Billions of dollars in potentially forgivable Payroll Protection Program (PPP) capital remains available to small businesses and nonprofits to help provide eight weeks of payroll and certain overhead to keep workers employed.

PPP, created out by the Coronavirus Aid, Relief, and Economic Security (CARES) Act, is responsible for infusing billions of dollars of capital into small businesses nationwide and saving jobs.

The second round, which kicked off April 27, has awarded 2,378,057 loans worth $181,158,888,644 as of close of business on Tuesday, May 5.

More than 900K of those loans, worth $57,296,660,188, were issued by small lenders.

The average PPP loan size is currently $76,000, a $130,000 reduction from the round one size, showing the dollars are further assisting mom & pops. SBA forgives the portion of Paycheck Protection loan proceeds used to cover the first eight weeks of payroll costs, rent, utilities, and mortgage interest.

Loan payments may be deferred for one year, and is retroactive from Feb. 15, so employers can rehire their recently laid-off employees through June 30.

“The Paycheck Protection Program is working. Small businesses are keeping their employees on payroll and earning salary,” said SBA Atlantic Regional Administrator Steve Bulger, who oversees the federal agency’s operations in New York, New Jersey, Puerto Rico and the U.S. Virgin Islands.

“For this federal program to work for you and your employees, I encourage you to submit an application through a PPP-participating bank, credit union, CDFI or online lender.”

Approved Lenders can be found using the SBA Lender Locater at www.sba.gov/ppp.

“Upstate New York small businesses have a lifeline in the Paycheck Protection Program," added SBA Syracuse District Director Bernard J. Paprocki. "The funds loaned from your bank or lender will help pay your team’s salaries for eight weeks and keep your venture intact and well-positioned to not only survive but succeed."

The SBA Syracuse District Office serves 34 Upstate New York Counties from the Hudson Valley and Capital Region to the Mohawk Valley, North Country, Finger Lakes and Southern Tier.

Loan forgiveness is based on the borrower maintaining or quickly rehiring employees while maintaining salaries and hours. PPP loans have a maturity of two years and an interest rate of 1 percent.

A copy of the PPP borrower application form with all information the federal government requires a small business to provide can be found here. 

U.S. Senate Minority Leader Charles E. Schumer today revealed that as part of his negotiation priorities for the interim emergency bill that passed the Senate yesterday, he has ensured that agricultural enterprises will be added as an eligible recipient for grants of up to $10,000 and low-interest loans through the Small Business Administration’s (SBA) Economic Injury Disaster Loan (EIDL) program.

This assistance can help cover business expenses, including payroll and other operating expenses.

Schumer has relentlessly advocated for New York’s farms during the coronavirus (COVID-19) crisis, securing more than $9.5 billion in emergency funding in last month’s CARES ACT for the agricultural sector suffering massive financial losses due to reduced demands and supply chain disruptions, and calling on the United States Department of Agriculture (USDA) to immediately release aid to hardest-hit agricultural businesses, 

“Making our hardworking Upstate farmers eligible for this vital federal emergency grant-and-aid program was a huge priority for me and I am proud to have secured them this much-needed and well-deserved access to a program that could be a lifeline in these very difficult times,” Senator Schumer said. “I fought hard because just like any other small business in New York, access to this funding could be a vital lifeline for our farmers during this time of crisis.

"In good times, New York farmers are some of the best in the world and work long hours on tight margins, but in the midst of a global pandemic, they are losing revenue streams, suffering huge financial losses and being forced to discard their products. They need all the help we can offer – and they need it now.”

About 23 percent of New York State’s land area, or almost 7 million acres, is farmland, and with more than 33,000 farms across the state and nearly 700 farmer’s markets, New York’s agricultural sector is one of the hardest-hit industries in the nation. Additionally, 96 percent of farms in the state are family-owned.

Since the March passage of the CARES Act, there has been demand from the agricultural community for the SBA to include agricultural enterprises to the EIDL program. With this fix to the EIDL program, farms and other agricultural enterprises under 500 employees will be eligible to apply for SBA grant and loan disaster assistance.

Schumer added, “the bill originally pushed by Senate Republicans had absolutely no fix for our farmers, nor did it have any money for the entire Emergency Injury Disaster Grant and Loan Program. But we stopped that bill so we could make vital improvements, like making sure our farmers had full access to all key forms of federal aid to get through the tough times.”

Here are the facts:

• Farmers and other agricultural enterprises are now eligible for the EIDL program.

o   The bill passed in the Senate yesterday adds agricultural enterprises under 500 employees as an eligible recipient for grants of up to $10,000 and low-interest loans through the SBA’s Economic Injury Disaster Loan Program.

o   There has been a demand from the agricultural community for SBA to change its rules so agricultural enterprises would be eligible for the SBA’s EIDL loans and the new EILD grant program, but no such rule change has happened.

o   The interim emergency bill proposed by Democrats called for this key fix to support the nation’s farmers, which would not have happened under the original proposal that would have solely increased in funding for PPP. 

Here's a breakdown of the number of farms in each region of New York:

Region

# of Farms (2017)

Western NY

3,814

Finger Lakes

5,945

Southern Tier

7,028

Central NY

7,537

Capital Region

6,240

Hudson Valley

2,246

NYC

36

Long Island

592

Total

33,438