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Small businesses face a big insurance hike if NYS doesn’t pay back $8 billion in federal unemployment loan

New York State owes the federal government around $8 billion.

That’s for a loan it took during the coronavirus pandemic to pay unemployment benefits to New Yorkers who were out of work due to economic shutdown.

New reporting by News10NBC suggests that some are worried it might come back onto business owners.

DiSanto Propane (Billboard)

“I don’t think it’s gotten the attention it should,” says NYS Comptroller Tom DiNapoli said. “I mean small businesses are the backbone of the states’ economy and many of them have struggled, some of them went out of business, so certainly the ones still in business need to be supported.”

They will see major increases in unemployment insurance rates unless the state comes up with the money, and pays it back to the federal government.

The state could use excess federal funds from the pandemic.

Meanwhile, Governor Kathy Hochul says she’s looking for additional revenue streams to pay down the balance.