Keep New York Running during COVID-19: Support the Businesses that Support New York

banner_image

Be there for us, so we can be there for you:

We are a collective of industrial businesses that keep New Yorkers moving, working, and thriving. We support the city’s functioning through times of prosperity, and times of crisis.

We fabricate components of the subway system that move healthcare workers to their jobs. We manufacture ventilators that save New Yorker’s lives, 3D print and sew the personal protective equipment keeping our healthcare, delivery, and supply chain, and other essential service workers safe. We produce baked goods that provide us joy in these hard times, and we repair, drive, and deliver your ecommerce products to you. We produce and transmit the energy that keeps your lights on, and allows you to work from home. We recycle your discards to save the city money and not overwhelm the solid waste system.

We, along with countless others, keep this city running, and without additional financial support, our time is running out.

We are calling on our elected officials and government leaders to help us through this crisis, so that we can keep serving New Yorkers and Americans, as we have been doing for decades.

Why additional Covid-19 business relief is urgently needed:

Industrial Businesses are particularly vulnerable to closure:

  • As of March 27th, 90% of us who were surveyed estimated we did not have enough cash to with stand a downturn of longer than 3 months
  • In the same survey, nearly 50% of our industrial business responded that they will not have enough cash to withstand the next 4 weeks

Industrial Companies play a critical role in maintaining the city’s supply chain and critical infrastructure:

  • Our existing capacity and infrastructure are currently being relied on during the COVID-19 crisis to provide production, storage, handling, and distribution of food, energy, PPE and medical supplies, and the collection and processing of waste and recyclable materials
  • The maintenance of critical physical infrastructure, safety equipment, and other essential services can only be provided by our industrial companies
  • We are developing, prototyping and providing new critical items from hand sanitizer, medical gowns, face shields and ventilators to overcome the shortages from overseas suppliers

Industrial Businesses are Ladders of Opportunity:

  • Many industrial jobs are accessible to people without college degrees or other credentials and provide an average salary of nearly $60,000 per year
  • 19% of our industrial businesses are certified minority and/or women-owned business enterprises (MWBEs)
  • Industrial Businesses in NYC make-up 7.8% of the city’s private sector workforce

Current Financial Products Don’t Meet the Need:

  • When surveyed at the beginning of the non-essential closures, our businesses estimated that we would need, on average, $153,000 in order to cover operational overhead costs
  • We presumed that this crisis would be short-lived. If surveyed today, that number could be significantly higher
  • The NYC Small Business Continuity Loan Fund offers a maximum of $75,000 and is no longer accepting applications. It is unclear how many of us will even have access to this limited resource
  • The NYC Employee Retention Grant available to only businesses with under 5 employees represented a $10 million fund that has already been closed. The grant awarded 1,200 businesses an average of $7,800
  • The SBA Paycheck Protection Program is in its second round of funding with a total of $660 billion allotted between rounds one and two. There are several issues associated with this fund: smaller lenders do not have the liquidity to participate, larger banks are only working with pre-existing clients, the funds for round one ran out in 13 days and round two isn’t projected to last for that much longer, and only a small share of New York State businesses, 18%, were able to receive funding from round one

Policy 1: Additional Government emergency activation support for the manufacturers and suppliers of essential goods and services

  • Fast-Action funding to pivot our operations to produce essential PPE equipment and other goods and services.
  • Forgivable loans to those of us who are performing essential services, which can allow us to offer additional incentive or hazard pay for our employees.
  • Grant funding must be extended to essential businesses to cover the costs of ensuring the safety of our workspaces, including the costs of personal protective equipment for our employees, sanitization of the workspace, and any costs related to the enforcement of physical distancing.

Policy 2: The City of New York should provide resources in order to lower lender risk for the Paycheck Protection Program and increase program access for industrial businesses

  • The City should allocate funds to local NYC lenders who have a large portfolio of industrial businesses  and are able to take on new industrial clients.
  • The funds should provide lenders financial reimbursements per loan made to an industrial business, in order to help cover lender’s administrative costs incurred by lack of their ability to charge fees or interest rates if the loan is forgiven.

Policy 3: Create CDFI bridge loan for industrial businesses contracted to provide critical infrastructure services to the City, State, or Federal Government

  • Some of our industrial companies must remain open due to either City, State or Federal agency requirements to keep critical infrastructure operational, but our operating expenses are not covered given limitations on businesses.
  • Critical infrastructure includes things such as: medical supplies and equipment, transportation equipment, emergency response and safety equipment, energy equipment and utility infrastructure, food supply chain, and waste removal and processing.
  • To be accessible quickly, we recommend that the bridge loan not require a personal guarantee, instead require business collateral. Furthermore, there should be no employee limit and the loans should range between $100,000 – $200,000.
  • New York State and the City of New York should match CDFI contributions.

Support Policy Recommendations!

Only Business Name & Borough will be displayed publicly, all other information will be kept private.

SUPPORTING COMPANIES
1 company has signed
  • Percepted
    Queens
THE ORGANIZING COLLECTIVE
  • Adam Friedman, Executive Director
    Pratt Center for Community Development
  • Ben Margolis, Executive Director
    Southwest Brooklyn Industrial Development Corporation
  • Elizabeth Lusskin, President
    Long Island City Partnership
  • Fred DiGiovanni, Chairman
    West Shore Industrial Business Improvement District
  • Joanna Reynolds
    Programs & Partnerships, Made in NYC
  • Kinda Younes, Executive Director
    ITAC
  • Leah Archibald, Executive Director
    Evergreen Exchange
  • Lourdes Zapata, CEO
    SoBRO
  • Steven Grillo, First Vice-President
    Staten Island Economic Development Corporation