Addendum-I-Questions&Answers-NYStateMinority&WomenRevolvingLoanTrustFund-RFA.pdf

KATHY HOCHUL

Governor

HOPE KNIGHT

President, CEO & Commissioner

FREQUENTLY ASKED QUESTIONS

Release Date: August 19, 2026

The following is a list of Frequently Asked Questions in relation to the Minority and Women Revolving Loan Trust Fund (MWRLTF).

Minority and Women Revolving Loan Trust Fund

# Question Response

What are examples of eligible expenses?

(e.g., news ads/social media blasts, flyers/publications, outreach meeting room rental/snacks/non-alcoholic drinks, travel expenses related to program outreach, travel related to meeting with a prospective loanee)

Grant proceeds disbursed by ESD are allocated strictly as capital for issuing loans to eligible borrowers and cannot be drawn upon directly to fund administrative salaries, fringe benefits, marketing, outreach events, travel, room rentals, or loan loss reserves.

Prohibited indirect costs include general administrative overhead, executive management allocations, or unallocated operational expenses not directly tied to loan deployment.

Administrative expenses for operating the loan fund (such as outreach, marketing, travel, and loan officer compensation) are defrayed solely through the interest payments retained by the Administering Corporation from disbursed loans.

It looks like debt refinance of any kind (even of higher cost debt) is not allowed with these funds (see under “Ineligible Projects”). Is that correct?

Correct. Refinancing any portion of existing loans or debts is strictly prohibited.

Would the Administering Corporation be required to set up a separate bank account for these funds?

Yes. Program proceeds must be deposited into a dedicated "Trust Fund Account" established exclusively for MWRLTF.

Does the Administering Corporation have to submit loan principal repayments back to ESD, or are repayments returned to the Minority and Women Revolving Loan Trust Fund to be retained for future loan disbursements? Once all initial funds are deployed, do collected repayments become the organization's money to be used at its own discretion, or do we only retain the interest portion for administrative fees?

Additionally, can loan parameters (such as increasing loan sizes beyond the $35,000 working capital and $50,000 equipment/real property caps) be changed once the initial funds are disbursed?

Principal repayments are retained by the Administering Corporation within the dedicated, revolving Trust Fund Account to issue new loans to future borrowers over time; they are not remitted back to ESD or converted into discretionary organizational funds. The Administering Corporation retains only the interest portion of repayments to cover its administrative costs. Repaid principal must remain dedicated exclusively to the Minority and Women Revolving Loan Trust Fund. Statutory loan size limits ($35,000 maximum for working capital and $50,000 maximum for acquisition of real property, machinery, and equipment) are set by program rules and cannot be changed or increased unilaterally after initial funds are deployed.

# Question Response

The MWRLTF RFA states that all loans would need to be approved by BOTH the dedicated 6-member "Trust Fund Loan Committee" AND the “majority of the directors of the Administering Corporation” (board of directors). The board of directors' requirement could be a burden for many CDFIs. Would ESD consider waiving the requirement that the loan decisions be made by the majority of the directors of the Administering Corporation, and retain only the "Trust Fund Loan Committee" loan approval requirement?

ESD has not waived this requirement in the RFA text. RFA Section II(E)(B) strictly requires a two-step process: every loan must be approved by the dedicated Trust Fund Loan Committee, and final approval must be decided by a majority vote of the directors of the Administering Corporation.

How much time do we have to use up the funds? Is there a date the initial funds have to be disbursed in full by?

Grantees have a maximum utilization period of up to three (3) years to draw down grant funds via formal Payment Requisitions. Funds are disbursed in two tranches: 70% upon execution of the Grant Disbursement Agreement, and the remaining 30% after documenting the disbursement or commitment of 80% of the initial 70% disbursement. Following the 3-year drawdown period, grantees may continue deploying remaining loan proceeds according to the ongoing operational terms set forth in their executed GDA.

What if there is a mixed-use loan request i.e. money for working capital and for equipment/machinery/real property?

Allowed, provided the financing respects individual loan limits ($35,000 maximum for working capital; $50,000 maximum for acquisition of real property, machinery, and equipment) and meets all eligibility standards.

Can lending areas be restricted to a single county, or does ESD require applications covering a larger geographic area? If an organization's bylaws permit, can loans be made to M/WBE businesses outside of Main County within its designated operational area?

Lending areas are defined by the applicant's proposed Service Delivery Region, which can be limited to a single county or cover a broader multi-county area based on the applicant's bylaws and capacity. Out-of-county lending is fully permitted as long as the location falls within the applicant's approved Service Delivery Region in New York State.

