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. 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 back on their feet,” said Assemblymember Wallace.

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 undue unemployment benefits.

“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.”