The loan terms are as follows:
- Loan Amount:
- For landlords, the lesser of (a) $100,000 or (b) projected reduction in 3-months net operating income based on actual reductions in net operating income for the month of April or May 2020.
- For example:
- Actual reduction in net operating income for April 2020: $20,000
- 3-months of reduction in net operating income: $60,000
- Maximum loan size of $60,000
- If the maximum loan size is greater than $100,000, the maximum loan size will be $100,000
- Interest Rate:
- For landlords, the fixed annual interest rate will be 3%.
- For months 1 – 12: Interest only payments, paid monthly.
- For months 13 - 60: interest and principal payments, paid monthly.
- Term: 5 years (60 months).
- Proceeds are required to be used for working capital, refitting for new social distancing guidelines, operating and emergency maintenance, property taxes, utilities, rent, supplies, etc.
- Refinancing of an existing loan is not permitted.
- 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 collateral or personal guarantees are required.
- Prepayment: Borrower may prepay the loan without penalty.
To be eligible for a New York Forward Loan Fund working capital loan, small landlords 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.
- Have no more than 200 units under ownership, and no single property greater than 50 units;
- Properties must either be located in a low or moderate income (LMI) census tract or meet a rent test where property rents are affordable to tenants of low and moderate income;
- Properties must have positive cash flow for a 12-month period prior to NY Forward loan request;
- Properties must have an active forbearance agreement for their mortgage or, proof that they have not missed a monthly debt service payment in the last 12 months, and/or no active mortgage;
- Properties must be current on their property taxes through March 2020;
- Property owners must attest that they will not evict COVID-impacted non-paying tenants;
- Properties must be in good physical condition and be free of violations;
- Have not received a loan from either SBA Paycheck Protection Program (PPP) or SBA Economic Injury Disaster Loan (EIDL) for COVID-19 in 2020;
- 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.
As part of the application, the loan applicant must provide the following documentation:
- Most recently filed tax returns, if available and required by the lender;
- 2019 Income and Expense statement;
- Property Rent Roll showing economic impact;
- Schedule of ownership (name, address, social security number, phone number, email, percentage ownership, photo ID for any owners with more than 20% ownership);
- Executed Attestation Form (to be provided by lender);
- Hardship Letter specifying COVID-19 impacts on jobs and revenues;
- Forbearance Disclosure Statement;
- Evidence of legal formation of business entity (Articles of Incorporations and/or Bylaws); and
- Personal Credit Report (if applicable).
A participating Community Development Financial Institution (CDFI) lender will reach out to the loan applicant to collect the required documentation, conduct any credit checks, and finalize the application review process.
Due to the high expected demand, the number of New York Forward loans will be limited. Applications will be reviewed on rolling basis as regions and industries are phased to reopen. Please note that submitting an application is not indication of eligibility or that funding will be approved.
We therefore recommend applying as soon as possible. In the event the website is overwhelmed, we recommend checking back often to submit your pre-application.