MONEY FOR SMALL BUSINESSES, NON-PROFITS AND LANDLORDS
The New York Forward Loan Fund (“NYFLF”) -- a partnership formed by New York State along with a number of large banking institutions -- seeks to help small businesses, non-profits and certain residential landlords recover from the COVID-19 government shutdowns.
The aid is available to small businesses and non-profits that did not receive an SBA Paycheck Protection Program Loan greater than $50,000, or an Economic Injury Disaster Loan of any amount, except for the EIDL advance grant of up to $10,000. Small residential landlords are also permitted to apply.
A landlord must be the owner of a residential building having 50 units or less (with no more than 200 units under ownership in the aggregate); suffered direct economic hardship as a result of COVID-related social-distancing guidelines or stay-at-home orders that materially impacted operations; and must attest that it will not evict COVID-impacted non-paying tenants. (The property must also be in “good physical condition,” current on property taxes through March 2020, along with other requirements.)
The initial funding round is reportedly in excess of $100,000,000, with 30% being reserved for small landlords. The latter may apply for a loan in the amount the lesser of (a) $100,000 or (b) projected reduction in 6-months’ net operating income based on actual reductions in net operating income for the month of April or May 2020; with a fixed annual interest rate of 3%. (Loans to properties in low and moderate “income census tracts,” or where low to moderate income tenants reside, will be given priority.)
Pre-applications and more information on NYFLF can be found at: https://www.connect2capital.com/partners/new-york-forward-loan-fund/
If you are a residential landlord trying to navigate the COVID-19 strictures and are in need of assistance, contact one of our Newman Ferrara attorneys by calling 212-619-5400.