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2020 Disaster Relief

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Help with 2020 Disaster Relief & Economic Development

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.

Liquidity now. Competitive later. How does this work in the time of COVID-19?

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.

A few facts to keep in mind as you navigate the days ahead.

  • Federal Reserve recently announced a new, large credit facility for small to mid-size businesses.
  • The Small Business Administration (SBA) has multiple options for relief, not just the “Paycheck Protection Program.”
  • City and State economic development agencies have incentives, low-cost financing programs, and more.
  • You may be able to restructure existing long-term debt obligations, e.g., real estate loans, bond financing, and other fixed obligations to free up cash flow.
  • New programs are coming online every day.

The right combination of options to match your needs.
If you’d like to learn more, please contact us.

What resources are available at the federal level?

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.

How do you fund operating costs without access to conventional bank loans?

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.

What other programs are available for relief assistance?

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.

Federal Programs

  • Main Street New Loan Facility (MSNLF)
    • 4-year, unsecured loan
    • 4 to 6 x 2019 EBITDA (maximum $25M)
    • Floating interest rate = Libor + 3.0% 
    • No debt service payments for 1 year
  • Paycheck Protection Loan
    • $10M or less
    • Payments deferred for 6 weeks
    • Forgiveness if maintain workforce
  • Express Bridge Loan
    • $25k or less
    • Repaid with proceeds from EIDL loan
    • Requires current relationship with SBA Express Lender
  • Debt Relief for SBA 7(a) Loans
    • Principal & interest paid for six months, if issued before 9-27-2020
    • Reprieve from existing debt
  • Economic Injury Disaster Loan
    • Up to $150,000 for working capital
    • $10K or less advance with forgiveness
    • Advanced funding released within 3 days
    • Apply directly on the SBA website

Local Economic Development Agencies

  • NYC Economic Development Corporation
    • Low Cost Bond refinancing
    • Real Estate tax reductions
    • Deferment of PILOT payments
    • Sales tax waivers for new construction projects
  • Empire State Development
    • Small Business Loan Fund
    • Grants to retain employees
    • Jobs tax credits
  • Payment Relief & New Credit Options
    • Loan forbearance
    • New lines of credit
    • Refinance & restructure existing debt
    • Financing for new capital projects

For a more detailed explanation, please contact us directly by completing the form on this page.

Where will we be in a year? What will it look like?

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?

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