Queens gig workers miss out on PPP assistance, report finds
/
Just 2 percent of eligible self-employed and gig economy workers in Queens received assistance through the federal Paycheck Protection Program, an analysis by the city comptroller’s office finds. Photo by Seth Werkheiser/Flickr
By David Brand
Just 2 percent of Queens’ self employed workers and independent contractors received federal loans designed to shore up businesses devastated by the COVID-19 pandemic, according to an analysis by the city comptroller’s office.
Workers in the so-called gig economy were eligible for the loans, but only 5,629 of Queens’ 266,193 “nonemployer” businesses received money through the Paycheck Protection Program, which passed as part of the federal CARES Act in April. Non-employer businesses include self-employed individuals, independent contractors and sole proprietorships
Eligible employer businesses — companies with between two and 499 employees — fared better, with 48 percent of Queens’ 50,657 eligible employer businesses receiving some PPP assistance. The loan program was established to help small businesses continue paying employees during the COVID-19 economic slowdown.
Citywide, about 50 percent of eligible employer businesses received PPP loans, but just 12 percent of New York City’s 1,186,728 eligible employer and nonemployer businesses.
via comptroller’s report
The rate of eligible New York City businesses receiving PPP loans trailed the rate in every state but North Carolina, the comptroller’s report found.
“Washington has made it too hard for small businesses to access these PPP dollars, which means the small businesses that need help the most are getting shut out,” said Comptroller Scott Stringer. “Our analysis proves New York City’s workers and entrepreneurs have been shortchanged — especially nonprofits and outer-borough businesses that were hardest hit.”
“The federal government must step up to the plate and help New Yorkers get back on their feet — enough is enough,” he said.
Different industries and economic sectors had markedly different rates of PPP assistance. While 90 percent of eligible Queens hotels received some money, just 20 percent of eligible social service providers got assistance.
Information released by the federal Small Business Administration and analyzed by the Eagle showed that 21,480 companies with Queens zip codes received PPP payments of less than $150,000. The businesses ranged from a South Ozone Park information services firm that received $2 to a Whitestone construction firm that took in $149,990, according to the data.
The average loan amount was about $28,072 and the median loan was $16,710, according to an analysis of the data, but some of the data may be flawed, said Tom Grech, president of the Queens Chamber of Commerce.
Extremely low loan amounts, like the $2 listed for the South Ozone Park company, may have been typos by the SBA, Grech said.
Stringer’s report reveals just how many Queens businesses were left behind by the PPP, especially at the start of the program when the SBA saw a surge in applications. Companies that lacked a chief financial officer or an accessible accountant struggled to complete the complex paperwork, Grech said last week.
“At the Queens Chamber of Commerce, the majority of businesses have 10 or fewer employees. They don’t have expert financial folks on staff,” Grech said.
“The documents they needed to submit might not have been handy. And then there’s the language barrier,” he added. “Those put Queens businesses at a distinct disadvantage.”
