We would like to update you on the following information that can provide financial assistance in these difficult times.
1. The SBA is providing low-interest working capital loans of up to $2 million to small businesses and nonprofits affected by the coronavirus.
- The program allows fixed-rate loans of 3.75% for businesses and 2.75% for non-profit organizations, with terms up to 30 years.
- The SBA Disaster Loan Program is separate from the SBA Guaranty Loan program. Small businesses that have existing SBA loan programs are still eligible for a disaster loan.
- More information can be found here: https://disasterloan.sba.gov/ela/Information/DisasterLoanFactSheets
- Applicants need to apply directly with the SBA. Click here.
2. NYC is offering two programs of “Financial Assistance for Businesses Impacted by COVID-19” as follows:
Businesses with fewer than 5 employees, can receive a grant to cover 40% of payroll costs for two months to help retain employees. Businesses with fewer than 100 employees are eligible for a zero-interest loan of up to $75,000 to help mitigate losses in profit. In order to qualify, businesses 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
- Have been in operation for at least 6 months
- Have no outstanding tax liens or legal judgments
- Demonstrate ability to repay the loan (for the second category)
Click here to learn more about these programs.
We will keep you informed with further updates.