Flushing businesses received fewest PPP loans in NYC: Report
A worker unloads boxes of merchandise at a UNIQLO store on the first day of the phase two re-opening of
businesses in New York City. REUTERS/Mike Segar
TIMESLEDGER | QNS.COM | JULY 17-JULY 23, 2020 5
BY ROBERT POZARYCKI
Loans provided through the Payroll Protection
Program (PPP) saved nearly 1.4 million jobs across
New York City. But an analysis of federal government
data shows great disparities in where the financial aid
was distributed.
Renthop released on Tuesday a report analyzing
the latest loan-level data set on the PPP that the federal
Small Business Administration released on July 6
regarding the 4.9 million PPP loans provided through
the program across the U.S.
PPP was enacted in April to curb massive job losses
among businesses with 500 or fewer employees during
the economic downturn connected to the COVID-19
pandemic. In New York City alone, companies received
more than 147,000 loans to secure their payroll
and retain their employees.
But Renthop’s review of the SBA data on PPP
showed that “PPP funds did not assist all neighborhoods
equally.” Higher income neighborhoods such
as Greenpoint, Brooklyn and Manhattan’s Financial
District received a disproportionately higher number
of PPP loans than middle- or working-class neighborhoods
such as Flushing, Queens, or Bath Beach,
Brooklyn.
Of the 1,782 businesses in Greenpoint that qualified
for PPP loans, the report found that 78.2 percent
of them (1,394) received the financial help they sought.
Meanwhile, in Flushing, just 38.3 percent (913) of the
2,381 qualified businesses were provided with PPP
help.
The bulk of all PPP loans distributed in New York
went to businesses in seven Midtown Manhattan
neighborhoods — home to many businesses serving
the professional, scientific and technical services
fields that employ hundreds of thousands of people.
Businesses located in the 10001, 10016, 10017, 10018,
10019, 10022 and 10036 ZIP codes received a combined
24,901 PPP loans, protecting approximately 320,467
workers in the process.
Those seven Manhattan ZIP codes received nearly
three times as many loans, which protected four times
as many workers, than the entire Bronx, which received
a combined 9,576 PPP loans for 79,346 workers.
Quantity of the loans in a geographic area did not
diminish their overall quality, according to Renthop.
Midtown Manhattan’s 10001 ZIP code received the
most PPP loans in New York City, and nearly a third
of applicants (31 percent) received loans in excess of
$150,000. Likewise, in downtown Bowling Green, more
than 40 percent of all PPP loans were also $150,000 or
higher.
The business fields in New York City that received
the most PPP help included professional, scientific
and technological services; retail trade; health care;
construction; and other miscellaneous services not
provided by public administration.
Read the full report online at renthop.com.
Reach reporter Robert Pozarycki by e-mail at
rpozarycki@qns.com or by phone at (718) 260-4549.
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