Minority-owned businesses on Long Island struggling to access PPP loans
LONG ISLAND - Tony Barrett is exploring every finance option to keep OK Petroleum in Lindenhurst open. He’s turned to crowdfunding after he was denied for both an Economic Injury Disaster Loan and a Paycheck Protection Loan because of his credit and lack of payroll. But the business owner is encouraging others to apply in order to stay afloat.
“Local mom and pop businesses are the really the backbone of the economy,” he said.
Eric Alexander, founder of the downtown advocacy group, LI Main Street Alliance says minority-owned businesses have lower enrollment rates for the Paycheck Protection short for PPP loans through the SBA or Small Business Administration. He says there are resources available on their website to get help.
“This is a program that can be a lifeline for our small businesses,” Alexander said. “They helped our main streets.”
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As of Thursday night, the SBA has guaranteed 4.985 million PPP loans for over $519 billion with the average loan size being around $104,000. PPP is supporting over 50 million workers and over 80 percent of the small business payroll in the United States.
Dr. Denise Burton owner of Burton Professional Mediation Services, a life coaching business was denied a PPP during the first round but she is trying again.
“The banks aren’t as supportive as oftentimes you’re led to believe,” she said. “This money would help tremendously because my overhead I’m still paying for my electric bill, the rent, utilities.”
As of Friday over $125 billion remains eligible to small businesses and non-profits to access through PPP-participating lenders. The application does not require demographic information in order to be processed.
“Knowledge is always power,” Barrett said. “You have to educate everyone as much as possible and encourage them to take these loans.”
Small businesses or nonprofits can apply for a PPP loan through August 8.