More small businesses will be eligible for pandemic-relief grants from New York State under program changes announced by Gov. Kathy Hochul.
She said businesses with yearly revenue of up to $2.5 million may now apply for the COVID-19 Pandemic Small Business Recovery Grant Program, which has $800 million to distribute. Previously, only businesses with revenue of $500,000 or less were eligible.
Restrictions also have been eased on companies that received Paycheck Protection Program loans. Those with loans of $250,000 or less can now participate in the state grant program, up from $100,000 or less.
The grant program, which was included in the 2021-22 state budget, initially targeted the smallest of small businesses and small for-profit arts and cultural organizations that missed out on the PPP and other COVID-19 relief programs. Applications began to be taken on June 10.
To date, about $43 million in grants have been distributed to more than 2,380 applicants statewide, Hochul said.
“We simply cannot have a full economic recovery if the small business community continues struggling to survive,” she said on Wednesday, adding that help for businesses to successfully emerge from the pandemic is “a top priority” for her.
There is no change in the employment threshold to qualify for a grant: applicants must have 100 or fewer employees.
The grants are between $5,000 and $50,000 per applicant and the amount is based on the applicant’s 2019 gross receipts.
The money still must serve as reimbursement of employee wages, rent and mortgage payments on property in New York State, taxes, utility bills and other operating expenses from the pandemic between March 1, 2020 and April 1, 2021. Also reimbursable is the purchase of masks, gloves, face shields and other personal protective equipment and improvements to ventilation systems to slow the coronavirus’ spread during the period.
More information and the grant application may be found at https://nysmallbusinessrecovery.com/
State Sen. Anna Kaplan (D-Great Neck), who sponsored the bill establishing the COVID grants, said, “So far, the program has been too restricted to reach all the businesses we intended to help with these funds.” By loosening the eligibility requirements, “we can get this money to the small businesses who desperately need it,” she said.
The grant program is run by Empire State Development, the state’s primary business-aid agency. The agency’s COO Kevin Younis said it has aided many microbusinesses and now by “enabling additional small businesses access to recovery grants will assure the broadest possible rebound for New York State’s economy.”
