Throggs Neck BIDMany local businesses and Throggs Neck BID members use the local JP Morgan/Chase Bank at 3528 East Tremont Ave. That branch is now providing ONLY drive through services. A sign on the door states that for non-drive through services, you must call 718-409-6208 for “appointments,” which will only be available at other branches.
Let your friends and neighbors know about your Throggs Neck BID area business or service. Email us at throggsneckbid@gmail.com and we will post your information on our website and Facebook page.
The recently passed $2.2 trillion CARES Act includes a Small Business Administration Disaster Loan Program. Small Businesses impacted by the coronavirus can apply for low-interest disaster loans, a portion of which can potentially be forgiven. However, the application process can be confusing. But a member of our BID, John Cerini and his Bronx Tax Man firm can guide you through the process. Call 718-tax-1040 ask for John or Oscar. There is a fee for the service.
IS YOUR BUSINESS OPEN DURING THE COVID CRISIS? Let us know and we’ll post the information here! email us at throggsneckbid@gmail.com
You can still eat great during the Covid Crisis! The Crosstown Diner, (2880 Bruckner Blvd) with its great selections and delicious food, is open for both takeout and delivery. Call 718-597-3450, or order online at www.crosstowndiner.com.
The Bronx Overall development Corporation (BOEDC) and the Office of the Bronx Borough President have established the Bronx Business Continuity Loan (BBCL) with the goal of providing recovery financing to Bronx businesses. The BBCL was created to help sustain viable businesses during the Covid crisis.
The use of these funds will provide local emergency business financing and bridge loan funding until government contingency financing is in place.
Eligible companies include for-profit entities , including service, retail and manufacturing companies operating in The Bronx and nonprofit organizations located in The Bronx. (Schools and residential buildings are excluded)
Eligible uses include payroll expenses, commercial mortgage and rent, equipment lease payments, insurance premium expenses, miscellaneous business discontinuous expenses.
Loans are available for a minimum amount of $25,000 and a maximum of $100,000. The loan term is up to two years (24 months) at a 0% interest rate. First payment is due 90 days after funding.
There is a $25 application fee. A sample application is provided.
CONTACT RAFAEL ROGER AT 347-524-4739, EMAIL rroger@boedc.com, or Pedro Barry, 347-297-0071, EMAIL pbarry@boedc.com
Bronx Overall Economic Development Corporation Bronx Business Continuity Loan Application (Covid19-bbcl)
Date:_________
Company Information
Company Name___________________________________________________________________________________________
Address______________________________________________City_________________State________Zip________________
Principal in charge____________________________________ Cell Phone ( ) Email:___________________
Secondary contact person______________________ ________ Cell Phone ( ) Email:___________________
(In-house controller or bookkeeper)
Type of Business________________________________________________________Date established____________________
Business Tel: _____________________________________ Email:
_____________________________________
Type of entity (check one)
Other
Company Ownership
Proprietorship
Proprietorship
Partnership
Partnership
Partnership
Corporation
Corporation
Corporation
Corporation
LLC
LLC
LLC
LLC
LLC
Name________________________________________________ Title_________________________ % Ownership________
Name________________________________________________ Title_________________________ % Ownership________
Name________________________________________________ Title_________________________ % Ownership________
Do any of the individuals listed in the above management section
or any of their relatives have any current, former or anticipated relationship
(financial or personal) with any current or former employee or Board Member of
The Bronx Overall Economic Development Corporation (BOEDC)?
No
Yes
If yes, provide details: ___________________________________________________________________________________
1
Affiliate Business Partners (If Applicable)
Name________________________________________________ Owner________________________ %Ownership________
Name________________________________________________ Owner________________________ % Ownership________
Existing Business Locations
Address______________________________________________ Square Feet ________________ Lease Payment__________
Address______________________________________________ Square Feet ________________ Lease Payment__________
References:
Accountant ___________________________ Firm Name______________________________ Phone___________________
Attorney______________________________ Firm Name______________________________ Phone___________________
Nature of Your Business:
Nature of your business __________________________________________________________________________________________________________ __________________________________________________________________________________________________________ __________________________________________________________________________________________________________
Type of products or services (include any catalogs or brochures) ___________________________________________________
2
Business Financials
Is your business generating revenue?
No
How much per year? $________________________
How much do you need to borrow? $________________________
What will you use the Loan for?
__________________________________________________________________________________________________________
__________________________________________________________________________________________________________
__________________________________________________________________________________________________________
Principle Information
Name: _______________________________________________________________
Address: _____________________________________________________________
City: ___________________ State:________________________ Zip:___________________
Social Security #:___________________________ Phone: _______________________ Email:__________________ Permanent resident?
