Lawmakers Vote To Help Small Businesses Hurt By Pandemic

NEW YORK — The New York State Assembly and Senate both passed legislation recently that would extend a lifeline to small businesses crippled by the coronavirus pandemic.

The legislation will now be sent to Gov. Andrew Cuomo for final consideration.

New York State Assemblyman Fred Thiele, who worked to pass the legislation, said it would allow workers to collect unemployment insurance while working part-time, prevent businesses from being charged higher rates for unemployment insurance, and put a stay on evictions and foreclosures for small businesses.

According to Thiele, in the case of small businesses that were forced to let workers go as a result of the COVID-19 pandemic, the new legislation would keep them from being penalized with higher UI rates when they reopen. The "experience rating," Thiele said, is used to assess unemployment charges on employers that reflect their past unemployment claims. Small businesses often have lower UI experience ratings since they usually have a small number of past claims and a low number of employees, he said.

The legislation will exclude those businesses from additional UI charges if they were forced to close or reduce their staff after March 12, 2020.

As for allowing individuals to find part-time work while claiming unemployment, as it stands, the current program imposes a 25 percent reduction to a claimant's full benefit for any work performed in a single day. That measure fails to provide an adequate level of income security for workers who have experienced reductions in usual hours, and creates a disincentive for people to return to part-time work, Thiele said.

In addition to helping New Yorkers, the bill will also improve local economies — for every dollar of UI allocated, between $1.61 and $2 is generated in the economy, he said.

Finally, Thiele said, "The COVID-19 Emergency Protect Our Small Business Act of 2021" would put a moratorium on evictions for small businesses of fewer than 50 employees until May 1, 2021, and create a standardized hardship declaration form to be used by tenants and landlords in order to take advantage of the protections. It would also put a stay on foreclosures for small businesses of 50 or fewer employees that have 10 or fewer properties that they are renting.

In addition, the legislation would provide tax lien protections and negative credit reporting protections to small business property owners.

"Small businesses are the backbone of our economy. Here on the East End and across New York State, businesses are reeling from the financial devastation caused by the COVID-19 pandemic. We must do everything in our power to help small businesses remain viable and essential components of our economy. I was proud to support these measures to provide necessary relief and protections to small business owners, and will continue to fight on behalf of East End small businesses toward that end," Thiele said.