Does the business need to be MWBE certified? If no, what percentage of ownership must be minority or women-owned? Are the M/WBEs required to be state certified?

Formal NYS certification is not explicitly mandated, but the business must meet statutory M/WBE criteria (independently owned and operated, located in NYS, 100 or fewer employees, and at least 51% owned and controlled by minority group members or women).

Certification status must be tracked and reported.

Is there a size limit in terms of the business’ annual revenue?

Borrowers must employ 100 or fewer persons. There is no specific annual revenue cap.

Are there any ineligible types of businesses? (cannabis, passive income, etc.)

Yes, under the guidelines, passive real estate holding companies, cannabis enterprises, gambling/adult entertainment businesses, non-operating shell entities, and projects focused solely on debt refinancing or speculative investments are strictly ineligible. To qualify, applicants must be active, for-profit operating entities certified (or certifiable) as New York State Minority- or Women- Owned Business Enterprises (MWBEs). Please refer to the ineligible projects listed in the RFA.

Medical facilities are listed as ineligible:

What is defined as a medical facility? Are doctor’s offices ineligible or just large medical facilities?

Medical facilities, including doctor’s offices, clinics, and health centers, are listed as ineligible projects without explicit size exceptions.

Provide a more detailed explanation of what is a Retail Project (what types of businesses are ineligible, e.g., stores, restaurants, etc.).

Retail projects include customer-facing consumer sales businesses such as stores and restaurants. They are ineligible for funding unless the Administering Corporation explicitly finds that the project will result in an increase in net new permanent jobs.

Are there any collateral requirements? If UCC’s are filed, does lien position matter?

Can eligible projects be backed by real estate collateral? Is there a maximum or minimum project size?

Real estate collateral is allowed (real property loans up to $50,000).

Lien position and UCC filing details are determined during standard underwriting and credit analysis. Project size is capped by maximum loan limits ($35,000 working capital / $50,000 property & equipment).

Any closing process requirements? What interest rate can be charged (or is this flexible) and for what term length? What are the parameters for the loan interest rates to the loanee?

Terms are typically up to 5 years for working capital. For fixed asset loans, the term should not exceed the useful life of the property which it is financing. Interest rates and closing procedures are governed by the Administering Corporation's ESD-approved credit policy and underwriting procedures.

16 Is ACH auto debit required for repayments?

ACH auto-debit is not mandated, allowing the Administering Corporation to use its standard payment collection procedures.

Is there an interest cost to the program applicant? Or is it a complete grant?

It is a grant to the Administering Corporation. There is no interest cost or cost-match requirement. The Administering Corporation uses the grant to issue loans.

Is there a loan loss reserve built in? Can you offer any insight into how a Loan Loss reserve would work if awarded $500,000 and several loans defaulted? Is that acceptable or would the Awardee be responsible to pay back NY State for Loan Losses?

Grant proceeds cannot be used to fund a loan loss reserve unless explicitly approved. Loan defaults are managed as standard credit risk within the revolving fund, but high defaults must be tracked and reported in net loan loss metrics.

Are Veterans and/or Disabled Veterans included as minorities?

No, Service-Disabled Veteran-Owned Businesses (SDVOBs) are governed under separate law (Article 3 of NYS Veterans' Services Law). Minority status for MWRLTF specifically follows standard statutory demographic definitions for racial/ethnic minority groups and women.

Are supporting partners from State agencies (ESD, HCR, DOS) allowed to provide letters of support?

Standard NYS procurement rules restrict applicants from soliciting advocacy from ESD staff during the procurement period. Support letters from non-ESD agencies should follow standard agency guidelines.

Is there a net new job requirement, other than for Retail projects? The RFA ties loan eligibility in several places to 'net new permanent jobs' (e.g., retail project exception, relocation provisions). How does ESD define 'net new permanent jobs'—is there a minimum hours/duration threshold or minimum job count? Is the Awardee able to fund retail projects based on expected Sales Tax collections or strictly job growth?

Projects must demonstrate a substantial likelihood of providing net new permanent jobs or retaining viable jobs. Retail projects strictly require an increase in net new permanent jobs (expected sales tax collections alone do not qualify). Net new permanent jobs must a full-time position. There is not minimum job count.

Is the Administering Committee allowed to meet virtually?

Yes, provided all review, quorum, voting, and conflict-of-interest requirements are met.

