The IDA Emergency Loan Program allows the IDA to provide financial assistance of up to $10,000 for grants and up to $25,000 for no interest loans for those Small Businesses and Small Not-For-Profits hurt by Covid-19
Recognizing that local business are still suffering from the COVID-19 pandemic, Westchester County Executive George Latimer is calling on the County of Westchester Industrial Development Agency (IDA) to launch the IDA Emergency Loan Program in press conference today at 2pm which will be live streamed on Facebook. The Program, recently approved by New York State, would provide temporary authority to the IDA to issue grants and loans to businesses and small not-for-profit corporations negatively impacted by COVID-19. The Program allows the IDA to provide financial assistance through the State Disaster and Emergency Loan and Grant Program.
Latimer said: “The impacts of COVID-19 are still rippling through this County – even in Phase 3. The financial viability of our small businesses and small not-for-profits is a top priority of my administration. We have developed a Program that will provide much-needed financial assistance for those businesses who are still struggling in the wake of the COVID-19 pandemic. This Program is the basis for economic development and economic recovery.”
Under the program, the IDA would provide grants to small businesses and small not-for-profit corporations up to $10,000. The proceeds must be used for acquiring personal protective equipment, or installing equipment necessary to prevent the spread of COVID-19. The IDA would also make no interest loans, through the administration of the State Disaster Emergency Loan Program, available to small businesses and small not-for-profit corporations in an amount up to $25,000. The full loan amount being considered is $500,000.
County of Westchester IDA Chair Joan McDonald said: “This new program is another example of the IDA’s important role in fostering economic development in Westchester County. It is crucial that our small business and not-for-profit sectors receive help during this unprecedented economic downturn.”
To qualify for either a grant or loan, an eligible entity must establish that it was a financially viable entity prior to March 7, 2020, the date on which Governor Andrew Cuomo signed Executive Order 202 declaring a disaster emergency. Eligible entities must also conduct business in the area served by the IDA, been negatively impacted by COVID-19, and have less than 51 employees.
The IDA will consider the following factors in determining whether to award a grant or loan:
- Creditworthiness prior to March 7, 2020
- Negative impact the shutdown has had on its operations and finances
- Planned use of funds
- Community ties in Westchester County
- Assurance that efforts will be made to retain jobs during the time at which Executive Order 202 of 2020 remains in effect
- Other sources of funding available
The IDA is administering the program with a partner lending organization. Further details on the no fee application process will be forthcoming.