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Freed Maxick Service Delivery Update

We have implemented a phased approach for returning to our offices that allows us to modify our approach to service delivery as situations change without any service disruptions. In the meantime and in the interest of public health and the safety of our community, our teams will continue working remotely whenever possible to provide the same high-quality service you have come to expect. Utilizing state-of-the-art technology, we are committed to meeting all of your assurance, tax, and advisory needs to help you navigate a business environment filled with challenges and opportunities. To discuss a specific need that can’t be handled remotely, please contact your Freed Maxick representative directly.

New York Forward Loan Fund Provides Additional Support for Small Businesses and Nonprofits

By Jonathan Tretter, CPA on May, 27 2020
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Jonathan Tretter, CPA

Senior Manager

loan support

New York State in conjunction with Empire State Development and Homes and Community Renewal recently announced a new economic loan recovery program designed for targeted small businesses, nonprofits and small landlords that were impacted by the COVID-19 outbreak and need financial assistance for their reopening plans.

The intent of the program is to provide short term, low-interest, working capital loans to businesses that have been impacted by the COVID-19 outbreak and have not received funding through the Paycheck Protection Program (PPP) or the SBA Economic Disaster Loan (EIDL) Program. The timing of the program is to work in unison with reopening efforts when working capital is most critical for small businesses and nonprofits.

The entire New York State loan fund totals $100 million and will be allocated geographically to the 10 regions of the state. Eligible nonprofits can apply for a 60-month, no-fee loan at 2% fixed interest; while eligible small businesses and small landlords can apply for a 60-month, no-fee loan with a 3% fixed interest rate. The maximum loan amount is $100,000 with no collateral requirements and no prepayment penalty. The first 12 months of repayment are interest only while months 13-60 repayment include principal and interest. Loan funds can be used for working capital including payroll, operating and emergency maintenance, property taxes, utilities, rent and supplies.

Applications opened Tuesday May 26th at 12pm eastern time but the program will not begin processing applications until June 1, 2020. This is not a first-come, first serve program and priority will be given to industries and regions that have been reopened with specific emphasis placed on Minority and Women Owned Business Enterprises.

Eligibility requirements include:

  • Nonprofits organized as 501(c)(3) or faith-based organization;
  • 20 or fewer full-time employees;
  • Annual operating budget of less than $3 million per year for nonprofits and gross revenues less than $3 million per year for small businesses;
  • Landlords with no more than 200 units under ownership and no single property with greater than 50 units;
  • Landlord properties must have positive cash flow for a 12-month period prior to the loan request;
  • Have been in business/operation for at least 1 year as of the application date;
  • Have not received funding through the Paycheck Protection Program (PPP) or the SBA Economic Disaster Loan (EIDL) Program;
  • Have suffered a direct economic hardship as a result of COVID-19 related social distancing policies and stay-at-home order that have materially impacted their operations; and
  • Located in the State of New York.

Additional program information can be found at https://esd.ny.gov/nyforwardloans-info.

Assistance and Guidance from Freed Maxick

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The Freed Maxick COVID-19 Resource Center has a wealth of information and guidance on a wide range of topics related to tax relief and benefits, regulatory relief and benefits, and business continuity in the era of COVID-19. Click on the button to explore insights, observations and updates.

If you wish additional guidance, we are available to discuss your issues and concerns. Connect with us here or call Freed Maxick at 716.847.2651.

Please keep in mind that due to the quickly-changing nature of the COVID-19 pandemic, you should always discuss changes with your Freed Maxick advisor or legal counsel.

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