For the “Please state…” re: State Finance Law 139-j and 139-k, is anything required besides executing the two forms (Offeror Disclosure and Offeror Affirmation)? The link in the RFA says "requested page could not be found."

Please see the link here: SF Law 139 JK Form All procurement requirements must be met.

Can a municipal department apply directly as an Administering Corporation, or must the applicant be a distinct corporate entity (IDA, LDC, CDFI)? If a city partners with an IDA/LDC, what documentation of that relationship is required—and can responsibilities be split across the City, LDC, and a third-party partner, or must one entity hold them all?

The applicant must be a distinct eligible corporate entity (e.g., LDC, IDA, CDFI, Empire Zone capital corp). A single legal entity holds the grant contract, though partners can assist with referrals or technical assistance.

https://www.nysenate.gov/legislation/laws/VET/A3 https://www.nysenate.gov/legislation/laws/VET/A3 https://esd.ny.gov/sites/default/files/media/document/SF-Law139-JK-2025.pdf

If the City and its LDC have each independently administered related loan/grant programs, can that combined track record be presented as one applicant's experience, or must it be attributed strictly to the legal entity that ran each program?

Experience should be clearly attributed to the applying legal entity, though affiliated partnerships can be described to illustrate management capacity.

For an applicant without a direct lending history, can a contracted CDFI/loan servicer (in place now or post-award) satisfy the staffing/expertise requirement—and if so, whose data (applicant's or servicer's) should be submitted?

Applicants must demonstrate internal staffing expertise and lending capacity. If utilizing a servicer, clear documentation of contracted arrangements and the applicant's oversight capacity must be provided.

Loan committee composition & timing:

Must the full 6+ person loan committee (with resumes) be finalized by the application deadline, or is it sufficient to name representative candidates with the rest confirmed post-award? Are the requirements for the Loan Committee “strict” if our organization has an existing loan committee from another program we'd like to utilize?

The proposed Loan Committee details and resumes must be included at application. Existing committees may be used only if they strictly meet the 6+ member statutory composition criteria (at least 1/2 commercial lending experience, 1/3 minority persons, and 1/3 women).

Is general economic-development language in an LDC's certificate of incorporation sufficient under NPCL §1411, or does ESD expect explicit direct-lending authorization?

Applicants must be legally able to receive and use grant proceeds for lending as outlined in the RFA. Organizational bylaws and certificates of incorporation must support this authority.

Does the prohibition on administering parties holding commercial or capital investment in loan recipients extend to affiliated but separate strategic/equity funds working alongside the loan program?

Officers, employees, and board members of the Administering Corporation are strictly prohibited from having any financial interest or being party to any project receiving loan assistance.

Must an applicant have an identified borrower pipeline at application, or can pipeline-building (including with municipal/partner organizations) happen post-award given the retail restriction?

Applicants must demonstrate loan origination capability and marketing strategy in their application, with ongoing pipeline development occurring post-award.

For insurance, do you need us to have ESD named as an additional loss payee when we submit our application, or only if we are awarded? Does the waiver of subrogation in favor of ESD need to be done at submission or post-award?

Insurance requirements (naming ESD as additional insured/loss payee with subrogation waivers) must be satisfied prior to contract execution upon award.

It looks like the Executive Summary segments (in the RFA on page 7) are asked for in both the Executive Summary document upload and in the individual portal questions. Could you verify?

Applicants should complete all required fields on the Submittable platform and upload requested documents to ensure full structural compliance. The executive Summary is an option field if applicants would like to summarize the questions and initiative in the application.

What form of approval for a relocation would be necessary (municipal board resolution, letter from Mayor/Supervisor, verbal)?

Relocations between municipalities require formal written agreement/approval from the governing bodies of the affected municipalities. If you plan to expand your service delivery region under this program, please address this in the application.

Can an awardee partner with another organization to provide Technical Assistance to borrowers?

Yes. Applicants are required to demonstrate linkages with other local service providers to support client technical assistance and sourcing.

Does ESD require interest to be paid on the Trust Fund Account?

Program funds must be held in the Trust Fund Account, and any interest earned or collected on loan repayments is retained to defray administrative expenses.

Is there a template available for loan portfolio reports? (e.g., should US veteran status and/or race/ethnicity be tracked?)

Please see the attached template.

Would you confirm that the term of the award is 1 year?

Contract start is anticipated for October 2026, and the completion date extends through the project utilization period. The utilization period for the program is up to 3 years.