COVID-19 Relief for NY Small Businesses Now Available
Owners of New York-based small businesses can now apply for a COVID-19 recovery grant provided by the state. Those eligible can get up to $50,000.
The funds can only be used for covering losses or expenses related to the pandemic and incurred between March 1, 2020, and April 1, 2021. Some of these are payroll, utility, equipment, insurance, commercial rent and mortgage, as well as heating, air conditioning, and ventilation costs. Business owners mustn’t use this money for paying off loans obtained from a federal COVID-19 relief package.
Eight hundred million dollars has been allocated for this endeavor, which will last until the sum is depleted. Seeing as the available funds are limited, business owners who are in some way socially or economically disadvantaged will be given preferential treatment, while entities such as nonprofits, churches and other religious institutions, landlords, as well as illegal enterprises will not be able to qualify at all.
Annual gross receipts from 2019 will be used for calculating grant amounts. Those amounts are:
-$5,000 for businesses whose annual receipts equal $25,000 to $49,999.99
-$10,000 for businesses whose annual receipts equal $50,000 to $99,999.99
-$50,000 for businesses whose annual receipts equal $100,000 to $500,000
“Small businesses are one of the most critical components of New York’s economy and were disproportionately impacted by the economic devastation resulting from the COVID-19 pandemic,” said Andrew Cuomo, the governor of New York.
The state has also announced several additional pandemic relief programs. However, considering the vast impact the virus has had on the US economy, it’s unlikely that every single company in need of financial aid will be able to receive it. Luckily, there are alternatives, as more and more lenders have started offering affordable bad credit loans for business.