With the second spherical of federal government-issued Paycheck Protection Program loans open to business homeowners, City Comptroller Scott Stringer has introduced a plan to guarantee New York mom-and-pop outlets get a good shake — citing the meager quantity of businesses that obtained loans throughout the first spherical.
According to Stringer’s office, simply 12 % of New York’s 1.1 million businesses obtained PPP loans, that are forgivable if the majority is used for worker paychecks — however sparsely populated states like North Dakota, Nebraska, and Iowa noticed more than 20 % of their businesses obtain funds.
In Brooklyn, 53 % of businesses obtained funds, in accordance to the comptroller’s office.
“Too few of our businesses were able to access the first round of funding — so we need to step up at the local level and use every tool at our disposal to proactively ensure our small businesses are not shut out of the next wave of PPP loans,” Stringer stated.
The city’s chief bean counter known as on the city to improve its outreach to small businesses to help them with making use of for the federal loans.
Stringer, who’s operating for mayor, stated the city ought to create a door-to-door outreach workforce in collaboration with Business Improvement Districts to attain out to each service provider alongside particular industrial corridors, and build a multi-lingual workforce for outreach and help to totally different ethnic teams throughout the city.
To improve common consciousness of the program, the city ought to unfold the phrase about the relaunch of the program by means of an promoting marketing campaign, Stringer stated.
Analysis by the non-profit news website The City found that many micro-businesses in New York — businesses with 10 or fewer staff, have been largely neglected of the first spherical of checks primarily due to the advanced application course of.
Stringer known as on the city to work with Minority Depository Institutions and Community Development Financial Institutions, which he stated proved efficient at offering loans to small businesses by means of the pandemic thus far.
“The city should start implementing our recommendations immediately to make sure New York small businesses get their fair share of funding, can remain open, and our economic recovery stays on track,” Stringer stated.
Brooklynites in search of more details about purposes for PPP loans can go to the state’s website here.