New York City has launched a new loan product called the NYC LMI Storefront Loan
. The purpose of the program is to help businesses in low-to-moderate (LMI) communities restart or continue operations after experiencing challenges from COVID 19. The loan terms are as follows:
- Maximum loan amount is $100K
- 0% interest rate
- 60 month term with no payment requirement for the first six months
- Closing fee of $300, if approved
- No prepayment penalty
The City’s Department of Small Business Services (SBS)
has partnered with Pursuit to service these loans and it is a first come first served product with a total of $35M in available funds. The program is intended to help storefront businesses but all location types and industries could be eligible to apply. This includes industrial and manufacturing businesses but the business must be located in one of the LMI zip codes identified here
to be eligible.
Additional eligibility criteria include:
- Business must operate in an eligible LMI zip code (as above)
- Business must employ between 2 and 99 employees across any and all locations
- Business must have been in operation on or before 1/1/2018
- Business must have been cashflow positive in 2019 and be able to demonstrate the ability to repay the loan
- Applicants must have no business or personal tax liens or legal judgements within the past three years
- Applicants must provide a personal guarantee for the loan
- All owners of 20% or more of the business must co-sign on the loan and must have an average personal credit score of 625 or higher
The loan will be underwritten in a process similar to a traditional loan and the business will be required to submit documents to substantiate their financial picture. This list, including templates, can be found here
. The documents include but are not limited to:
- Business Tax Returns
- Financial Statements
- Business Bank Statements
- Business Debt Schedule
- Personal Tax Returns (all owners over 20% and any guarantors)
- Personal Financial Statements (all owners over 20% and any guarantors)
You will need to start your application through NYC SBS’s portal ‘SBS Connect.’ For more information, details of the application process and to apply please click here. A link to the press release announcing this initiative can be found here.
For more information, details of the application process and to apply please click here.
If you have any questions please contact Natalie Vichnevsky.