Massive inequality in the distribution of PPP loans in New York: report

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Payroll Protection Program (PPP) loans have saved nearly 1.4 million jobs in New York City. But an analysis of federal government data shows large disparities in where financial aid has been distributed.

Renthop released a report on Tuesday analyzing the latest PPP loan level data set that the Federal Small Business Administration released on July 6 regarding the 4.9 million PPP loans provided under the program across states. -United.

The PPP was enacted in April to curb massive job losses among companies with 500 or fewer employees during the economic downturn linked to the COVID-19 pandemic. In New York alone, companies have received more than 147,000 loans to secure their payroll and retain their employees.

But Renthop’s review of SBA’s PPP data showed that “PPP funds have not helped all neighborhoods in the same way.” Higher-income neighborhoods such as Greenpoint, Brooklyn, and Manhattan’s Financial District received a disproportionately higher number of P3s than middle-class or working-class neighborhoods such as Flushing, Queens or Bath Beach, Brooklyn.

Of the 1,782 Greenpoint businesses eligible for PPP loans, the report found that 78.2% of them (1,394) received the financial help they were looking for. Meanwhile, in Flushing, only 38.3% (913) of the 2,381 qualified companies received PPP assistance.

The bulk of all PPP loans distributed in New York City went to businesses in seven Midtown Manhattan neighborhoods, which are home to numerous companies serving the professional, scientific and technical services fields that employ hundreds of thousands of people.

Companies located in postal codes 10001, 10016, 10017, 10018, 10019, 10022 and 10036 received a total of 24,901 PPP loans, protecting around 320,467 workers.

Those seven Manhattan zip codes received nearly three times as many loans, which protected four times as many workers, as the Bronx as a whole, which received a total of 9,576 PPP loans for 79,346 workers.

The quantity of loans in a geographic area has not diminished their overall quality, according to Renthop.

Midtown Manhattan ZIP code 10001 received the most P3 loans in New York City, and nearly a third of applicants (31%) received loans greater than $ 150,000. Likewise, in downtown Bowling Green, over 40% of all P3 loans were also $ 150,000 or more.

New York City’s business areas that received the most PPP assistance included professional, scientific and technological services; retail business; health care; construction; and other miscellaneous services not provided by the public administration.

Read the full report online at renthop.com.

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