State-aid programmes are changing rapidly as they reach capacity and as new sources of funding come online. This guide outlines existing programmes, but they might not be available immediately, even for businesses that meet the criteria.
Until the week of 6 April, the Small Business Services Continuity Loan Program was available to small business in New York City affected by COVID-19. The acceptance of new applications has been paused because of overwhelming demand. However, we want to make sure that business owners know how to take advantage of the programme, if and when it comes back online.
The programme offers interest-free loans to qualifying small businesses that can claim a drop in revenue of 25% or more because of COVID-19.
The city's Small Business Services can answer questions and help local businesses understand their options. Here's a summary of their loan programme.
Eligibility
Small businesses located within New York City that have experienced a decrease in revenue of at least 25% due to the COVID-19 outbreak can apply for an interest-free loan of up to US$75,000.
Other criteria
Two years or more in business
Fewer than 100 employees in total, across all locations
No outstanding tax liens or legal judgments
Demonstrable ability to repay the loan
Calculation of revenue loss
To confirm the effect of COVID-19 on the business, the city will compare the average revenue in the two months following the impact of COVID-19 in 2020 to two other numbers:
The average revenue for the same two-month period in 2019
The average monthly revenue in 2019
If either calculation demonstrates that the business has lost 25% or more of its revenue, the owners or leaders can apply for a loan.
Application process
The application process for the NYC Small Business Continuity Loan Program is straightforward. Businesses gather financial documents to prove eligibility and sign an affidavit. The supporting documents can include point-of-sales reports or screenshots, sales reports (demonstrating fees collected or earned income), bank statements, transaction-level data from banks, quarterly sales tax filings, tax returns or profit and loss statements.
Here are the steps to follow for approval from the city:
Sign the Participation affidavit to say that you're eligible for the programme.
Upload financial documents demonstrating your revenue loss, as well as your signed affidavit.
Financial documents showing your revenue for two months in 2020 (these statements should demonstrate a decrease in revenue due to COVID-19)
Financial documents showing your revenue for the same two months in 2019
Financial documents showing your revenue for the full 2019 calendar year
To increase the likelihood of being approved, we recommend that you provide as many documents showing these revenue numbers as possible. Once you have completed these steps, the city will send you a link to a longer application on the partner lender's site.
Additionally, many small businesses throughout New York State are eligible for the federal programmes under the CARES Act and SBA options that were already available.
Note: In early March, New York City launched a now-closed Employee Retention Grant Program to help small businesses cover their payroll. The city has since closed applications for the grant programme and has started redirecting businesses towards their loan programme and SBA support.