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City Spotlight

Posted on: April 19, 2020

COVID-19 Small Business Resources

Small Business

COVID-19 Small Business Resources 

The Coronavirus is still present in New York. Everyone is required to wear a face covering & maintain a 6 ft. distance from others in public.

Paycheck Protection Program:

NEW: The Paycheck Protection Program (PPP) will re-open on January 11th for new borrowers and certain existing PPP borrowers. Only community financial institutions will be able to make First Draw PPP Loans on Monday, January 11, and Second Draw PPP Loans on Wednesday, January 13, but the PPP will open to all participating lenders shortly thereafter.

 

Changes to the program include:

·         PPP borrowers can set their PPP loan’s covered period to be any length between 8 and 24 weeks to best meet their business needs

·         PPP loans will cover additional expenses, including operations expenditures, property damage costs, supplier costs, and worker protection expenditures

·         The Program’s eligibility is expanded to include 501(c)(6)s, housing cooperatives, direct marketing organizations, among other types of organizations

·         The PPP provides greater flexibility for seasonal employees

·         Certain existing PPP borrowers can request to modify their First Draw PPP Loan amount

·         Certain existing PPP borrowers are now eligible to apply for a Second Draw PPP Loan.

 

Additionally, borrowers are usually eligible for a Second Draw PPP Loan if the borrower:

·         Previously received a First Draw PPP Loan and will or has used the full amount only for authorized uses;

·         Has no more than 300 employees; and

·         Can demonstrate at least a 25% reduction in gross receipts between comparable quarters in 2019 and 2020.

 

Additional information on the PPP is available here: https://www.sba.gov/funding-programs/loans/coronavirus-relief-options/paycheck-protection-program

 

New York Forward Loan Fund:

New York State Empire State Development (ESD) has announced that Paycheck Protection Program (PPP) recipients are now eligible to receive low-interest loans from the New York Forward Loan Fund (NYFLF). This conditional change will provide the Fund's network of lenders and financial institutions with greater flexibility and enable them to provide more small businesses with working capital to cover expenses associated with reopening. 


The New York Forward Loan Fund (NYFLF) is an economic recovery loan program aimed at supporting New York State small businesses, nonprofits and small landlords during the COVID-19 pandemic. The NYFLF targets the state’s small businesses with 20 or fewer full-time equivalent (FTE) employees (90% of all businesses), nonprofits and small landlords that have seen a loss of rental income. 

More information: https://esd.ny.gov/nyforwardloans-info

$18 Million Dollar Initiative to Train Workers and Support Entrepreneurs During and After the COVID-19 Pandemic 

New York State has been awarded an $18 million federal grant to fund educational opportunities that train New Yorkers for in-demand jobs, support entrepreneurs, and help small businesses recover from the coronavirus pandemic. New York was one of just eight states to receive the funding - made available through the CARES Act - and received the most of any state that was awarded a grant. The New York State Department of Labor will partner with the Office of Workforce Development, Empire State Development, New York's ten Regional Economic Development Councils, the State University of New York, and the City University of New York to allocate the federal grant funding on programs that support New York's continued economic recovery.  Educational programs will focus on developing the skills needed to succeed in emerging growth industries like tech, logistics, and advanced manufacturing, and supporting entrepreneurs.  Read press release here.


Women's Enterprise Development Center (WEDC) & Westchester County Offer MWBE COVID-19 Impact Accelerator and Grant Program


From October 20th, 2020 - October 26th, WEDC will accept grant applications of $7,500 for small business grants. Eligible applicants must be at least 51% owned by one or more persons of color or women as defined by Section 308 of the County Charter. Grant applications will be reviewed by a committee assembled by WEDC to determine eligibility and will be selected based on the following criteria: 

  • Was a financially viable entity prior to March 7, 2020 
  • Conducts business in the area served by the County of Westchester 
  • Has been negatively impacted by COVID-19 
  • Will increase growth potential through the accelerator program 
  • Available to attend the Accelerator program dates listed below


Program Dates:

  • Thursday, Nov 5
  • Thursday, Nov 12
  • Thursday, Nov 19
  • Thursday, Dec 3
  • Thursday, Dec 10
  • Thursday, Dec 17

*All program dates will be via zoom from 6 - 8 pm.

