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NYC – Financial Assistance for Businesses Impacted by COVID-19

On March 8th, Mayor De Blasio announced New York City will provide two forms of relief for small businesses across the City seeing a reduction in revenue due to COVID-19. Below are summaries and eligibility requirements for the two programs.

NYC Small Business Continuity Loan Fund

Businesses meeting the below criteria may receive zero-interest loans up to $75,000.

Eligibility:

  1. Business must be located within the New York City five boroughs;

  2. Demonstrate that the COVID-19 outbreak caused at least a 25% decrease in revenue;

  3. Must have fewer than 100 employees;

  4. No outstanding tax liens or legal judgments;

  5. Demonstrate ability to repay the loan.

As part of the applications, you will be required to demonstrate a revenue decrease by providing documentation such as: point-of-sales reports, bank statements, quarterly sales tax filings, 2019 tax returns, or CPA-certified profit & loss statements.

NYC Employee Retention Grant Program

The City is also offering small businesses with fewer than 5 employees a grant to cover 40% of payroll costs for two months to help retain employees. Non-profits may also be eligible for this grant.

Eligible businesses may receive a grant for up to $27,000.

Eligibility for the NYC Employee Retention Grant Program:

  1. Be located within the New York City five boroughs;

  2. Demonstrate that the COVID-19 outbreak caused at least a 25% decrease in revenue;

  3. Employ 1-4 employees in total across all locations;

  4. Has been in operation for at least 6 months;

  5. No outstanding tax liens or legal judgments.

Supporting documentation:

  • Financial documents for at least two months in 2020 demonstrating revenue decrease due to COVID-19.

  • Financial documents showing your revenue for the same two months in 2019 (unless you were not in business at that time).

  • Financial documents showing your revenue for the full 2019 calendar year.

Your most recent two months of payroll records (to determine your grant amount).

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About this Author

Rachel Lilienthal Stark Banking & Financial Services Attorney Stark & Stark Lawrenceville, NJ
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Rachel Lilienthal Stark is a Shareholder and member of the Banking & Financial Services, Business & Corporate, Intellectual Property and Non-Profit Organization Groups. Ms. Stark concentrates her practice in the representation of start-up and emerging companies and non-profit organizations on a variety of issues including corporate formation, financing, franchising, licensing, acquisitions, executive compensation, equity compensation plans, employment agreements, real estate and intellectual property law. Ms. Stark also represents lenders in commercial loan transactions.

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Dolores Kelley, Stark and Stark Law, Real Estate Lawyer, Zoning and Land Use Attorney, FDA Litigator
Shareholder

Dolores R. Kelley is a Shareholder and member of Stark & Stark’s Business & Corporate, Real Estate, Zoning & Land Use and Beer & Spirits Groups, where she concentrates her practice in the representation of start-up and emerging companies, breweries, distilleries, and non-profit organizations on a variety of issues including corporate formation, financing, licensing, acquisitions employment agreements and intellectual property law. Dolores also handles a wide range of matters for the real estate industry, including commercial transactions, leasing, condominium and homeowner association formation and representation of developers and landowners in land use applications.

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