At least $1 million going to 201 Rochester employers apiece, thanks to COVID program

Rochester, N.Y. — Only opened a year, the Union Tavern had few safety nets when COVID-19 forced it to close its dining room to customers.

"We were pretty terrified when it happened," said Kelly Bush, who owns the restaurant with her husband, Don. "We weren't established, and because we couldn't show 12 months of financial security, we didn't qualify for a whole lot."

The Payroll Protection Program stepped in to cover paychecks for 15 employees and also provide a low-interest loan for other expenses. If all criteria are met, the loan does not have to be paid back.

United States lawmakers are considering an extension to the program. It comes as new information is being released about employers who received at least $1 million - including more than 200 in Rochester.

Forty-nine Rochester employers were at the top end of the PPP payout. Car dealerships, developers, manufacturers and nonprofits received between $5-$10 million. The information released does not break down the numbers any further.

PPP was criticized for giving millions to large companies such as TGI Fridays and Forbes media. Under pressure, the Small Business Administration released information about employers receiving at least $1 million.

In Rochester, that includes private schools and charter schools.

"It was intended to be broad-based because you didn't want people to go under," said U.S. Sen. Chuck Schumer, who came to Rochester to announce plans to extend PPP to cover some employers through the end of the year.

In total, 201 Rochester employers received amounts ranging from $306-$661 million. The SBA has not released information about employers receiving less than $1 million.

"The idea was to push as many dollars out to keep as many companies afloat and to keep businesses solvent," said U.S Rep. Joe Morelle. "More importantly, it was for the employee to be able to continue to receive a paycheck."

Some of those in Rochester who received PPP were approved without listing a number of employees on the application. PPP was reserved for companies with 500 employers or less.

Schumer says it's clear PPP went to some U.S. companies that should not have qualified.

"We're working to get that back and put that into only businesses with 100 people or less." he said.

The senator has proposed a new round of payroll protection called P4 to help businesses with 100 employees or less through the end of the year. It is only for small businesses and excludes publicly-traded companies. It's part of the COVID bill that lands before the Senate in the next two weeks.