BUFFALO, N.Y. — During the COVID-19 pandemic, many small businesses in the Western New York region took a devastating financial impact.
U.S. Senator Chuck Schumer (NY-D) was in Buffalo Wednesday pushing for more financial assistance for small business owners.
Schumer unveiled legislation that would provide additional support the the state's smallest businesses through the Paycheck Protection Program. The proposed legislation would extend the PPP loan period until the end of the year, while also giving eligible small businesses the option of a second PPP loan.
"The PPP has been a lifeline for Western New York small businesses struggling to stay afloat during these turbulent times, and last week, I fought to ensure that the program would continue to support our hard-working New Yorkers for at least another month,” Schumer said. “However, as New York seeks to recover from the crisis, we need to do even more for businesses hardest-hit by the pandemic. This legislation will bring much-needed changes to the existing PPP program to make loans more accessible to the smallest businesses and nonprofits in Western New York that are struggling the most and make a second round of relief possible for businesses that need the extra support.”
The new legislation, called the Prioritized Paycheck Protection Program Act, or P4 Act, would allow small businesses to get funding worth 250% of monthly payroll costs, up to $2 million. If passed, the P4 Act would be eligible to small businesses and nonprofits with less than 100 employees, sole proprietors, independent contractors, self-employed borrowers, and rural and historically underserved communities.
During the first PPP, the Western New York region saw over 19,000 businesses get loans from the federal government. However, many of those companies would not qualify under the P4 Act. The legislation would also hold either $25 billion or 20% for employers who have 10 or fewer employees.
Western New York has seen over a 20% decline in private-sector employment since the pandemic began, according to Schumer. He said that it's critical that the federal government act to help revive the region's economy.