EIDL Borrowers Now Eligible for New York Forward Loan Fund
New York State just announced that the New York Forward Loan Fund (NYFLF) eligibility requirements have been changed, easing the requirements for many small businesses.
Economic Injury Disaster Loan (EIDL) borrowers are now eligible for the fund, and program expansion now allows firms with up to 50 employees to participate. Funding is still available.
A message from the New York State Division of Small Business and Technology Development is below:
Attention New York State Small Business Owners!
I wanted to share with you an important and exciting program change regarding the 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 residential landlords as they reopen after the COVID-19 outbreak and NYS on PAUSE.
The NYFLF now targets the state’s small businesses with*50* or fewer full-time equivalent (FTE) employees, nonprofits and small residential landlords that have seen a loss of rental income.
When the NYFLF launched in May, the federal Small Business Administration had just issued rules regarding companies’ eligibility for federal assistance. The goal of the NYFLF was to help New York-based small businesses that did not receive PPP or EIDL funding with flexible working capital to reopen and adapt to post-COVID needs.
However, some NYFLF applicants who needed assistance were deemed ineligible because they had already received PPP or EIDL funds. Through discussions with lenders and applicants, it became apparent that PPP and EIDL loans did not go far enough to support New York-based small businesses. Legislative criteria restricted how the government assistance could be spent, and oftentimes PPP and EIDL amounts were a fraction of what was needed and requested.
Effective immediately, small businesses and non-profits that received a PPP loan of $500,000 or less or EIDL loans of $150,000 or less can be eligible for a NYFLF loan:
An Eligible Small Business must:
- Employ *50* or fewer full-time equivalent (FTE) employees;
- Have gross revenues of less than *$5 million* per year;
- Must not have received a U.S. Small Business Administration Paycheck Protection Program of greater than $500,000 or an Economic Injury Disaster Loan (EIDL) for COVID-19 of greater than $150,000;
- Have suffered a direct economic hardship as a result of COVID-19 related social distancing policies and stay-at-home order that have materially impacts their operations;
- Been in business for at least 1 year as of the date of the application; and
- Be located in the State of New York.
Click here to view the NYFLF Presentation: New York FLF Presentation V18 1.21.21
Pre-applications are now open online at www.nyloanfund.com