Cover photo for New York Forward Loan Fund

New York Forward Loan Fund

Empire State Development

The New York Forward

Loan Fund 2 is:

  • A state-sponsored program for stable businesses looking to grow

  • Simple, affordable and business-friendly

  • A source for free business guidance from community-based experts

  • Accessible from anywhere in the state through a virtual platform

Eligible businesses and nonprofits must have:

  • Existing operations in New York State

  • 100 or fewer full-time employees

  • Less than $5 million in gross annual revenue

  • Been in business for at least 1 year prior to application

  • Demonstrated ability to repay loan through previous and projected cash flow


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.

Application Instructions

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


Release Date

June 1, 2020

Financial Instrument


Updated March 22, 2024

Image Credit: Mitch Barrie

This information was gathered from public sources. Ambrook is not responsible for or able to affect the results of any financial programs listed, nor are they responsible for any incorrect information that is listed or is on the hyperlinked external sites. All information is subject to change.

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