State legislators have proposed several bills in the early days of the COVID-19 pandemic aimed at helping businesses that have been ordered closed to prevent the virus’ spread.

Assemblyman David Buchwald, D-White Plains, introduced A.10208 on Tuesday to create the Coronavirus Pandemic Small Business and Not-For-Profit Loan Program to provide loans to businesses or non-profits with less than 100 people.

To be eligible, businesses would have to show they lost 25% or more of their sales due to the coronavirus pandemic.

The state would administer a program that guarantees the repayment of loans up to $75,000 to small businesses and non-profits to lending institutions.

The program would be open to any bank or credit union, with the lending institutions notifying the state in writing no more than one day after a loan is finalized with information about the borrower.

Banks would not be able to use a business’ or non-profit’s creditworthiness when deciding on a loan, can’t require any payment in the first 90 days but can require repaying the loan in full in roughly 270 days in between three and six equal payments. There would be no fee or penalty for early payment of the loan.

If the borrower defaults, the loan would be reassigned from the lending institution to the state, which could then decide whether or not to continue trying to collect on the loan.

A similar program, A.10212/S.2520C, has been proposed by Assemblyman Steven Otis, D-Port Chester. The main differences between the two bills are the size of the businesses and non-profits that would be eligible and the size of loans; Otis’ legislation limits businesses and non-profits to 50 or fewer employees while limiting loans to $5,000.

“With the outbreak of the coronavirus, many of New York’s small businesses and not-for-profits have been put into precarious financial positions,” Otis wrote in his legislative justification. “Workers are forced to take sick days, customers and clients are staying home, and supply costs are skyrocketing. For small businesses and not-for-profits which already run on tight margins this can be catastrophic. This bill seeks to create a loan program that would allow eligible financial institutions to make loans to small businesses and not-for-profits with no interest during a 90 day grace period or 180 days following the grace period. With the urgency that goes along with combatting the coronavirus, it is vital to protect New York’s small businesses and not-for-profits during this state of emergency.”

Sen. James Sanders, D-South Ozone Park, has proposed legislation suspending mortgages and loans from state-chartered banks and credit unions for small businesses and restaurants that have closed or reduced services due to the coronavirus. S.8109 was introduced on March 23 and referred to the Senate’s Banks Committee, of which Sen. George Borrello, R-Sunset Bay, is a member. Payments would resume 30 days after the state removes the suspension on loans and mortgages, with determinations on a business’ or restaurant’s eligibility to be made by the state Department of State.

“The federal government and New York state have declared emergencies over the coronavirus (COVID-19) pandemic,” Sanders wrote in his legislative justification. “This bill seeks relief for small businesses and restaurants that have closed or reduced services due to the coronavirus by suspending mortgage and loan payments for a limited time period.”

Sanders has also proposed S.8121 to create a State of Emergency Minority And Women Owner Business Enterprises Loan and Grant Program which would make minority- and women-owned business with fewer than 100 employees and that have seen sales decreases of 25% or more eligible for no-interest loans of up to $75,000. Minority- and women-owned businesses with fewer than five employees would be eligible for a grant to cover 40% of payroll for two months up to $10,000 to help them retain employees.