Westchester-Putnam Workforce Development Board Launches “Experience Works” Program to Help Businesses Hire or Rehire Staff

The WPWDB has received CARES Act funding to assist employers in hiring new staff or bringing back laid off staff through its “EXPERIENCE WORKS” Program. This program provides paid employment to each participant from the agreement activation date until December 30, 2020. The program is designed to provide timely support to small business owners and job seekers effected by COVID-19. Small businesses—the largest employers in Westchester—are particularly in need in this time and the program will allow them to hire or rehire staff while giving them temporary relief from payroll obligations. Job Seekers experiencing uncertain employment, the possible need to change careers midstream, and the challenges of working effectively remotely will directly benefit from this program. The WPWDB will pay the employee for 100% of their wages at the employer’s wage rate commensurate for their job description and title. The Programs runs to December 30, 2020 and all funds must be utilized by Dec. 30.

How it works: Participants will be paid at the employer’s wage rate up until December 30, 2020 on a bi-weekly basis, after which time the WPWDB will work with the employer for continued employment/training services. The participant will be a 1099 contractor of the WPWDB and will receive payment directly. No withholding taxes will be deducted; the participant is responsible for Federal and NYS taxes on the income as well as FICA and Medicare. They will receive a 1099-MISC for 2020 tax returns. There are no eligibility requirements. Any employer may apply.

Employer Responsibility:

  • Complete the “Experience Works” Program agreement form providing candidate names and positions
  • Add the participant to the employer’s worker’s compensation policy and provide a copy of the coverage;
  • Provide daily supervision of participant and ensure work tasks and duties are commensurate with the job description;
  • Provide the WPWDB with weekly attendance records.

Participant Responsibility:

  • Complete “Experience Works” form.
  • Complete and supply an Electronic Fund Transfer (EFT) and W-9 form to the WPWDB.
  • Be responsible for Federal and NYS taxes as well as FICA and Medicare.

Federal Reserve Main Street Lending Program:

The Main Street Lending Program offers business loans to help eligible small and medium-sized companies through the COVID-19 pandemic.

  •  Designed to help credit flow to small and medium-sized businesses that were in sound financial condition before the onset of the COVID-19 crisis, but now need loans to help maintain their operations until they have recovered from, or adapted to, the impacts of the pandemic.
  • The program offers 5-year loans, with floating rates, and principal and interest payments deferred as indicated in the chart below to assist businesses facing temporary cash flow interruptions.
  • The loans range in size from $250,000 to $300 million – a wide range that may support a broad set of employers.
  • More information is available at www.bostonfed.org/mslp.
  • As of September 21, 2020, the Main Street Lending program permits the submission of multi-borrower loans (loans made to multiple co-borrowers)

Small Business Administration (SBA) Resources:

In addition to traditional SBA funding programs, the CARES Act established several new temporary programs to address the impact of the COVID-19 pandemic on small businesses.

SBA Express Bridge Loans

Enables small businesses who currently have a business relationship with an SBA lender to access up to $25,000 quickly.

Learn more

SBA Debt Relief

The SBA is providing a financial reprieve to small businesses during the COVID-19 pandemic by paying 6 months of principal, interest, and any associated fees that borrowers owe for all current 7(a), 504, and Micro-loans.

Learn more

Need Help Filling Out an SBA Loan Application?
Westchester County is working with Volunteer New York! to connect small business owners with trained volunteers who can provide technical assistance in filling out SBA loan applications. For more information click this link:  https://www.volunteernewyork.org/vvc 

COVID-19 Assistance Program for WP Business Improvement District (BID) Members:

The White Plains BID COVID-19 Assistance Program (BIDCAP) is a multifaceted initiative that supplements existing Federal, State and City efforts to support local business owners and their employees. Under the program the WPBID will:

 

•  Underwrite the balance of half price gift cards  at participating small businesses downtown

•  Provide up to 100 hours of free parking validation codes through the ParkWhitePlains App to participating BID businesses

•  Market downtown White Plains businesses and the above efforts

•  Distribute face masks to BID businesses

•  Partner with Caring for COVID to support downtown restaurants and feed first responders; the WPBID will make matching contributions


For more information, go to: wpbid.com/bidcap

Additional Resources:

  • Community Capital New York is a resource for small business lending option and resources Community Capital NY.
  • One Fair Wage is providing cash assistance to tipped and service workers through a new support fund.
  • GrantWatch is a search engine connecting non-profits and small businesses to grant opportunities.  

Additional Government Resources:

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