During these past months, the LIFC has had the opportunity to discuss with its members and experts around Long Island, the pressing needs of food and beverage businesses that are navigating this challenging time. We are working to find and share information and opportunities that can help companies adapt to the current situation. We encourage businesses to be innovative in raising fundraising opportunities while taking advantage of existing sources to raise capital. Please see below loan and grant opportunities that could benefit women business owners, farm owners, and small business owners:

The Amber Grant

The Amber Grant is a small business fund for women-owned businesses that recently increased its awards to $4000 to one woman business owner every month. The Women’ sNet Fund provides this Grant. One winner will also be awarded an additional $25,000 in November of 2020. The Amber Grants began in 1998. It was launched by WomensNet to honor the memory of a young woman, Amber Wigdahl, who died at the age of 19 before she could fulfill her entrepreneurial dreams.
Eligible applicants for this Grant are women business owners, and there are no expectations of repaying the fund. Accompanying the application should be the “story” behind your business. There is a $15 application fee. Requests are reopened at the beginning of each month, and one winner is announced towards the end of the month. Apply here.

The B & I CARES Act Program

The B & I CARES Act program offers loan guarantees to rural businesses and agricultural producers that are not eligible for USDA Farm Service Agency loans. Loans must be used as working capital to prevent, prepare for, or respond to the effects of the coronavirus pandemic. The deadline to apply is September 15, 2021, or until funds made available for this purpose are expended.

Requested loans may be used only to support rural businesses, including agricultural producers, that were in operation on February 15, 2020. Individual borrowers must be citizens of the United States or reside in the U.S. after being legally admitted for permanent residence, and private-entity borrowers must demonstrate that loan funds will remain in the U.S (check eligible addresses for Business Programs). There is an initial guarantee fee equal to 2% of the guaranteed amount. There is also an annual renewal fee of 0.5% of the outstanding principal balance calculated on December 31 of each year. However, Reasonable and customary fees are negotiated between the borrower and lender.

Applicants are accepted from lenders through USDA local offices year-round. Interested borrowers should inquire about the program with their lender. Lenders interested in participating in this program should contact the USDA Rural Development Business Programs Director in the state where the project is located. For more information, click here, or you may contact your local office for assistance.

New York Forward Loan Fund (NYFLF)

The NYFLF is an economic recovery loan program aimed at supporting New York State small businesses, nonprofits, and small landlords as they reopen after the COVID-19 outbreak and NYS on PAUSE.NYFLF targets the state’s small businesses with 20 or fewer full-time equivalent (FTE) employees (90% of all companies), nonprofits, and small landlords that have seen a sharp reduction in rental income. The loans are not forgivable in part or whole. Take into consideration that this is not a first-come, first-served loan program. Applications will be reviewed on a rolling basis as regions and industries reopen.

Eligible Locations

This is the geographic proportionality goals for the New York Forward Loan Fund for small businesses:
● Capital Region 4%
● Central NY Region 4%
● Finger Lakes Region 4%
● Hudson Valley Region 12%
● Long Island Region 18%
● Mohawk Valley Region 4%
● NYC Region 30%
● North Country Region 4%
● Southern Tier Region 4%
● Western NY Region 8%

Application Criteria & Lenders that May Apply for this Program

Eligible participants are owners of small businesses, nonprofits, and small landlords that did not receive a loan from either the U.S. Small Business Administration (SBA) Paycheck Protection Program (PPP) or SBA Economic Injury Disaster Loans (EIDL) for COVID-19 in 2020. The annual interest rate on the loan for small businesses and landlords will be 3%, and nonprofits will have a fixed annual interest rate of 2%.
Repayments are as follows:
● For months 1 – 12: Interest-only payments, paid monthly
● For months 13 – 60: interest and principal payments, paid monthly
● Term: 5 years (60 months)

Eligible Business Groups

Small Business Eligibility consists of:
● Employ 20 or fewer full-time equivalent (FTE) employees for both small businesses
● Have gross revenues of less than $3 million per year
● Have not received a loan from either SBA Paycheck Protection Program (PPP) or SBA Economic Injury Disaster Loan (EIDL) for COVID-19 in 2020
● Have suffered a direct economic hardship as a result of COVID-19 related social distancing policies and stay-at-home order that have materially impacted their operations
● Been in business for at least 1 year as of the date of loan application
● Located in the State of New York

NonProfit eligibility consists of:

● Organized as 501(c)(3) or faith-based organization (cannot be for support of religious worship or activities)
● Employ 20 or fewer full-time equivalent (FTE) employees for nonprofit
● Provide direct services to New Yorkers, for example, daycare services, legal aid, food banks, soup kitchens, after school programs, senior services, educational programs, clothing banks
● Have an annual operating budget of less than $3 million per year
● Have not received a loan from either SBA Paycheck Protection Program (PPP) or SBA Economic Injury Disaster Loan (EIDL) for COVID-19 in 2020
● Have suffered a direct economic hardship as a result of COVID-19 related social distancing policies and stay-at-home order that have materially impacted their operations
● Been in operation for at least 1 year as of the date of loan application
● Located in the State of New York

To apply: Five Community Development Financial Institutions (CDFIs) will be processing pre-applications on June 1, 2020: Accion East, Community Preservation Corporation, National Development Council, Pursuit, and TruFund Financial Services. Please do not apply to the participating CDFI lender directly. To fill out a pre-application and match with a participating CDFI lender at nyloanfund.com. Apply here.

In addition to that, the New York’s statewide community network of Small Business Development Centers, Entrepreneurship Assistance Centers and Community Development Financial Institutions are available to provide counseling and training to help business understand and better adapt to the current situation:

● NY Small Business Development Centers (SBDC): The New York Small Business Development Center (NYSBDC) provides small business owners and entrepreneurs in New York with the highest quality, confidential business counseling, training, and business research at no cost.
● Entrepreneurship Assistance Centers (EAC) Contact List: Entrepreneurship Assistance Centers (EAC) provide instruction, training, technical assistance, and support services to new and aspiring entrepreneurs in local communities statewide.
● Community Development Financial Institution (CDFI) Contact List: CDFIs are local financial service providers with locations throughout New York State, and often are the sole provider of banking and other financial services in communities that are not served by traditional banks and financial institutions.
● COVID-19 Business Mentor NY Volunteer Task Force: New York State, business leaders, and law firms that have partnered to enlist industry volunteers to help businesses with guidance on loan applications.