Despite drastic daily declines in new coronavirus cases since early March, local businesses throughout Nassau County and Long Island continue to be shuttered, with 70 percent saying the ripple effects of the pandemic are worse than expected, a bi-county survey revealed.
The study was conducted with help from officials in both Nassau and Suffolk counties, the Nassau County Economic Advisory Council and Hofstra University. Of the 1,300 businesses that participated in the survey, 55 percent were not designated an essential business, and 80 percent are small businesses with 10 or fewer employees, according to the survey.
Nassau County Executive Laura Curran said the need to supply Nassau County businesses with loans remains paramount to keep them afloat during times of uncertainty.
“The pain and uncertainty caused by COVID-19 for our small businesses, their employees and families remains constant,” Curran said. “Loans have served as a lifeline for more than half of our businesses, but it’s clear, the need continues.”
Of the 1,300 responses, 52 percent said they had secured a loan and 12 percent said they plan to apply.
The survey revealed 78 percent of respondents currently have a loan pending with the Small Business Association and for a majority, it has been pending for more than a month. A majority of the loans, according to the survey, range from $500 to $50,000. Forty-six percent of businesses that responded said they experienced difficulty in the loan application process, the survey said.
Curran recently announced the county’s Boost Nassau Loan Program, which provides aid to small businesses that did not receive prior aid from the Small Business Administration or the Payroll Protection Program.
According to county officials, the program will secure up to $10 million in loans for the county’s small businesses hit hardest by the coronavirus pandemic.
The program is part of the state’s “NY Forward Loan Fund,” a program that targets the state’s small businesses with 20 or fewer full-time equivalent employees, nonprofits and “small landlords” that have seen a loss of rental income. According to state figures, 90 percent of all businesses throughout New York have 20 or fewer full-time equivalent employees.
Businesses can obtain up to $100,000 in loans with less than $3 million in annual revenue. Nonprofits have a 2 percent interest rate on the loan, while small businesses have a 3 percent rate, officials said.
Businesses or entities that obtained funding through the Paycheck Protection Program or an Economic Injury Disaster Loan are not eligible for the state’s lending program, officials said.
Loans must be paid back over five years, with interest-only payments for the first year, and principal and interest payments for the remainder of the reimbursement period. The loan, according to officials, can be used for reopening expenses such as redesigning or layout changes to comply with the state’s social distancing mandates, rent, property taxes or operating costs.
“With our Boost Nassau loan program and PPE giveaway, Nassau County is stepping up to ensure businesses and nonprofits have the resources they need to survive, keep their employees, and build confidence in customers – a key challenge,” Curran said. “In addition to doing everything I can on the County level, I am reigniting my push for further small business support from our federal partners.”
The results from the survey will be used by the county’s consulting firm, HR&A, in a study on how each industry sector on Long Island and the workforce are faring, according to county officials. The analysis will better inform a regional recovery strategy, officials said.
