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Loans under the federal government’s Wage Protection Program (PPP) have saved nearly 1.4 million jobs in New York City amid the coronavirus outbreak – but an analysis of data from the government shows vast disparities in the distribution of financial aid.
Forgivable loans of up to $ 10 million have been distributed disproportionately to businesses in high-income neighborhoods, while many qualified businesses in South Brooklyn have been left without assistance, a recent analysis from the website of RentHop apartment ads.
The Small Business Administration enacted the Payment Protection Program in April to curb massive job losses among businesses with 500 or fewer employees during the COVID-19 pandemic. In New York alone, companies have received more than 147,000 loans to secure their payroll and retain their employees.
Greenpoint, Park Slope and Brooklyn Heights received the highest percentage of P3 loans of any neighborhood in the city, with between 73% and 78% of businesses claiming a federal loan. Meanwhile, only 44% of businesses in Bay Ridge and 48% of businesses in Bath Beach received the funds – the second and fourth lowest figures in the city.
Nearly 1,400 Greenpoint companies have received federal loans, allowing them to keep more than 10,400 jobs, according to the report. Eight companies have taken in more than $ 2 million in loans, with two companies totaling between $ 5 million and $ 10 million.
In ZIP code 11209, which includes Bay Ridge and Fort Hamilton, nearly 1,100 businesses received a P3 loan, preventing the loss of nearly 7,000 jobs, according to the report. Two companies received loans over $ 2 million and none received loans over $ 5 million.
Midtown Manhattan zip code 10001 received the most P3 loans in New York City, and nearly a third of applicants (31%) received loans over $ 150,000. Likewise, in downtown Manhattan, 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 public administration, according to the report.
Read the full report online at renthop.com.
This article first appeared on AMNY.com.