The New York Forward Loan Fund helps hundreds of small businesses survive the winter
“Sometimes God comes at just the right time,” she said.
Lindo’s lifeline came from that New York Forward Loan Fund, a $ 150 million pool of public and private capital to support small businesses. The fund is open to companies with 20 or fewer employees who received less than $ 50,000 from the Federal Paycheck Protection Program or $ 10,000 from the Federal Economic Injury Disaster Loan Program. Landlords who own fewer than 200 units are also eligible.
The interest rate is 2% for nonprofits and 3% for nonprofits. Loans are due in five years.
Ann Finnegan, a director of the National Development Council, a nonprofit that helps small businesses get funding, said the loan program was the most attractive package for small businesses at a time when federal aid has dried up and Washington has been unable to agree more Help.
“Until Congress pulls its act together, that’s it,” said Finnegan. “This program offers a year of runway to the people who need it most.”
The Forward Loan Program is a fraction of the size of the PPP that provided nearly $ 40 billion to small and medium-sized businesses in New York. But many entrepreneurs missed out on PPP support because they didn’t have close ties with banks or couldn’t keep their businesses going long enough. Lindo did not apply for PPP money as the proceeds had to be used to pay employees and their employees are freelance workers.
According to a supporter of the program, Calvert Impact Capital, the Forward Loan program has made approximately $ 20 million in loans averaging $ 50,000 each. 65 percent of borrowers are minority or women owned companies.
The program was presented in July. After a slow start, lending has tripled since late September, NDC officials said.
Michelle Bishop, executive director of Harlem Needle Arts, said her $ 54,000 loan will help her nonprofit support artists whose textile works are earmarked for public display. She said she will use a portion of the proceeds to produce videos so that her art can be experienced remotely.
Bishop said she applied for the loan because she realized the city was no longer equipped to support public art as it used to.
“I understand there may be bigger fish to fry,” she said.