STATEN ISLAND, N.Y. ÔÇö Small businesses and non-profits in New York State can now apply for loans up to $150,000 under a new state effort called the New York Forward Loan Fund 2 program. This program, recently announced by Governor Kathy Hochul, aims to provide greater financial support to qualifying businesses and expand access to loans.

The New York Forward Loan Fund 2 program has expanded the criteria for eligibility, allowing more businesses to qualify for the loans. Qualified recipients must have fewer than 100 employees and less than $5 million in gross annual revenue. They can now apply for loans up to $150,000 with affordable, fixed-rate interest rates.

With the launch of this new program, the state aims to address the financial needs of small businesses and non-profits, particularly those in low-income and historically underbanked communities, as well as rural areas. The New York Forward Loan Fund 2 program will provide flexible working capital to cover various expenses, such as payroll, marketing, and facility renovations. Additionally, businesses will receive free support services from experts throughout the duration of the loan.

To support the growth and strength of New York’s economy, Governor Kathy Hochul emphasized the importance of small businesses, stating, “New York’s small businesses are the lifeblood of our state’s economy and vital to growing and strengthening New York State.” She believes that the expanded eligibility of the New York Forward Loan Fund 2 will build on the success of the first fund, which provided crucial support to small businesses during the pandemic.

The New York Forward Loan Fund was initially created to address the lack of affordable credit options for small businesses during the COVID-19 pandemic. The state recognized the inequities in the distribution of funds and the unavailability of smaller loans at reasonable rates in the market. Therefore, they developed their own program, the New York Forward Loan Fund, to meet the unique needs of small businesses in the state.

The first fund successfully processed over 1,700 loans, providing $97 million in pandemic relief to small businesses. This lifeline was especially significant for women- and minority-owned companies, and more than half of the loan recipients had never previously applied for a business loan.

The New York Forward Loan Fund 2 program will be administered through Community Development Financial Institutions (CDFIs). It aims to disburse an initial $150 million, with plans to recycle and lend additional funds over the next eight years. The CDFIs will prioritize investing in underfunded businesses, specifically those owned by people of color, women, veterans, and the LGBTQ+ community.

To apply for a loan, businesses can pre-apply at NYLoanFund.com. The participating lenders for the New York Forward Loan Fund 2 program include Accion Opportunity Fund, Ascendus, NDC’s Community Impact Loan Fund, Pursuit, and TruFund Financial Services.

Furthermore, participating businesses and non-profits can also benefit from free advisory services provided by New York’s Entrepreneurship Assistance Centers (EACs) and Small Business Development Centers (SBDCs). Even if an applicant does not qualify for a loan or is unable to find a lender, they can still work with advisors to develop a business plan, improve profitability, and position themselves for future credit. The fund is managed by Calvert Impact and administered by the Community Reinvestment Fund in collaboration with private sector institutions such as the Citi Foundation and Wells Fargo.

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