By: Jason Hoffman
Small residential landlords now may be eligible for new COVID-19 financial relief with the New York Forward Loan Fund (NYFLF). The program aims to support some of the hardest-hit small businesses throughout the state as they continue to reopen from COVID-19 required closures, including small businesses (50 or fewer full-time equivalent employees), nonprofits and small residential landlords. As this is one of the few programs we’ve seen targeted to landlords, the Janover team has summarized the terms for those businesses only:
- Loan amounts are the lesser of $100,000 or projected six-month reduction in net operating income based on actual reductions in net operating income for the months of April or May 2020
- Loans are five years (60 months)
- Fixed annual interest rate of 3% (interest only payments for the first 12 months)
- No pre-payment penalty
- No application fees
- No collateral required
There currently is $30 million reserved for small landlords. Unlike many other grant programs we’ve seen, this is not a first-come, first-served basis but situational based on need and the application.
Contact us today by clicking here to see if you qualify so we can help you get your share of the New York Forward Loan Fund.
What Qualifies as a Small Landlord?
- Own no more than 200 individual units, and no single property with more than 50 units;
- Properties must either be located in a low or moderate income (LMI) census tract or meet a rent test where property rents are affordable to tenants of low and moderate incomes;
- Properties must have positive cash flow for a 12-month period before applying for a NY Forward loan;
- Properties must have an active forbearance agreement for their mortgage or proof they have not missed a monthly debt service payment in the past 12 months, and/or no active mortgage;
- Properties must be current on their property taxes through March 2020;
- Property owners must attest they will not evict COVID-impacted non-paying tenants;
- Properties must be in good physical condition and free of violations;
- 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 one year as of the date of loan application and are located in the State of New York
The pre-application is open at www.nyloanfund.com, where you can find more information on loan terms and requirements by industry. The online pre-application should be completed and submitted by the business owner with the largest ownership interest. Any owner with more than 20% ownership also will be required to attest to the information provided.
Janover’s team of advisors and consultants continue to monitor all new guidance from Congress, the IRS, the SBA, the Treasury Department and state governments to guide you through the process and take advantage of all of the options available to you during this time.
We know many real estate owners are families and family owned businesses who have been impacted by the COVID-19 pandemic, but even in these uncertain times, Janover can help you leverage real estate in strategic and practical ways that move you closer to your ultimate financial goals. Click here to learn more.