Help for Small Businesses
Economic Injury Disaster Loan (EIDL) & Emergency Economic Injury Grants
- These are low interest, fixed-rate loans.
- When you apply for an EIDL loan you are eligible for an emergency advance of up to $10,00 to small businesses and private non-profits (these advances do not need to be repaid under any circumstances).
- To access the advance, you must first apply and be approved for an Economic Injury Disaster Loan and then request the advance from the lender
The Paycheck Protection Program (PPP)
- A forgivable loan program at SBA for small businesses and certain nonprofits with less than 500 employees, self-employed, and gig workers to help them from going under during the crisis.
- A new round of PPP loans became available on January 11, 2021 — starting with businesses that have not previously received a loan.
- On Wednesday, January 13, businesses that have received a PPP loan previously may apply for a second round.
- A borrower is generally eligible for a Second Draw PPP Loan if the borrower previously received a First Draw PPP Loan and will or has used the full amount only for authorized uses; has no more than 300 employees; and can demonstrate at least a 25% reduction in gross receipts between comparable quarters in 2019 and 2020.
- More lenders will be added in the days and weeks following January 11. Please be in touch with your existing lender for guidance or use the link below to find a lender.
- Provides cash flow assistance through 100% federally guaranteed loans to employers who maintain their payroll during the crisis.
- Borrowers may be eligible for loan forgiveness if the funds are used for eligible payroll costs, payments on business mortgage interest payments, rent, or utilities during either the 8- or 24-week period after disbursement. More info here.
- PPP loans have an interest rate of 1% for amounts that do not qualify for forgiveness.
- Loans issued prior to June 5, 2020 have a maturity of 2 years. Loans issued after June 5, 2020 have a maturity of 5 years.
To apply for the Paycheck Protection Program, you must work with an eligible PPP lender.
You can go to this website from the Small Business Administration to be matched with a participating lender near you.
To find detailed memos such as FAQs about the PPP program, click here.
Small Business Debt Relief Program
- The Small Business Debt Relief Program will provide immediate relief to small businesses with non-disaster SBA loans – in particular 7(a), 504, and microloans.
- Under the program, SBA will cover ALL loan payments on these SBA loans – including principal, interest, and fees for SIX months
- This relief will also be available to new borrowers who take out loans within 6 months of the President signing the bill into law.
- This does not apply to the PPP loans.
NEW YORK STATE
Consumer and small businesses property and casualty premium deferral
- For a 60 day period, consumers and small businesses experiencing financial hardship due to COVID-19 may defer paying premiums for property and casualty insurance, including auto, homeowners, renters, workers comp, medical malpractice, livery and taxi.
- No late fees will be assessed and no negative data will be reported to credit bureaus during this time, and late payments will be payable over a one-year period.
COVID-19 Business Counseling
- The Empire State Development Board of Directors approved $7.5 million in COVID-19 Business Counseling support to 70 non-profit partners across New York State.
- The funding will enable these organizations to provide small businesses with necessary guidance to secure disaster assistance, such as Small Business Administration Economic Injury Disaster Loans, amid the COVID-19 pandemic.
- Up to 24 Entrepreneurship Assistance Centers and up to 23 Small Business Development Centers will receive $5 million, with an additional $2.5 million awarded to up to 23 Community Development Financial Institutions.
NEW YORK CITY
- Assistance & Guidance for NYC Businesses Impacted Due to Novel Coronavirus can be found here
- The NYC Department of Small Business Services has developed a survey in order to collect data on business-related impacts due to the virus- the information collected will help the City better respond to business challenges during this time.
- If you’re a small business owner in NYC affected by COVID-19, visit nyc.gov/covid19biz or call 311 for updates and information on grants
- To help small businesses deal with the impact of COVID-19, the City has launched the Employee Retention Grant Program to help retain employees as businesses face decreased revenue.
- This program is available to New York City businesses with one to four employees that can demonstrate at least a 25% decrease in revenue as a result of COVID-19.
- Eligible businesses will receive a grant covering up to 40% of their payroll for two months. Businesses can access up to $27,000.
- Information here
Small Business Continuity Loan
- The Small Business Continuity Loan Program is available for businesses with fewer than 100 employees.
- These are interest free loans of up to $75,000 and can be used to cover operational costs.
- For more information visit NYC.gov/covid19biz
Community Development Financial Institutions (CDFIs)
Community Development Financial Institutions (CDFIS) share a common goal of expanding economic opportunity in low-income communities by providing access to financial products and services for local residents and businesses. CDFIs strive to foster economic opportunity by providing capital and credit in areas often difficult for traditional financial institutions to serve.
CDFIs in NY-12:
East River Development Alliance Federal Credit Union
13-03B 40th Avenue
Long Island City, NY 11101
Community Partnership Development Corporation
242 West 36th Street
New York, NY 1001
Community Preservation Corporation
220 E 42nd Street
New York, NY 10017
Entertainment Industries FCU
550 Madison Ave.
New York, NY 10022
Grameen America, Inc. Loan Fund
150 West 30th Street
New York, NY 10001
Lower East Side Peoples Federal Credit Union
37 Avenue B
New York, NY 10009
National Minority Supplier Development Council Business Consortium Fund, Inc.
575 Lexington Avenue
4th Floor, New York, NY 10022
Neighborhood Housing Services of New York City, Inc.
307 West 36th Street
New York, NY 10018
New York University FCU
New York, NY 10003
1 Rockefeller Plaza
9th Floor, New York, NY 10020
600 5th Avenue
New York, NY 10020
TruFund Financial Services, Inc. Loan Fund
39 West 37th Street, 7th Floor, New York, NY 10018
More on Help for Small Businesses
NEW YORK, NY – This afternoon, Congresswoman Carolyn B. Maloney (NY-12) joined Lower Manhattan small businesses and NYC Department of Small Business Services Commissioner Jonnel Doris to demand that Mitch McConnell and the U.S. Senate pass crucially needed COVID-19 relief.
New York, NY – Today, Congresswoman Maloney (NY-12) met with Williamsburg and Greenpoint small business owners to discuss the difficulties their businesses faced during the COVID-19 crisis. Organized in partnership with the North Brooklyn Chamber of Commerce, the Congresswoman met with Row House, Bar Method, Bagel Point, and Slick Willie Table & Bar. She responded to concerns and put forth her efforts to pass relief and aid to small businesses, and its employees, in the COVID-19 stimulus packages.