No
U.S. Citizen?
Yes
Yes
Yes
No
3
No Have you or your business ever filed for bankruptcy?
If yes, when? _____________________
Have you and your business filed taxes for the most recent year?
No
Are you or your business ever been in a collections/foreclosure?
No
Have you or your business ever been the subject of a litigation?
No
Do you or your business have any outstanding business or personal loans?
No
Number of credit cards or lines of credit ______________________ Estimated combined balance ___________________
If you answered yes to any of the above please provide an explanation for each on a separate sheet.
Breakdown of Loan Proceed Expenditures
Expense Type Amount $
Total
Credit History
Yes
Yes
Yes
Yes
Yes
4
Checklist
Business Information
Business Certificate (Sole Proprietorship)
Personal Information (for each owner of 20% or greater):
Personal financial statement (form attached)
For information and support in using this loan program please contact Loan Specialists:
Pedro Barry mailto:pbarry@boedc.org Mobile: (347) 297-0071
Or Rafael Roger mailto:rroger@boedc.org Mobile: (347) 524-4739
Send completed application and all supporting documents to:
Michael Nixon Credit Analyst mailto:mnixon@boedc.org Mobile (347) 297-0051
Brief history & description of business
Business Financial Statement for last 2 years
Interim financial statement dated within last 60 days
Business debt schedule (form attached)
Federal tax returns for last 2 years
Business License & Fictitious Business Name Statement (if proprietorship)
Personal tax returns for last 2 years
Articles of Incorporation & By-Laws (if Corporation)
• President:
• Secretary:
Articles of Organization & Operating Agreement (if LLC)
Partnership Agreement (if partnership)
Franchise Agreement
5
Authorization to Release Information I/We hereby authorize the release to Bronx Overall Economic Development Corporation of any information they may require at any time for any purpose related to my/our credit transaction with them. I/We further authorize the Bronx Overall Economic Development Corporation to release such information to any entity they deem necessary for any purpose related to my/our credit transaction with them.
I/We hereby certify that the enclosed information, including any attachments or exhibits provided here within or at a later date, is valid and correct to the best of our knowledge.
Name of applicant(s)______________________________________________________________
Signature of applicant(s)________________________________________________________Date__________
Name of applicant(s)______________________________________________________________________
Signature of applicant(s)_______________________________________________________Date_____________
Robert Swetnick of the Dunnington, Bartholow & Miller LLP law firm provides this excellent summary of the Cares act:
How the CARES Act and Other Recent New York State and New York City Legislation Address Business Interruption and Employment
Within the past few days the United States government, the State of New York and the City of New York adopted legislation intended to provide economic relief to businesses and individuals impacted by the Covid-19 emergency. The following is a review of various loans, loan forgiveness provisions, and other benefits created by these recent acts. *
U.S. Federal Laws
On March 27, 2020, an approximately $2 trillion coronavirus response bill, the Coronavirus Aid Relief, and Economic Security (“CARES”) Act (H.R. 748), was signed into law.
The CARES Act:
1. Provides Forgivable Loans to Small Businesses
Under the CARES Act’s Paycheck Protection Program, the Small Business Administration (the “SBA”) will back loans of up to $10 million from banks to businesses with not more than 500 employees for those businesses to pay employee salaries, paid sick or medical leave, health insurance premiums, and basic immediate operating expenses like mortgage, rent, and utility payments (“Covered Expenses”).
Borrower Eligibility
There are very few borrower requirements to obtain a loan under the CARES Act. Those requirements include a good-faith certification that the borrower (a) needs the loan to continue operations during the Covid-19 pandemic, (b) will use the funds to retain workers and maintain payroll, or pay the other immediate operating costs, (c) does not have any other pending application under this program for the same purpose, and (d) has not received duplicative amounts under this program from February 15, 2020 until December 31, 2020.
Eligible businesses include private and public non-profits, sole proprietorships, individuals who are self-employed, and businesses with not more than 500 employees (including full-time and part-time employees) per location. For businesses in the hospitality and dining industries, there is a special eligibility rule: if the business has more than one physical location, it employs not more than 500 employees per physical location, and it is assigned to the “Accommodation and Food services” sector (Sector 72) of the North American Industry Classification System, that business is eligible for a loan.
Notably, the CARES Act includes a “Sense of the Senate” that the SBA should issue guidance to lenders to ensure that the processing and disbursements of loans prioritizes small businesses in underserved and rural markets, small businesses owned by individuals who are socially or economically disadvantaged, women owned businesses, and businesses that have been in operation for less than two years.
