New York Forward Loan Fund to provide working capital
Empire State Development and Homes and Community Renewal have detailed the $100 million New York Forward Loan Fund aimed at providing working capital loans to small businesses. The program focuses on minority woman-owned business enterprises, small landlords and nonprofits that did not receive funding from the Small Business Administration’s Paycheck Protection Program and Economic Injury Disaster Loans. The New York Forward Loan Fund will target minority- and women-owned businesses, and landlords who own small multi-family properties in low- and moderate-income communities, which have traditionally been underbanked or have difficulty accessing capital.
Eligible non-profits 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. Loan funds can be used for working capital including payroll, operating and emergency maintenance, property taxes, utilities, rent and supplies.
Eric Gertler, acting commissioner and president and CEO-designate of ESD, noted witha strong public-private partnership with banks and foundations from across the state, “we are able to help these organizations manage during these difficult times and prepare for the stronger, healthier New York of tomorrow.”
The New York Forward Loan Fund works by enabling five Community Development Financial Institutions to make loans to the target borrowers: Accion East, Community Preservation Corporation, National Development Council, Pursuit, and TruFund Financial Services. Six banks have pledged support for the New York Forward Loan Fund: Apple Bank, BNB Bank, Evans Bank, M&T Bank, Morgan Stanley and Wells Fargo. Additionally, the fund has received philanthropic commitments from the BlackRock Charitable Fund, Citi Foundation, Ford Foundation, and the Ralph C. Wilson, Jr. Foundation.
New York State is home to nearly 487,000 small businesses that employ fewer than 20 people each, representing 91 percent of the state’s small businesses. Applicants are required to prove they employ 20 or less full-time equivalent employees and have gross revenues of less than $3 million.
The New York Forward Loan Fund is the latest program from ESD aimed at providing critical assistance to New York’s businesses in response to the COVID-19 crisis. Additional initiatives launched by ESD include $7.5 million in grants to over 70 nonprofit organizations for technical assistance to small businesses, $400,000 in competition grant funding from the New York Manufacturing Extension Partnership to accelerate production of personal protective equipment and respiratory care equipment, and $21 million in loan capital to four Community Development Financial Institutions to support U.S. Small Business Administration Paycheck Protection Program for small dollar loans.