Governor Andrew M. Cuomo today announced, May 22nd, the launch of the $100 million New York Forward Loan Fund to provide flexible and affordable loans to help small businesses, focusing on minority and women owned small businesses, that did not receive federal COVID-19 assistance. The state will take a smart, targeted approach for distributing these loans, focusing on businesses with 20 or fewer employees and less than $3 million in gross revenues. Businesses interested in receiving a loan should visit esd.ny.gov/nyforwardloans.
The state pension fund is putting $50 million toward Paycheck Protection Program loans for small businesses harmed by the coronavirus pandemic, state Comptroller Thomas DiNapoli tells "Represent NYC".
The Common Retirement Fund money will be lent to qualifying small businesses across the state by Pursuit in Albany, a private lender formerly called the New York Business Development Corp. The loans are for up to $350,000 per applicant and 25% must go to minority- and women-owned businesses, he said.
New York State Comptroller Thomas P. DiNapoli announced this week, and spoke to "Represent NYC" about the New York State Common Retirement Fund (the Fund) is putting $50 million toward the federal Paycheck Protection Program (PPP), a component of the latest coronavirus relief package. Under the PPP, employers can secure loans that will be forgiven by the federal government if employees are kept on the payroll for eight weeks and the money is used for payroll, rent, mortgage interest, or utilities.
The Fund’s commitment will supplement PPP loans being administered by Pursuit (formerly New York Business Development Corporation). Returns to the Fund will be consistent with U.S. Treasury securities.
“New York small businesses are facing unprecedented challenges that have put more than a million men and women out of work,” DiNapoli said. “We’re doing what we can to help small businesses keep employees on their payroll, even if they may have paused operations. PPP loans are critical to New York businesses trying to survive through this public health and economic crisis. We are continuing to look for opportunities to help New Yorkers that are consistent with our fiduciary responsibility to the pension fund.”
To help make sure the Fund’s allocation benefits New York’s “main street” businesses, it has set certain parameters with Pursuit, including:
- Exclusive availability to New York businesses.
- No loan minimum, with maximum loan set at $350,000.
- 25 percent of loans are targeted for Minority and Women-Owned Business Enterprises.
Prior to the Fund’s allocation, Pursuit has processed PPP loans totaling nearly $200 million to small businesses. PPP loans are federally guaranteed. New York businesses can sign-up to apply for PPP through Pursuit at pursuitlending.com/pppapply.
For more information on the PPP visit the SBA. The latest $484 billion relief package included an additional $310 billion for the PPP.