Businesses grappling with the economic impact of the ongoing COVID-19 crisis have the opportunity to apply for financial assistance through a variety of Federal, State and Local programs.  Our team at Farrell Fritz actively negotiates and secures financial incentive packages for small and medium sized businesses and nonprofit organizations throughout New York State. We stand ready to assist businesses navigating the various government assistance programs that are presently available to leverage and secure eligible financial incentives. 

SBA Economic Injury Disaster Loan (“EIDL”)

The SBA is offering low-interest federal disaster loans to provide working capital to small businesses suffering substantial economic injury as a result of COVID-19 throughout New York State.

A business can apply to both the PPP and EIDL programs and receive loans under both programs; however, loan proceeds cannot be used for the same purpose. For more details on how the PPP and EIDL programs work together, please contact the COVID-19 Crisis Response Team.

Eligibility Requirements:

• Business in existence on January 31, 2020;
• Business with fewer than 500 employees;
• Cooperatives, ESOPs, and tribal small businesses with fewer than 500 employees;
• Sole proprietors;
• Independent contractors;
• Most private nonprofits;
• Some businesses with more than 500 employees, but under SBA Size Standards. A size standard, which is usually stated in number of employees or average annual receipts, represents the largest size that a business may be to remain classified as a small business for SBA programs. The definition of “small” varies by industry.  For more information see: https://www.sba.gov/document/support–table-size-standards

Loan Details: 

• Maximum loan amount: $2 million;
• 75% fixed interest rate for businesses;
• 75% fixed interest rate for non-profits;
• Term: up to 30 years;
• First payment due one year after origination;
• Up to $200,000 can be approved without a personal guarantee;
• Loans approved based on credit scores and no first-year tax returns are required;
• Borrowers do not need to prove they could not get credit elsewhere;
• Loans of more than $25,000 require collateral, which can be the general security interest in business assets in lieu of real estate;
• Loans of $25,000 or less do not require collateral;
• Borrowers must allow the SBA to review their tax records

Emergency $10,000 Grant: 

• Eligible EIDL applicants can also receive a $10,000 emergency grant;
• The grant will made available within a few days of application submission;
• The applicant is not required to repay the grant, even if they are subsequently denied a loan.

To receive the $10,000 emergency grant, it is not necessary for a business to have an approved EIDL loan.  However, if the business is able to secure a PPP loan the $10,000 grant will be subtracted from the PPP loan forgiveness amount.

To Apply: https://covid19relief.sba.gov/#/

NYC Small Business Continuity Loan Fund

Businesses with fewer than 100 employees that can demonstrate at least a 25% decreased in revenue as a result of COVID-19 can apply for an interest free loan up to $75,000 to help ensure businesses continuity.  Awards are given on a first come, first serve basis.

Eligibility Criteria for the NYC Small Business Continuity Loan Fund

Business must:

• Be located within the five boroughs of New York City;
• Demonstrate that the COVID-19 outbreak caused at least a 25% decrease in revenue;
• Employ 99 employees or less in total across all locations;
• Demonstrate ability to repay the loan;
• Have no outstanding tax liens or legal judgments (Business owners who are otherwise eligible and currently on a tax lien payment plan should proceed with the application). 

More information can be found here: https://www1.nyc.gov/nycbusiness/article/nyc-small-business-continuity-loan-program

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