Citing the “devastating impact” the coronavirus will have on small businesses across the state, members of the New York Assembly Minority Conference on Tuesday introduced legislation aimed at helping a range of companies navigate the choppy waters that lie ahead.
Assemblyman Will Barclay, R-Pulaski, and other members within the conference proposed the state’s Small Business Recovery Act of 2020. As proposed, it carries a number of provisions, including resources to assist businesses in making payroll and honoring other financial commitments.
Barclay and others within the conference pointed out an overwhelming majority – 99 percent – of New York state’s businesses are classified as small operations.
Assemblyman Ed Ra, R-Franklin Square, pointed to the practice of social distancing that is having an especially adverse impact on restaurants, bars, entertainment venues and other such establishments.
“We are astutely aware of the negative impact it is having on small businesses across New York – owners and businesses alike,” Ra, a ranking Assembly minority member on the Committee on Ways and Means, said in a statement Tuesday. “The success of small businesses has a critical impact on the state’s overall economic well-being.”
Given the sudden, swift nature of the coronavirus and its spread, Barclay in a news release said the legislation is designed to provide a lifeline to businesses forced to limit operational hours or outright close to comply with government requirements.
“While precautionary measures are necessary, New York’s small businesses are taking a severe and immediate hit,” said Barclay, who serves as the conference’s Assembly minority leader. “The businesses and employees that are so vital to our communities and our state’s economy need our help, and they need it now.”
At its core, the conference’s Small Business Recovery Act of 2020 includes seven calls to action, including a proposal to direct $890 million in the state’s settlement reserve toward small businesses.
Also included in the proposal is the creation of a 0-percent interest loan program so small businesses can meet payroll commitments and an initiative aimed at repurposing available tax credits toward the businesses.
Additionally, the bill calls for unlocking all of the state’s economic development discretionary funding for existing small businesses and suspending all regulator fees for a 180-day period.
Also included in the act are other provisions with 180-day periods, including a proposal to move tax deadlines for remittance, business tax and personal income tax ahead within the prescribed timeframe and suspend the plastic bag ban that currently is imposed at grocery stores.
Assemblyman Christopher Friend, R-Big Flats, cited the unprecedented impact of COVID-19 as a reason he is supporting the legislation.
“Realizing many small businesses across the state have been required to close early, limit the number of patrons they are able to serve or even close – to help mitigate the pandemic’s further effects on the state’s economy – we must help these businesses and their employees now,” said Friend, who is a ranking Assembly minority member on the Committee Economic Development.
Friend said he also is supporting the act because more than half of New York state’s workforce is employed by a small business.
“To continue to let current events further erode the stability of the small business sector would be irresponsible and has the potential to have long-term economic impacts,” Friend said.
As of 1:19 p.m. March 17, there have been 1,374 positive cases of COVID-19 across the state, according to the New York State Department of Health. Westchester County remains the strongest hot spot with 380 positive cases.
