Fiscal Resilience for Today, Tomorrow & Next Year
The COVID-19 pandemic has resulted in severe economic stress for New York small businesses and nonprofits. In the midst of making painful choices, including layoffs, furloughs, and downsizing, we are forced to address cash flow issues and the long-term subsistence of our community.
At all levels of government and within the private sector, relief programs are being developed and existing programs restructured, adapted, and optimized for the current crisis. You have options for meeting your immediate cash flow needs and for reducing operational expenses going forward. You can also restructure balance sheets and debts to save for operations.
The right combination of options to match your needs.
If you’d like to learn more, please contact us.
Under the new Federal Cares Act, the Department of Treasury has set aside $350B in aid for loans or loan guarantees for small businesses and nonprofits. The funding will pay for certain operating expenses: payroll, employee benefits, lease expenses, mortgage payments, and utilities. Loans will be originated and processed by your relationship banks and other nonbank community lenders currently managing other SBA lending programs.
The Federal Reserve has 3 new lending facilities for small to mid-size companies having difficulty securing new funding. Under the CARES Act, the Main Street New Loan Facility (MSNLF), Main Street Priority Loan Facility (MSPLF) and the Main Street Expanded Loan Facility (MSELF) authorized $600B in loans, ranging from $500,000 to $25M, for businesses with less than 15,000 employees and/or annual revenue in 2019 of $5.0B or less.
The loan amount will be limited to 4 or 6 x your 2019 net income before interest, taxes, depreciation, and amortization (EBITDA).
We can guide you through the application process.
You may qualify for additional assistance through programs sponsored by local economic development agencies, community lenders, and private foundations. Relief can come from programs specifically serving the NYC metropolitan area. Most likely, a combination of financing solutions will be needed to shore up your company in the coming weeks and months.
For a more detailed explanation, please contact us directly by completing the form on this page.
New Yorkers running neighborhood businesses and nonprofits are wondering what our city will be like post-COVID-19 sheltering-in-place. Will we emerge ready to take on the challenges of rebuilding? And, how will the financial decisions we make now present opportunities for stabilization and growth next year and the year after?