New York City Offers Financial Assistance For Small Businesses Impacted by COVID-19

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New York City is offering to provide financial assistance to small businesses impacted by COVID-19 through the NYC Small Business Continuity Loan Fund.

NYC Small Business Continuity Loan Fund

New York City is offering certain small businesses interest-free loans of up to $75,000 to help retain employees and ensure business continuity.  The loan may be deployed for a variety of uses, including working capital, inventory or other investments.

Who is Eligible

To be eligible, a business must meet the following requirements:

  • Employ fewer than 100 employees in total across all locations
  • Be located within the five boroughs of New York City
  • Have been in operation for at least 2 years
  • Demonstrate that the COVID-19 outbreak caused at least a 25% decrease in revenue
  • Demonstrate ability to repay the loan
  • Have no outstanding tax liens or legal judgments

How to Calculate Revenue Loss:

To calculate revenue loss as a result of COVID-19, average revenue for two months in 2020 after the COVID-19 impact will be compared to both: (1) average revenue for the same two-month period in 2019, and (2) average monthly revenue based on total 2019 revenue.  The city will check to see if either calculation shows at least a 25% decrease in revenue.

Businesses will need to submit financial documentation to verify their loss of revenue as a result of COVID-19, which can include: point-of-sales reports or screenshots, sales reports (demonstrating fees collected or earned income), bank statements, transaction level data from banks, quarterly sales tax filings, tax returns, or profit & loss statements.  To confirm eligibility, businesses will also need to submit a signed affidavit verifying that they are eligible for the program.

How to Apply:

Businesses may begin the multi-step application process online through the New York City Department of Small Business Services website.

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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