Small Businesses That Received EIDL Or PPP Loans May Now Be Eligible for The NY Forward Loan Fund
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.