Financial Assistance Available to NYC Businesses Harmed by the COVID-19 Outbreak
As New York City continues to be on a government mandated “pause,” there are new programs available that offer financial assistance to local New York City businesses that are suffering as a result of the shutdown caused by the COVID-19 pandemic. The following is a summary of these programs.
NYC Small Business Continuity Loan Fund
Who Can Apply: Businesses within the five boroughs of New York City, that employ between one and 99 employees across all locations, have no outstanding tax liens or legal judgments, can demonstrate at least a 25% decrease in revenue as a result of the COVID-19 outbreak, and can demonstrate the ability to repay the loan.
The Relief Offered: A zero interest loan up to $75,000 to help retain employees and ensure business continuity.
Revenue Loss Calculation: There are no details provided as to how the revenue loss calculation will be made.
Documentation: Financial documents can include point-of-sales reports, bank statements, quarterly sales tax filings, 2019 tax returns, or CPA-certified profit & loss statements.
Pre-Application for the NYC Small Business Continuity Loan Fund can be found here: https://www.surveymonkey.com/r/ZL5N8XL
NYC Employee Retention Grant Program
Who Can Apply: Businesses, including non-profits, within the five boroughs of New York City that have been in business at least six months, employ between one and four employees across all locations, have no outstanding tax liens or legal judgments and can demonstrate at least a 25% decrease in revenue as a result of the COVID-19 outbreak.
The Relief Offered: A grant covering up to 40% of payroll for two months, up to a maximum of $27,000.
Revenue Loss Calculation: The City will compare average revenue for two months in 2020 after the COVID-19 impact to both (i) average revenue for the same two-month period in 2019; and (ii) average monthly revenue based on total 2019 revenue. If either calculation shows at least a 25% decrease in revenue, the business may be eligible for this grant.
Documentation: Financial documents can include point-of-sales reports, bank statements, quarterly sales tax filings, 2019 tax returns, or CPA-certified profit & loss statements. To determine the grant amount, the most recent two months of payroll will need to be uploaded, as well as a signed Participation Affidavit verifying eligibility, and bank account information.
You can find out more information here: https://www1.nyc.gov/nycbusiness/article/nyc-employee-retention-grant-program
NYC COVID-19 Response and Impact Fund
Who Can Apply: New York City based non-profits that are trying to meet the new and urgent needs of the city. Priority will be given to non-profits addressing essential healthcare and food insecurity as well as arts and culture. The organization must be a 501(c)(3) non-profit with annual non-governmental income of $20 million or less, that receives New York City or New York State government funding, and equitably delivers effective programs and services for New York City residents. The loans are geared toward non-profits with an annual revenue of at least $750,000.
Relief Offered: Interest-free loans that will range in amounts from $100,000 up to $3 million. The loans will be unsecured and will have terms of either 12, 24, or 36 months. Financial and cash flow planning coaching will also be available to the non-profits that receive these loans. There has also been an indication that there will be grants available for non-profits but there have not been any further details provided at this time.
The application is not yet available, but you can find more information here: https://www.nycommunitytrust.org/covid19/
Small Business Administration Loans
Under the Coronavirus Preparedness and Response Supplemental Appropriations Act, signed on March 6, 2020, businesses injured by the outbreak may be eligible for Economic Injury Disaster Loans funded by the Small Business Administration.
You can find more information in our previous alert here https://www.thsh.com/publications/small-business-loans-amid-the-coronavirus-crisis.
Note that since that was published, eligibility was extended from three counties to all of New York State.
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