Contact: William Alempijevic
April 22, 2020
NYTHA Executive Director
To our community,
We heard your frustration and disappointment with the process for obtaining economic relief in the form of the initial Paycheck Protection Program (PPP) but there was great news reported yesterday and today.
A new package would provide $320 billion to replenish the Paycheck Protection Program (PPP) for small businesses, which was oversubscribed, leaving numerous small businesses including many in the horse industry without access to any funds. The additional appropriation will allow financial institutions to make additional forgivable loans to eligible small businesses in order to keep employees on the payroll for eight weeks.
In reaction to some initial criticisms that PPP loans were not properly targeted to small businesses in need – like ours, this bill sets aside $30 billion of the loan funds for small banks and credit unions with $10 billion to $50 billion in assets and another $30 billion for even smaller institutions.
If you have not yet applied for PPP with your bank please consider doing so as signals point to this round of funding being aimed to fix the issues of the initial one. If you have previously applied but haven’t been given an update we encourage you to re-engage your bank/banker.
If you don’t have a strong relationship with your bank, you may want to consider an alternative. New York State small businesses have been utilizing Community Development Financial Institutions (CDFI) programs to provide an additional pathway for securing their PPP loans. Please click on the links below for more information regarding this option, including a current list of CDFI member institutions that may be more readily able to assist you.
CDFI’s are not for everyone but we wanted to pass along any potential avenue that may assist you. The fundamentals of the PPP are strong and our small businesses – all of you – deserve your fair share.
Please let us know if you have any questions.