Barton will monitor, add to, and update this information as it becomes available.
Small Business Administration (SBA)
The SBA has agreed to offer targeted, low-interest disaster recovery loans to impacted businesses to help overcome the temporary loss of revenue they are experiencing. Here are some key points about the Economic Injury Disaster Loans (EIDL):
They’re available to qualifying small businesses with no other access to credit and can be used to pay fixed debts, payroll, accounts payable and other bills that can’t be paid because of the disaster’s impact.
- The interest rate is 3.75% for small businesses and 2.75% for non-profits.
- They offer long-term repayment options, up to a maximum of 30 years.
- The Loan is a direct loan through SBA, with no intermediaries.
NYC COVID-19 Response and Impact Fund
A group of foundations, philanthropies and other organizations – including Bloomberg Philanthropies, Carnegie Corporation of New York, Ford Foundation, The Andrew W. Mellon Foundation, among others — is making available $75 million in grants and no-interest loans to New York City Not-for-Profits to fund a variety of activities, including:
- Unrestricted, flexible funding to support new and emergency needs and meet community demands, particularly for service offerings outside normal operations required to respond to social distancing, isolation and quarantine.
- Technology to support remote work and services – laptops and remote calling capacity for staff, securing staffing and training to fulfill their mission.
- Temporary staff support to cover for shortages caused by employees who are ill, may have to quarantine, or stay home to care for family members or children during school closures.
- Equipment and supplies such as masks, hand sanitizer, gloves, and cleaning supplies.
- Additional cleaning services to augment in-house operations.
- Support to aid the loss of operational revenue from facility closings, cancelled programs, events, etc.
To be eligible, an organization must meet the following criteria:
- 501(c)(3) nonprofit organization
- Based in New York City
- Recipient of New York City and/or New York State government funding
- Annual operating budget of up to $20M (excluding government contracts)
- Track record of robust programming and services for New York residents
New York City Small Business Continuity Fund
Small businesses located in New York City that have been financially impacted by the pandemic are eligible to access the New York City Small Business Continuity Fund as a source of capital. Interest-free loans of up to $75,000 from the Fund are available for businesses that meet the following requirements:
- Located within one of the five boroughs of New York City
- Experienced at least a 25% decrease in revenues
- Employ less than 99 employees, and
- Do not have any outstanding tax liens or legal judgments.
Eligible small businesses interested in applying for a Fund loan should be prepared to provide substantiation of the business’s drop in revenue from point of sale reports, bank statements, quarterly sales tax filings or CPA certified profit and loss statements, the business’s most recent tax returns (tax year 2019 if available) and demonstration that the business will be able to repay the loan.
Business owners may apply online (Pre-Application for the NYC Small Business Continuity Loan Fund). Additional questions should be emailed to Covid19biz@sbs.nyc.gov.
If you are a quarterly or annual sales tax vendor, and you were unable to file or pay your March 20, 2020, sales tax return due to COVID-19, you may be eligible to apply to have penalty and interest waived.
Related Barton Client Alerts and Relevant Articles
What Businesses Receiving PPP Funds Need to Know About Changing Ownership
COVID-19 Impact On Business – But Will Insurance Cover the Loss? Issue 3: Legal Reform
Is Your Return to Work COVID-19 Liability Waiver Worthwhile?
COVID-19 Impact on Business – But Will Insurance Cover the Loss? Issue 2: Legislative Risk-Shifting
Partner Marc O. Dedman Quoted in Crain’s New York Business’ Article, “Albany Pandemic Bill Could Change Commercial Insurance Industry Forever”
COVID-19 Impact On Business—But Will Insurance Cover the Loss? Issue 1: Business Interruption Coverage – Lost Income
New Immediate Guidance on the CARES Act & the Paycheck Protection Program
Timely Additional Guidance on the New SBA Paycheck Protection Loan Program
Are You Eligible for a Small Business Loan Under the CARES Act?
Governor Cuomo Authorizes Notarizations Via Video Conference
BACK TO BARTON COVID-19 RESOURCE HOMEPAGE