New York City small businesses got disproportionately fewer loans from the federal government’s Paycheck Protection Program than parts of the country that weren’t as hard hit by the coronavirus pandemic, a city comptroller report says.
Only 12% of the roughly 1.1 million employee-based and nonemployer businesses in New York City received a PPP loan, according to the report set to be released Wednesday. By comparison, more than 20% of businesses in states that were less economically affected by the pandemic—like North Dakota, South Dakota and Nebraska—got federal aid, the report says, based on roughly three months of federal data on the program through June 30.
Small businesses in Montana, Kansas, Iowa and Wyoming also received a higher share of PPP loans than businesses in New York City, the report says.
“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,” Comptroller Scott Stringer said in a statement.