Federal relief favored restaurants in wealthy areas: study

Only 28% of Restaurant Revitalization grants went to low-income businesses

New York /
Jan.January 05, 2022 06:18 PM

The average business in a low-income community received about $276,000, compared to more than $590,000 for those elsewhere. (iStock)

In low- and moderate-income neighborhoods, the Restaurant Revitalization Fund was a low tipper.

Of the nearly 5,500 awards to New York City eateries, approximately 28 percent went to businesses in low- and moderate-income communities, data compiled by state Comptroller Thomas DiNapoli’s office show.

Furthermore, many of those loans were for relatively small amounts. The average business in a low-income community received about $276,000, compared to more than $590,000 for those elsewhere.

At a more granular level, the discrepancies are even more pronounced, according to the report.

In Manhattan, businesses in low-income communities received only 6 percent of the borough’s Restaurant Revitalization Fund dollars, with the average business receiving $314,000. That figure was over $855,000 in non-low-income communities.

In Chinatown and the Lower East Side, the 59 percent of businesses located in low-income areas received only 30 percent of Restaurant Revitalization Fund money. In the Bronx, the 74 percent of businesses in low-income communities received 60 percent of the Restaurant Revitalization Fund dollars.

For Paycheck Protection Program loans, the story was similar in 2020 as 30 percent of grants to the city went to businesses in low-income communities in 2020. In 2021, however, that share jumped to 43 percent.

The Open Restaurant Program, which allows restaurants to place seating on the sidewalk and parking lanes, had disparities within boroughs, but overall, eateries in low-income areas applied at similar rates to those in wealthier neighborhoods. About 29 percent of total applications in 2020 came from restaurants in low-income communities, which was proportional to the areas’ share of restaurants in the city as a whole.

In Brooklyn, a smaller-than-expected share of applications, 33 percent, came from low-income areas, which account for 40 percent of restaurants in the borough. In Queens, on the other hand, a larger-than expected share of applications came from low-income communities: 41 percent, outstripping their 28 percent share of the borough’s restaurants.





    Related Articles

    arrow_forward_ios
    ABS Partners Real Estate founder Earle Altman and 270 Madison Avenue (ABS Partners, LoopNet, iStock)
    NY Public Library leases 41k sf for Midtown offices
    NY Public Library leases 41k sf for Midtown offices
    Legion Investment Group's Victor Sigoura and 26 East 84th Street (Getty Images, Google Maps, iStock)
    Old-guard landlords cash out in Manhattan, Bronx multifamily deals
    Old-guard landlords cash out in Manhattan, Bronx multifamily deals
    Ben Shaoul and 1457 North Main Street (Getty, LoopNet)
    Ben Shaoul plans 376-unit complex near L.A.’s Chinatown
    Ben Shaoul plans 376-unit complex near L.A.’s Chinatown
    CHIP executive director Jay Martin (LinkedIn, iStock / Photo illustration by Priyanka Modi)
    Landlords called it: Vacancy rate jumps, rent-stabilization stays
    Landlords called it: Vacancy rate jumps, rent-stabilization stays
    331 Elmora Avenue and 103 Ryan Street (Kislak Realty)
    Tri-state deal roundup: Multifamily, industrial still hot
    Tri-state deal roundup: Multifamily, industrial still hot
    From left: Vice Media CEO Nancy Dubuc, Rudin’s CEO and co-chairman Bill Rudin, and Dock 72 (Getty Images, S9 Architecture, Rudin Management, iStock)
    Vice scraps move to Rudin’s Dock 72
    Vice scraps move to Rudin’s Dock 72
    From left: Metro Loft Management founder Nathan Berman, Silverstein Properties chairman Larry Silverstein, and 55 Broad Street (Metro Loft, Silverstein Properties, LoopNet)
    Silverstein, Metro Loft pick up Rudin’s 55 Broad Street for $180M
    Silverstein, Metro Loft pick up Rudin’s 55 Broad Street for $180M
    1552-1560 Broadway and Wharton Properties’ Jeff Sutton (Google Maps)
    Investor claims Jeff Sutton cheated him out of millions on Times Square deal
    Investor claims Jeff Sutton cheated him out of millions on Times Square deal
    arrow_forward_ios

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

    Loading...