New York Coronavirus Relief Programs

By Ben Geier, CEPF®

The State of New York — especially New York City — is one of the epicenters for the COVID-19 epidemic in the U.S.. More than 1,000 people have died of the virus in the Empire State, and infections are reaching such a rate that New York City has built a makeshift hospital in Central Park. Residents of the state continue to be advised to practice social distancing, and non-essential businesses are shut down. There are plenty of programs out there, though, that can help both individuals and businesses who have been negatively impacted by the crisis and need a bit of help to get through. If you are worried about protecting your finances through the crisis and the recession, consider working with a financial advisor.

New York State has a number of relief programs in place that go beyond the federal measures outlined in the Coronavirus Aid, Relief and Economic Security (CARES) Act to provide for those in need amid the coronavirus recession. These initiatives help out New Yorkers as a result of the COVID-19 crisis.

First, Governor Andrew Cuomo announced a 90-day freeze for mortgage payments if the property owner is dealing with financial hardship as a result of the crisis, along with a 90-day freeze on foreclosures. If you can’t make your mortgage payment, you won’t be penalized for 90 days. Though many have also pushed for a rent freeze — which would especially help those in New York City, which has been hit hard by COVID-19 and has a large number of people renting their homes — this has not yet materialized.

Like most municipalities. New York City shut down schools in March to slow the spread of the pandemic. In an metropolis like New York City, that has wide ranging implications, including the fact that for some children who live in low-income communities, school food may be the only nutritious and substantial meals they are able to get all day. To counteract this, grab-and-go meals — up to three a day — are being distributed at in front of school buildings.

The federal CARES Act also has $5 billion earmarked for the New York State government. There hasn’t been any announcement yet as to what that will fund, but it must go directly to COVID-19 relief.

The coronavirus pandemic has also severely impacted small businesses, especially restaurants, bars and other service establishments that have had to close or convert to takeaway due to the crisis. While the federal programs described above should help, there are also several programs in New York, especially for businesses in the five boroughs of New York City, that will help businesses stay afloat.

First, there are two programs in New York City for businesses that have had a downturn because of the pandemic. The first is the New York City Employee Retention Grant Program. This is for businesses in the five boroughs with between one and four employees who can show that the pandemic has caused a loss of at least 25% in revenue. To qualify, the business must have been in operation for at a least six months. This program offers grants covering 40% of a company’s payroll, capped at $27,000. Apply here.

The second New York City program is the New York City Small Business Continuity Loan Fund. This is for businesses in the city who have lost at least 25% of their revenue and have fewer than 100 employees. It offers zero interest loans for up to $75,000. Apply here.

Outside of official government programs, there are other places providing help to small businesses. If you run a non-profit, you may be eligible for a loan from the New York Community Trust. The James Beard Foundation is providing help to small independent restaurants impacted by the crisis. Non-profit organization Southern Smoke is helping both restaurants and their employees.

There are federal programs that can help both individuals and businesses.

For individuals, the recently passed CARES Act includes a one-time direct payment of cash to individuals. The maximum payment is $1,200 for an individual and $2,400 for a married couple filing taxes jointly, plus an additional $500 for children. This program is means-tested, meaning that those who had higher income in the previous year get less. The cutoff for the maximum payment is $75,000 for individuals and $150,000 for married couples. The maximum income you can have had to get any check is $99,000 for individuals and $198,000 for married couples. Use our coronavirus stimulus check calculator to see how much money you can expect to receive.

If you lose your job, there are provisions in the CARES Act that allow you to receive enhanced unemployment benefits. First, it allows unemployed workers who lost their job because of the pandemic to claim unemployment for up to 39 weeks — 13 weeks longer than in most states. The federal government is also providing an additional $600 per week in unemployment benefits through the end of July 2020. Workers can also use paid sick leave for coronavirus.

The federal government also has coronavirus relief for small businesses available. The most prominent of these is the Paycheck Protection Program, which is designed to help small businesses meet payroll during the pandemic. These loans are available for up to $10 million or 2.5 times your company’s monthly payroll, whichever is less. There are also federal economic disaster loans, available for up to $2 million.

The COVID-19 pandemic has impacted life all over the world, but New York is one of the places in the United States currently most affected by the crisis. Though life may be difficult for many New Yorkers are the moment, there are a variety of programs available in the state to help both small businesses and individuals who are struggling as a result of the crisis. Federal programs are helping small businesses get fully-guaranteed loans, forgivable in many cases, and most Americans can expect a stimulus check. New York City also has programs available, and independent organizations are helping out as well.

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  • If your income has changed as a result of the pandemic, the taxes you owe are likely to change too. Use SmartAsset’s income tax calculator to see what you may end up owing.

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