non-profit, and arts and entertainment law. He can be reached at 866-303-9595 toll free or 845-764-9656 and by email.