Mayor Bill de Blasio announced on March 8 that the City will provide financial relief for small businesses across the City experiencing a reduction in revenue because of Covid-19.
There are 2 programs currently available:
- NYC Employee Retention Grant Program, and
- NYC Small Business Continuity Loan Fund
NYC Employee Retention Grant Program
This program is for businesses with fewer than 5 employees, and the City would provide a grant to cover 40% of payroll costs for two months to help retain employees. Businesses can access up to $27,000.
To be eligible, businesses must:
- Be located within the five boroughs of New York City
- Demonstrate that the Covid-19 outbreak caused at least a 25% decrease in revenue
- Employ 1-4 employees in total across all locations
- Have been in operation for at least 6 months
- Have no outstanding tax liens or legal judgments
To find out more and to apply, go to the NYC Business website here: https://www1.nyc.gov/nycbusiness/article/nyc-employee-retention-grant-program
Important! To avail of this grant program, apply now! Applications will not be accepted for this program after Friday, April 3, 2020 at 5p.m.
NYC Small Business Continuity Loan Fund
This program is for businesses with fewer than 100 employees who have experienced at least a 25% decrease in revenue, which makes such businesses eligible to apply for zero interest loans of up to $75,000 to help ensure business continuity.
To be eligible, businesses must:
- Be located within the five boroughs of New York City
- Demonstrate that the Covid-19 outbreak caused at least a 25% decrease in revenue
- Employ 99 employees or fewer in total across all locations
- Demonstrate ability to repay the loan
- Have no outstanding tax liens or legal judgments.
To find out more and to apply, go to the NYC Small Business Services website here: https://www1.nyc.gov/site/sbs/businesses/covid19-business-financial-assistance.page
Which option should a small business choose, if eligible – grant or loan? The answer to that question depends on several factors, especially how much money the business needs to stay operational, and its ability to repay the loan.
- The grant does not have to be repaid and helps ensure a business has money in the short-term to assist with keeping its employees on payroll.
- The loan on the other hand provides access to more funds, but requires repayment, albeit with no interest being incurred
You may also want to consider applying for both programs. Applications for the grant program will not be accepted after April 3 at 5p.m. so be sure to act fast.