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New Chamber report: Federal PPP has injected $25 billion into New York City’s economy and saved 2.7 million jobs

Thursday, April 8, 2021

New Chamber report: Federal PPP has injected $25 billion into New York City’s economy and saved 2.7 million jobs

Manhattan Chamber leading ‘final push’ to maximize applications before May 31 deadline

NEW YORK, April 8, 2021 — Today, the Manhattan Chamber of Commerce released data on the distribution of federal Paycheck Protection Program (PPP) loans in New York City.  The data, which is the latest available, show that a total of 230,747 PPP loans totaling $24.8 billion have been injected into the city’s economy, as of February 27, 2021. This helped to retain nearly 2.7 million jobs in the city during the COVID crisis.

“PPP has been the single-biggest stabilizer for our city’s small businesses during the COVID crisis,” said Jessica Walker, President and CEO of the Manhattan Chamber of Commerce. “It has not been perfect insofar as the application process is confusing, communities of color have been disadvantaged and some businesses are not eligible, but without it, we would have seen far more layoffs and business closures.”

As it currently stands, New York City lost 635,000 jobs between February 2020 and February 2021; and 42% of the city’s small businesses have closed since the pandemic began.

Other major findings on PPP impact in New York City:

  • Nearly 81% of all loans went to businesses with 10 or fewer employees
  • 69% of loans were in the amount of $50,000 or less
  • The number of loans in each borough roughly align with the percent of businesses located in that borough:
    • The Bronx: 7% of loans (8% of the city’s businesses were located here in 2018)
    • Brooklyn: 27% of loans (25% of the city’s businesses were located here in 2018)
    • Manhattan: 40% of loans (42% of the city’s businesses were located here in 2018)
    • Queens: 22% of loans (21% of the city’s businesses were located here in 2018)
    • Staten Island: 4% of loans (4% of the city’s businesses were located here in 2018)
  • Total dollars disbursed was highest in Manhattan at more than $14 billion (57% of all funds)

A full data briefing is available at www.nycindicators.com/ppp-impact.

A Final Push to Maximize Applications in NYC

The PPP application deadline has been extended to May 31, 2021, however, senior officials at the US Small Business Administration (SBA) have indicated that the program could exhaust its funding as early as mid-April if application approvals continue at their current rate.

“It’s critically important that we help as many local businesses as possible to take advantage of PPP,” said Jessica Walker, President and CEO of the Manhattan Chamber of Commerce. “Chuck Schumer and his colleagues at the federal level did their job in terms of allocating these critical funds. Now it’s our duty to get that money into the hands of business owners who desperately need it.”

As such, this week the Manhattan Chamber launched a targeted digital outreach campaign as a final push to maximize the number of businesses that apply in New York City.

In addition, the Manhattan Chamber is helping businesses with the application process. Through the Small Business Resource Network (SBRN), of which the Manhattan Chamber is a service partner, businesses in New York City can receive free help to:

  • determine if a PPP loan is right for them;
  • be connected with potential lenders;
  • complete the application; and,
  • navigate the process to achieve loan forgiveness, if applicable.

As of April 2, 2021, the SBRN had directly helped 480 small businesses with PPP; 258 (54%) of those businesses were in Manhattan.

Learn more about the SBRN at www.smallbiz.nyc.

Background: About PPP

The Paycheck Protection Program (PPP) is a loan program that originated from the federal Coronavirus Aid, Relief, and Economic Security (CARES) Act. This was originally a $350-billion program intended to provide American small businesses with eight weeks of cash-flow assistance through 100 percent federally guaranteed loans. The loans are backed by the US Small Business Administration (SBA).

The program was then expanded by the Paycheck Protection Program and Health Care Enhancement Act in late April, adding an additional $310 billion in funding. The Paycheck Protection Program Flexibility Act made important changes to the program allowing for more time to spend the funds, and making it easier to get a loan fully forgiven.

Then on December 27, 2020 a second stimulus package was signed into law topping up the program with an additional $285 billion in funding and updating the eligible expenses. It also opened up a second PPP loan for businesses that used up their first PPP loan and have experienced a 25% or greater decrease in revenue.

To make the program more inclusive, in February 2021 the SBA eliminated program restrictions that disadvantaged non-citizens who are lawful US residents, business owners with criminal histories, business owners who have struggled to make federal loan payments, as well as sole proprietors, independent contractors and self-employed individuals. In addition, the SBA established a 14-day, exclusive PPP loan application period for businesses and nonprofits with fewer than 20 employees, which began on February 24, 2021.

On March 30, 2021 President Biden extended the application deadline for the program to May 31 (it had been set to expire on March 31). The federal government now has until June 30 to process the applications.

About the Manhattan Chamber of Commerce

The Manhattan Chamber of Commerce is a nonprofit organization that represents and supports the local business community across the borough. We do this by fostering “game-changing” connections for our members and by working with government to ensure that the business climate is supportive and responsive to their needs. Through our foundation, we also host educational events for small business owners and conduct outreach to help them thrive.

The Chamber’s “Indicators of Progress” data dashboard is tracking key data points on the city’s economic recovery in the wake of the Covid crisis, including unemployment, foot traffic, small business revenue, number of small business closures, and more. The dashboard, which is updated weekly, can be found at www.nycindicators.com.

 

Media Contact:

Chris Smith, MWWPR, csmith@mww.com, (646) 459-7036