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Nassau minority-owned firms to share in $12 million of PPP loans

The streets of downtown Hempstead are deserted as

The streets of downtown Hempstead are deserted as residents across the state adhere to the "Stay at Home" order. Credit: Kendall Rodriguez

Minority-owned small businesses in Nassau County will share in $12 million of Paycheck Protection Program loans authorized by the state, officials said.

Empire State Development, the state’s primary business-aid agency, has awarded $3 million each to four Community Development Financial Institutions for PPP loans to small businesses in “economically-distressed” neighborhoods in New York City and Nassau, Westchester and Rockland counties. The state money comes from a $50 million revolving loan fund.

The PPP reopened Monday after exhausting $349 billion in federal loan guarantees between April 3 and April 16. President Donald Trump signed into law last week a bill authorizing an additional $310 billion in guarantees, plus $60 billion of guarantees for loans from community development groups, credit unions and small banks.

The PPP consists of banks and other private lenders making loans of up to $10 million, generally to businesses with 500 or fewer employees. The interest rate is 1% with a two-year term and the entire amount is forgivable in some instances. Newsday has secured a PPP loan. 

Three of the community development groups, TruFund Financial Services Inc. and Accion East, both in Manhattan, and BOC Capital Corp. in Brooklyn, said they plan to lend to Nassau businesses.

“We have applications in the pipeline now from Nassau,” said Brian Gurski, vice president of strategy and innovation for TruFund. “Demand for this program is extremely high and we are responding to inquiries as quickly as possible.”

More information is available by sending an email to newyork@trufund.org.

Accion is accepting applications at ae.lendwithspark.com/widget/leadframe/?version=13, though spokeswoman Victoria Richardson said, "we expect volume to be high, so ask clients to please expect 24 to 48 business hours for a response from our PPP team." Applicants also can send an email to info@accioneast.com.

Brooklyn-based BOC is working with La Fuerza Community Development Corp. in East Norwich “in assisting minority-owned businesses to apply for and submit completed PPP loan requests to us," said BOC executive director Nancy Carin, adding applicants can send an email to COVID19@lafuerzacdc.org.

BOC and La Fuerza also are collaborating on an Entrepreneurs of Color COVID-19 Relief Fund that provides microloans of up to $40,000, with an interest rate of 3% and term of 36 months. The fund, which supports minority-owned small businesses in Nassau and Suffolk counties, initially has between $500,000 and $1 million to lend. More information is available by sending an email to EOC@lafuerzacdc.org.

Separately, the U.S. Chamber of Commerce in Washington said it received more than 15,000 applications for its $5,000 Save Small Business grants within minutes of launching the program on April 20. The website savesmallbusiness.com crashed, and the chamber stopped taking applications.

“While we will begin awarding grants this week based on existing donations, we are no longer able to accept applications,” Carolyn Cawley, president of the chamber’s charitable foundation, wrote on April 21. “Those who did submit an application will be notified if it results in a grant.”

The chamber has not disclosed how much money was in the grant fund.

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