The Loan Amount
The maximum loan amount (the “Loan Amount”) is the lesser of (a) 2.5 multiplied by the average total monthly payroll costs incurred from the previous one-year period (plus the outstanding amount of any loan that the business received under the SBA’s Disaster Loan Program between January 31, 2020 and the date on which that loan may have been refinanced as part of the Paycheck Protection Program (“Prior SBA Loan Amount”)), or (b) for businesses that were not in existence from February 15, 2019 to June 30, 2019, 2.5 multiplied by the average total monthly payroll costs incurred from January 1, 2020 to February 29, 2020 (plus any Prior SBA Loan Amount), or (c) $10 million. Payroll costs include compensation to independent contractors (including compensation based on commission) up to $100,000 in one year.
Loan Forgiveness
A borrower is entitled to loan forgiveness in an amount equal to Covered Expenses paid during the 8-week period following loan origination (the “Loan Forgiveness Covered Period”). Forgiveness is subject to reduction based on a reduction of the business’s employees, and wages and salaries as explained below (the “Forgiveness Amount”).
To calculate the Forgiveness Amount, the Act instructs to multiply the total of the Covered Expenses incurred during the Loan Forgiveness Covered Period by the result of dividing the average number of full-time equivalent employees (“FTEEs”) that the business employed per month during the 8-week Loan Forgiveness Covered Period, by (at the election of the borrower) either (a) the average number of FTEEs that the business employed per month from February 15, 2019 to June 30, 2019, or (b) the average number of FTEEs that the businesses employed per month from January 1, 2020 to February 29, 2020. The Act also provides that employees whom the business laid off between February 15, 2020 and April 26, 2020, but
rehired by June 30, 2020 will, in effect, be treated as employed individuals during the 8-week Loan Forgiveness Covered Period so as to not reduce the Forgiveness Amount.
The Forgiveness Amount will be reduced by the amount of employee salary reduction in excess of 25% of that employee’s total salary during the most recent full quarter during which the employee was employed before the Loan Forgiveness Covered Period. Thus, if the business did not reduce employee salary or wages during the Loan Forgiveness Covered Period by more than 25%, the Forgiveness Amount will not be reduced in this manner.
It is important for businesses to document the use of its funds received under the program pursuant to the documentation provisions in the CARES Act because businesses that to do not properly document their use may be ineligible for loan forgiveness.
Application Process
Businesses can apply for the loans through private sector lenders authorized by the SBA who can use their own paperwork to process the loans. It is estimated that it will take about two weeks for the SBA to approve each loan, and to guarantee it against default. Lenders will not distribute the loan money to businesses until the SBA has assured it that each loan is fully backed, so it may take at least two weeks from applying for the loan for businesses to start receiving the loan money.
SS
SS Owners
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Business owners are not required to provide personal guarantees or use their assets as collateral for the loan. There are no fees associated with obtaining the loan, and interest rates are capped at 4%.
2. Provides Emergency EIDL Grants
The CARES Act provides, in certain circumstances, emergency Economic Injury Disaster Loan (EIDL) grants of up to $10,000 from the SBA to small businesses for those businesses to use the funds for, among other things, providing paid sick leave for employees, maintaining payroll, meeting increased costs due to an interrupted supply chain, and making rent or mortgage payments. It is currently uncertain as to what impact, if any, obtaining an emergency grant under this provision may have on applications made under the Paycheck Protection Program.
3. Expands Unemployment Benefits
Under the CARES Act’s temporary Pandemic Unemployment Assistance Program, workers not usually eligible for state and federal unemployment benefits—such as independent contractors, and people who are self-employed or who have a limited work history—may receive unemployment benefits if they are unable to work because of the Covid-19 pandemic.
Anyone who self-certifies that they are able and available to work but is unemployed or partially unemployed because of the Covid-19 pandemic is considered a “covered individual.” If workers have the ability to work remotely with pay, they are not eligible for these benefits.
Under the CARES Act, unemployment benefits are available for the weeks of unemployment, partial unemployment, or inability to work caused by Covid-19 beginning on or after January 27, 2020 (the date on which the Secretary of Health declared Covid-19 a public health emergency) and ending on or before December 31, 2020, and shall continue to be available as long as the individual’s unemployment, partial unemployment, or inability to work continues, for up to 39 weeks. Individuals will receive the amount that would be calculated under state law plus $600 each week for up to four months, as opposed to the usual three months. Additionally, the standard one-week waiting period is waived, so laid off employees immediately qualify for benefits.
