Unlike SBA Program, All Loans Must Be Repaid
May 26, 2020
The State of New York has launched the New York Forward Loan Fund. It targets small businesses that did not receive funds from the Small Business Administration’s Paycheck Protection Program or the Economic Injury Disaster Loan program related to COVID-19. It differs from federal programs in that all funds must eventually be repaid.
According to the state’s economic development website, the fund is supported by Apple Bank, BNB Bank, BlackRock Charitable Fund, Citi Foundation, Evans Bank, Ford Foundation, M&T Bank, Morgan Stanley, Ralph C. Wilson, Jr. Foundation and Wells Fargo. Five Community Development Financial Institutions (CDFIs) will be processing pre-applications on June 1, 2020: Accion East, Community Preservation Corporation, National Development Council, Pursuit and TruFund Financial Services.
The state says 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.
The working capital loans are 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.
The geographic proportionality goals for the New York Forward Loan Fund for small businesses are:
Capital Region 4%
Central NY Region 4%
Finger Lakes Region 4%
Hudson Valley Region 12%
Long Island Region 18%
Mohawk Valley Region 4%
NYC Region 30%
North Country Region 4%
Southern Tier Region 4%
Western NY Region 8%
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