NY A10208

Establishes a loan guarantee program administered by the Department of Financial Services to guarantee repayment of loans made by eligible banks and credit unions to affected small businesses and not-for-profit organizations during the coronavirus pandemic.

Defines eligible borrowers as small businesses with no more than 100 employees that experienced 25 percent or greater sales loss, and not-for-profit organizations with no more than 100 employees, both located in New York State.

Limits individual loans to $75,000 maximum with no repayment required during a 90-day grace period after the pandemic ends, no interest charged for 180 days after the grace period, and repayment in 3-6 equal installments thereafter.

Allows affected businesses and organizations to receive up to three additional loans during each 30-day period they remain affected, with a combined total loan cap of $75,000 per borrower.

Requires lenders to demonstrate good-faith collection efforts before claiming loan guarantees from the state and mandates the department cease approving new claims if guarantee payments exceed 10 percent of total loans issued.