Assembly Passes Legislation to Support Small Businesses Struggling Amid COVID Crisis

Assemblymembers Wallace, Burke, McMahon, Conrad, Rivera, and Majority Leader Peoples-Stokes announce passage of bills to provide relief from unemployment insurance increases, enact a moratorium on commercial evictions

Today, members of the Western New York Assembly delegation announced the passage of a package of bills to provide relief to small businesses that are struggling due to the COVID crisis, including relief from increases in unemployment insurance costs and a moratorium on evictions of small businesses. Members supporting the legislation include Assemblymembers Monica P. Wallace (D-Lancaster), Patrick Burke (D-South Buffalo), Karen McMahon (D-Amherst), William Conrad (D-Tonawanda), and Jonathan Rivera (D-Buffalo), and Majority Leader Crystal Peoples-Stokes (D-Buffalo).

The Assembly passed the COVID-19 Emergency Protect Our Small Business Act of 2021 (A3207), which imposes a moratorium on evictions for small businesses with less than 50 employees until May 1, 2021. The bill also stays foreclosures of small businesses with 50 or fewer employees that have 10 or fewer properties that they are renting, as well as provide protections on tax liens and negative credit reporting for small business property owners.

The package also includes a bill (A2001A) to prevent small businesses that laid off employees due to the COVID crisis from being hit with higher unemployment insurance rates. Businesses that reduced staff during the pandemic are facing steep increases in unemployment insurance rates as a result of their employees’ unemployment claims. This legislation holds businesses harmless by prohibiting COVID-related unemployment claims from being included in an employer’s experience rating charges.

“Countless businesses have been struggling to stay up to date on their rent payments because they were forced to close or reduce their operations during the pandemic,” said Assemblymember Wallace. “This legislation provides a lifeline to struggling businesses, giving them a reprieve from the financial pressures caused by COVID. This package of bills will help businesses through these difficult next few months and give them the time they need to get back on their feet.”

“Small businesses are the backbone of our local economy. Sadly, many small businesses were forced to lay off their workers or close altogether due to the financial strain caused by the pandemic,” said Majority Leader Peoples-Stokes. “We’re hopeful that this legislation will provide some relief over the next few months as many of these important businesses struggle to reopen.”

Another bill (A2355A) codifies an action taken by the Department of Labor last week, which allows workers who find part-time work to remain eligible for unemployment benefits. New York’s current unemployment insurance program reduces 25 percent of a claimant’s benefits for any work performed in a single day. Under the legislation, the claimant’s benefits would be determined by their weekly earnings, rather than the number of days that the claimant worked during the week. Changing the formula in this way will give employers the flexibility they need to rehire employees part time, without the employee forfeiting unemployment benefits unnecessarily.

“Many small businesses are hanging on by a thread. A sudden increase in unemployment insurance costs or a lack of rent relief will likely push many into insolvency,” said Assemblymember Rivera. “I’m proud to have helped pass these crucial bills so that small businesses and working families can remain financially afloat through what we hope will be the final months of the pandemic.”

“While the COVID-19 pandemic has ravaged Western New York, it has wrought great financial hardship on small businesses and working families,” said Assemblymember McMahon. “The package of legislation my colleagues and I passed today in the Assembly will provide support for businesses and the families who depend on them, allowing them to access vital resources and financial assistance as we move forward on the path to economic recovery.”

“Small businesses and workers across Western New York have suffered greatly during this global health crisis, and we need to do everything we can to help,” said Assemblymember Burke. “With this legislation, we made strides toward ensuring no one is unfairly penalized for following public health guidelines. Helping rebuild our economy while our friends and neighbors remain safe is my top priority, and I’ll keep working with local and state leaders to make that a reality.”

“As the owner of a small business, I am keenly aware of how much pain this pandemic has inflicted on our local entrepreneurs and their employees,” said Assemblymember Conrad. “Having lost revenue during the economic shutdown, they should not be facing new hurdles as they look to reopen. I was especially pleased to support the legislation that will protect small business owners from insurance rate hikes related to increases in worker unemployment claims. COVID-19 was not their fault, and it is up to us, as state lawmakers, to spare these business owners any further suffering.”