As part of our ongoing efforts to support our clients and friends through these trying times we will be making you aware of various programs being implemented by both the public and private sectors to help ease the financial stress being put on many of your businesses as a result of the ongoing COVID-19 pandemic and the measures implemented to stop the spread. Below are some resources that your businesses may be able to utilize to address the impact of COVID-19.
HELP FOR NEW YORK NON-PROFITS NYC COVID-19 RESPONSE AND IMPACT FUND
A group of leading New York philanthropic organizations have established a $75 million fund to provide no-interest loans and grants to human service organizations and arts and cultural non-profits based in New York City to address the following needs:
- New and emergency requirements to meet community demands, particularly for service offerings outside normal operations necessary to respond to social distancing, isolation and quarantine;
- Technology to support remote work and services – laptops and remote calling capacity (e.g. Zoom), securing staffing and training to fulfill their mission;
- Temporary staff support to cover shortages caused by employees who are ill, have to quarantine or stay home to care for family members or children during school closures;
- Equipment and supplies such as masks, hand sanitizer, gloves and cleaning supplies;
- Additional cleaning services to augment in-house operations;
- Support to aid the loss of operational revenue from facility closings, cancelled programs, etc.;
To be eligible an organization must meet the following criteria:
- 501(c)(3) non-profit organization;
- Based in New York City;
- Recipient of New York City or New York State government funding;
- Annual operating budget of up to $20 million (excluding government contracts);
- Have a record of delivering effective programs and services for New York City residents.
Application forms are available commencing March 23, 2020.
NEW YORK CITY EMPLOYEE RETENTION GRANT PROGRAM
New York City has launched the Employee Retention Grant Program to assist small business impacted by the COVID-19 crisis to help retain employees. The Program is available to small businesses with 1-4 employees who can apply for a grant of up to $27,000 to cover 40% of payroll costs for two months to help retain employees. To be eligible, the applicant must demonstrate a decrease of at least 25% in revenue, must be located in New York City, have been in operation for at least 6 months, and have no tax liens or legal judgments.
NEW YORK CITY SMALL BUSINESS CONTINUITY FUND
New York City businesses with less than 100 employees can apply for 0% loans to cover revenue losses. Eligible businesses need to be located within New York City, evidence at least a 25% decrease in revenue caused by the COVID-19 outbreak, demonstrate an ability to repay the loan and have no outstanding tax liens or judgments. As part of the application process, the required revenue decrease must be evidenced by point-of-sales reports, bank statements, quarterly sales tax filings, 2019 tax returns and CPA certified profit and loss statements.
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If you would like further information about these or any other programs, or if you want to discuss strategic alternatives for your business, please contact the Garfunkel Wild attorney with whom you regularly work.
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