Real estate receives just 5% of New York’s PPP loans

Hospitality, retail and restaurants see greater distribution

New York /
Apr.April 19, 2021 04:15 PM
Though some companies have received fat PPP payouts, real estate received just 4.6% of the loans distributed in New York. (iStock)

Though some companies have received fat PPP payouts, real estate received just 4.6% of the loans distributed in New York. (iStock)

The federal Paycheck Protection Program (PPP) has been hailed as a life saver for small businesses in New York. But not all sectors have benefited equally.

New York has distributed $1.5 billion since April 2020 to real estate, rental and leasing companies. That’s just 4.6 percent of the total amount disbursed in the state, according to a February analysis by Comptroller Thomas DiNapoli’s office. Those loans were distributed among 22,000 participants, with the average size being $70,361.

By comparison, retailers in New York received 9.9 percent of the loans across 48,000 businesses, totaling $3.5 billion.

Accommodation and food services similarly received a larger chunk, with 9.1 percent. In that category, $5.5 billion was distributed to 45,000 applicants.

Still, those categories fall behind professional, scientific and technical services, which received 14.3 percent of the loans, a total of $7 billion that is stretched among 70,000 participants.

A separate report by the Manhattan Chamber of Commerce found that 81 percent of all loans went to businesses with 10 or fewer employees and 69 percent of loans were in the amount of $50,000 or less.

Even so, some major companies got fat payoffs thanks to PPP. Among those that received loans of $5 million or more are co-working firm Knotel, which has since gone into bankruptcy; Meridian Capital Group; and CIM Group’s Dominick Hotel at 246 Spring Street, formerly known as Trump Soho.

These real estate companies got fat PPP loans


https://therealdeal.com/national/2021/02/01/knotel-files-for-bankruptcy-set-to-be-bought-by-newmark/

New York received the third most loans in terms of value, falling behind California and Texas. Within the state, the number of loans in each borough roughly aligns with the percentage of businesses located in that borough. Manhattan got the most, with $14 billion, or 57 percent of all funds.

But even with the loans, New York businesses have suffered greatly in the wake of the pandemic. The Manhattan Chamber of Commerce report estimates that New York City lost 635,000 jobs between February 2020 and February 2021, and that 42 percent of the city’s small businesses have closed since the pandemic began.

Jessica Walker, president and CEO of the Manhattan Chamber of Commerce, noted that while the PPP rollout has “not been perfect … without it, we would have seen far more layoffs and business closures.”





    Related Articles

    arrow_forward_ios
    Slate Property Group's Martin Nussbaum and a rendering of the project
    Hakimian, Certes land $59M loan for East Harlem multifamily project
    Hakimian, Certes land $59M loan for East Harlem multifamily project
    Watch TRD Brand Studio’s first-ever webinar on the new office normal
    Optimizing the office: TRD Brand Studio webinar on the new workplace normal
    Optimizing the office: TRD Brand Studio webinar on the new workplace normal
    President Joe Biden and New York State Senator Brian Kavanagh. (Getty, Department of Treasury)
    Federal guidelines could complicate state’s rent relief rollout
    Federal guidelines could complicate state’s rent relief rollout
    The reopening of NYC has created a surge of demand for apartments. (Getty)
    Reopening sparks signs of a real estate rush
    Reopening sparks signs of a real estate rush
    The Real Deal's Hiten Samtani and Urban Green Council CEO John Mandyck
    Watch: Urban Green Council’s John Mandyck on tackling climate change in NY
    Watch: Urban Green Council’s John Mandyck on tackling climate change in NY
    (iStock)
    Canada’s surging housing market may be peaking
    Canada’s surging housing market may be peaking
    Hamptons businesses desperate for workers
    Hamptons businesses desperate for workers
    Hamptons businesses desperate for workers
    (iStock)
    Job recovery sputters, but hospitality & leisure add hiring
    Job recovery sputters, but hospitality & leisure add hiring
    arrow_forward_ios

    The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

    Loading...