New York Forward Loan Fund (NYFLF)

New York Forward Loan Fund (NYFLF) is a new economic recovery loan program aimed at supporting New York State small businesses, nonprofits and small landlords as they reopen after the COVID-19 outbreak and NYS on PAUSE.

NYFLF targets the state’s small businesses with 50 or fewer full-time equivalent (FTE) employees (90% of all businesses), nonprofits and small residential landlords that have seen a loss of rental income.

NYFLF is providing working capital loans so that small businesses, nonprofits and small residential landlords have access to credit as they reopen. These loans are available to small businesses and nonprofits that did **not **receive 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, and small landlords. The loans are not forgivable in part or whole. The loans will need to be paid back over a 5-year term with interest. 

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%

Access to loans for small residential landlords will be targeted to owners with residential buildings of 50 units or less and will prioritize loans for residential landlords whose properties are in low and moderate income census tracts or who serve low to moderate income tenants.

The New York Forward Loan Fund is supported by Apple Bank, BNB Bank, BlackRock Charitable Fund, Citi Foundation, Citizens Bank, Deutsche Bank, Evans Bank, Ford Foundation, HSBC Bank, M&T Bank, Morgan Stanley, Mizuho Bank, Ralph C. Wilson, Jr. Foundation and Wells Fargo.

Pre-applications for the New York Forward Loan Fund are now open. This is not a first-come, first-served loan program. Applications will be reviewed on a rolling basis. For small businesses and nonprofits, you are encouraged to prepare your pre-application in advance by taking advantage of the application preparation resources available here. 

Five Community Development Financial Institutions (CDFIs) processing pre-applications are: Ascendus (formerly Accion East), Community Preservation Corporation, National Development Council, Pursuit and TruFund Financial Services. Please do not apply to the participating CDFI lender directly. 

To be eligible for a New York Forward Loan Fund working capital loan, a small business must meet the requirements detailed below. Please note that the pre-application should be completed and submitted by the owner of the business with the largest ownership interest, and that all owners with more than 20% ownership will be required to attest to the information therein. 

• Employ 50 or fewer full-time equivalent (FTE) employees for both small businesses;

• 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 impacted their operations;

• Been in business for at least 1 year as of the date of loan application; and

• Located in the State of New York.

The loan terms are as follows:

• Loan Amount:

  1. Small Businesses: Small businesses can apply for a loan in the amount of the lesser of (a) $100,000 or (b) up to 100% of average monthly revenues in any 3-month period from 2019 or first quarter of 2020.

  2. Nonprofits: Nonprofits can apply for a loan in the amount of the lesser of (a) $100,000 or (b) up to 100% of average monthly expenses in any 3-month from 2019 or first quarter of 2020.

  3. Small Residential Landlords: Small Residential Landlords can 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.

• Interest Rate:

  1. Small businesses and residential landlords: The fixed annual interest rate on the loan will be 3%.

  2. Nonprofits: The fixed annual interest rate on the loan will be 2%.

• Repayment: 

  1. For months 1 – 12: Interest only payments, paid monthly. 

  2. For months 13 - 60: Interest and principal payments, paid monthly.

• Term: 5 years (60 months).

• Proceeds:

  1. Proceeds are required to be used for working capital, inventory, marketing, refitting for new social distancing guidelines, operating and emergency maintenance, property taxes, utilities, rent, supplies, etc.

  2. Refinancing of an existing loan is not permitted. 

  3. The loan applicant will be required to detail anticipated use of funds when they apply.

• Borrower Fees: No application fees. Late fee will be assessed for missed payments.

• Recourse: No specific collateral is required to be eligible (e.g., you do not need to have access to any specific real estate or equipment). Please note that this program requires a blanket first or second lien on business assets will be filed by the community lender and any owners with more than 20% ownership must sign a personal guarantee.

• Prepayment: Borrower may prepay the loan without penalty.

To fill out a pre-application and match with a participating CDFI lender, go to nyloanfund.com.

• New York Forward Loan Fund Frequently Asked Questions

• New York Forward Loan Fund Presentation

• New York Forward Loan Fund Information Flyer – Bengali

• New York Forward Loan Fund Information Flyer – Spanish

• ​New York Forward Loan Fund Information Flyer – Haitian Creole​

• New York Forward Loan Fund Information Flyer – Korean

• New York Forward Loan Fund Information Flyer – Russian

• New York Forward Loan Fund Information Flyer – Traditional Chinese