Comptroller Says NYC Small Businesses Shut Out Of Fair Share Of PPP Loans

New York City was shut out of its fair share of federal payroll aid for small businesses while smaller states received proportionally more assistance, according to a report from city Comptroller Scott Stringer released on Wednesday.

In a press release on the report, Stringer noted that roughly 12% of the more than 1.1 million employee-based and non-employer businesses in New York City — which was severely impacted by the COVID-19 outbreak — received Payroll Protection Program loans from the U.S. Small Business Administration to cover payroll costs and other expenses during the pandemic, according to SBA data through June 30th.

“New York is contributing more to the federal government than nearly any other state, but Washington continues to return the favor at pennies on the dollar. In our time of need, Congress is failing to step up, ” Stringer said in a statement. “New York City is the economic engine of the nation and PPP loans should be a lifeline to our businesses that have been ravaged by the COVID-19 pandemic. But Washington has made it too hard for small businesses to access these PPP dollars, which means the small businesses that need help the most are getting shut out. Our analysis proves New York City’s workers and entrepreneurs have been shortchanged — especially nonprofits and outer-borough businesses that were hardest hit. The federal government must to step up to the plate and help New Yorkers get back on their feet — enough is enough.”

Read the full article here.