New York is expanding its pandemic-related small business grants to cover organizations with high expense rates, according to a recent announcement. However, new businesses that emerged in 2020 are still largely excluded from government support.

Newly appointed New York State Governor Kathy Hochul (D) recently allowed businesses with up to $2.5 million in revenue to apply for grants of up to $50,000 through the $800 million COVID-19 Pandemic Small Business Recovery Grant Program, according to a press release from the governor’s office. However, such grants applications ask businesses to show at least a 25 percent loss in gross annual income between December 1, 2020, and the same period in 2019, according to the program guidelines. Those who opened their doors mid-pandemic have no such records, but are suffering financially from pandemic pains regardless.

“Small, local businesses are the core of communities,” said Sofie Peltzer-Rollo, co-owner of Ollie’s Pizza in High Falls in a previous interview. “I think that improving access to loans, and removing the complicated red tape around them, would go a long way.”

Ollie’s Pizza and other Ulster County businesses that emerged during the height of the pandemic last year were barred from receiving funding from programs like the “Payroll Protection Program” (PPP) which helped owners pay employees during the business lull.

The state’s Pandemic Small Business Recovery Grant Program aimed its support towards viable small businesses, micro-businesses as well as for-profit arts and cultural organizations, according to the program description. To date, the program has provided more than $48 million in grants to over 2,380 small businesses in the state’s 10 regions, the press release read. Grant awards ranged anywhere from $5,000 to $50,000, depending on the gross annual income of the business. The money can be used to support payroll costs, rent bills, utility expenses and the purchase of cleaning and safety supplies to combat COVID-19. However, the grant could not be used to pay off loans from other COVID-19 relief programs.

"Supporting the small businesses across our state that got hit hard by the pandemic is a top priority for my administration," Hochul said. "We simply cannot have a full economic recovery if the small business community continues struggling to survive. With the Pandemic Small Business Recovery Grant Program opening up to a greater pool of businesses, I strongly urge all the owners who qualify to submit their application so they can access this funding."

Previously, businesses with more than $500,000 in yearly income were not allowed to apply, according to the release. The new $2.5 million cap makes no difference to new businesses which tend to lose money in their first few years before finally turning a profit. Businesses with up to $250,000 in PPP loans are now also allowed to apply for a small business grant, as opposed to the previous cut-off of $100,000, according to the release. Since new businesses never saw a dime of PPP money, this also doesn’t apply to them. Other non-eligible recipients include non-profits, religious organizations, groups involved with lobbying or politics and landlords, to name a few, the program guidelines read.

Businesses that are eligible are advised to submit their applications immediately. Application processing will begin on September 8, according to the release.