4. Provides Refundable Payroll Tax Credit to Employers
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For businesses whose operations were fully or partially suspended by a government entity due to the Covid-19 pandemic or had a decrease in gross receipts of 50% or more compared to the same quarter last year, the CARES Act provides for a refundable payroll tax credit equal to 50% of the first $10,000 in wages per employee. This payroll tax credit can be claimed for employees who are retained but who do not work during the Covid-19 pandemic. Businesses with 100 or fewer full-time employees can claim the payroll tax credit for all employees’ wages—whether the employer is open for business or has been ordered to close. Businesses with more than 100 full-time employees can claim the credit for employees who are retained but who do not work due to the Covid-19 pandemic.
New York City and New York State Laws
Employers that employ at least two employees in New York State seeking to avoid layoffs should also know about the Shared Work Program, which provides partial unemployment benefits to employees who are working reduced hours. To participate, employers must design a “Shared Work Plan” and apply to participate here at least one week before the proposed effective date. After an employer’s plan is approved, participating employees must file unemployment insurance Shared Work claims. Eligible employees include those who qualify to receive unemployment insurance benefits in New York state and who normally work no more than 40 hours per week. Covered employees may receive up to 26 weeks of regular Shared Work benefits in one year. Currently, it is unclear how employers would take advantage of the New York State Shared Work Program and the Federal Paycheck Protection Program simultaneously. One potential scenario is that the reduction in salary and wages under the Shared Work Program may reduce the amount of the loan forgiveness under the Paycheck Protection Program.
Under New York City’s Employee Retention Grant Program, small business in New York City (including nonprofits) that have been in operation for at least six months, with one to four employees that can demonstrate at least a 25% decrease in revenue as a result of the Covid-19 pandemic may be eligible to receive a grant covering up to 40% of their payroll for two months, for a maximum of up to $27,000. This program was implemented to help New York City businesses retain employees. More information can be found here.
Under New York City’s Small Business Continuity Loan Program, businesses in New York City with fewer than 100 employees that can demonstrate at least a 25% decrease in revenue as a result of the Covid-19 pandemic, and that it has the ability to repay the loan, may be eligible for an interest-free loan up of up to $75,000 to help retain employees and continue business operations. More information can be found here.
*Evolving Regulation and Implementation Procedures
The foregoing is intended as a summary of the various measures enacted within the past few days. The legislation examined above was understandably passed under exigent circumstances. Most, if not all, of the above will be subject to rules-making and interpretation. Therefore, implementation structures, procedures and subsequent regulations may vary from the analysis presented above.
For questions about the foregoing and further developments, please contact us.
* Required Disclaimer: This alert is provided for informational purposes and does not constitute, and should not be considered legal advice. Specific facts and circumstances will differ. Neither the transmission nor the receipt of this information shall create an attorney-client relationship between the transmitter and the recipient. You should not take, or refrain from taking, any action based upon information contained in this alert without consulting legal counsel of your own choosing. Under applicable professional rules of conduct, this informational publication may be considered attorney advertising.
Join WE NYC for our first ever virtual event held in partnership with Dig Down Media and Women.nyc. This event will focus on economic relief programs for small business related to the impact of COVID-19. Experts from the New York City Department of Small Business Services and WE Connect Mentor Ramona Cedeno, Founder, CEO, and CPA of FiBrick Financial Services, will share information on emergency financial assistance. Please check this page for updates on how to access the virtual platform and learn more about COVID-19 assistance and guidance for businesses at:https://www1.nyc.gov/site/sbs/businesses/covid19-business-tips-faqs.page.
Thanks to our partners:
A leader in live streaming and media technology consulting, Dig Down Media has over 15 years experience in the industry. Founded by Ian Busching, a streaming media specialist, the company has worked with several international organizations, including NBC Sports, Coca-Cola, Dunkin’, NASCAR and the National Hockey League (NHL), to implement media tech solutions. To learn more, go to: https://digdownmedia.com/
Women.nyc is a New York City government initiative based out of the Economic Development Corporation that gives women real tools to succeed in their careers and businesses.
Ramona Cedeno is the Founder and CEO of FiBrick Financial Services, an accounting outsourcing and tax planning firm working primarily with tech startups to help them build sound accounting and finance processes that support operational and strategic goals. Ramona has over 15 years of experience as a Financial Controller for large and small companies, with a track record of successfully devising and deploying innovative strategies that enhance financial performance.If you have questions about this WE Connect Event or would like additional information about WE NYC, please e-mail wenyc@sbs.nyc.gov or visit we.nyc
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