NY COVID Rent and Small Business Relief: $3.5 Billion

Author: Governor Andrew M. Cuomo
Published: 28 May 2021 - Updated: 7 Sep 2026
Publication Details: Peer-Reviewed | Announcement

Table of Contents:
Synopsis - Definition - Overview - FAQs - Insights, Updates - Related Content

Synopsis

This report details $3.5 billion in emergency assistance announced for New Yorkers struggling with pandemic-related financial hardship, including $2.7 billion in rental assistance and $800 million in small business recovery grants. The rental program covers up to 12 months of past-due rent, 3 months of prospective assistance, and utility arrears for households earning at or below 80 percent of area median income, with tenant protections including waived late fees and eviction protections for one year.

The small business component offers flexible grants up to $50,000 for operating expenses, prioritizing minority and women-owned enterprises, service-disabled veteran businesses, and economically distressed communities. Because this peer-reviewed announcement was authored by state leadership and targets populations disproportionately affected by economic crisis - including disabled individuals, seniors, and low-income renters - it serves as an authoritative resource for understanding the scope and mechanics of critical relief infrastructure. The program's emphasis on multilingual outreach, technical assistance, and partnerships with community organizations makes this information particularly useful for navigating complex application processes.*

At a Glance

1 - Applications for rental aid opened June 1, and small business grants opened June 10. Both programs accepted eligible New Yorkers impacted by the pandemic.
2 - Landlords must waive late fees and agree not to evict tenants for one year to receive payment. These protections shielded renters from housing instability.
3 - The rental program accepted applicants regardless of immigration status and expected to serve 170,000 to 200,000 households. It included up to 12 months of utility arrears.
4 - Grants covered expenses incurred between March 1, 2020, and April 1, 2021, including payroll, PPE, and HVAC costs. Education materials and applications were offered in 12 languages besides English.

Topic Definition

New York State Emergency Rental Assistance Program: The New York State Emergency Rental Assistance Program is a state-run relief effort administered by the Office of Temporary and Disability Assistance that helps renters who fell behind on their housing payments because of financial hardship tied to the COVID-19 pandemic. Funded largely through federal resources alongside state dollars, the program pays landlords directly on behalf of qualifying tenants, covering up to twelve months of past-due rent, several months of forward-looking assistance, and outstanding utility bills for households earning at or below 80 percent of the area median income. Beyond the money itself, it builds in tenant safeguards, requiring participating landlords to waive late fees and hold off on rent increases or evictions for a year, which makes it as much a housing stability measure as a financial one.

Overview

Governor Andrew M. Cuomo has announced $3.5 billion in assistance for renters and small businesses experiencing financial hardship as a result of the COVID-19 pandemic. The rental assistance program makes up to $2.7 billion in emergency rental assistance available for struggling New Yorkers impacted by the COVID-19 pandemic.

Applications for the program will be accepted starting June 1 for eligible New Yorkers who are behind on their rent and have suffered financial hardship due to COVID-19. Administered by the state Office of Temporary and Disability Assistance, the New York State Emergency Rental Assistance Program will provide assistance with up to 12 months of past-due rent, 3 months of prospective rental assistance and 12 months of utility arrears payments to eligible New Yorkers, regardless of immigration status. The program is expected to serve between 170,000 and 200,000 households.

The small business recovery grant program makes up to $800 million in funding available for small businesses to help them recover from the economic impact of the pandemic. Applications for the program will be accepted starting June 10 for small and micro businesses and small for-profit independent arts and cultural organizations to help them recover from the economic impact of the pandemic. Flexible grants up to $50,000 will be made available to eligible small businesses and can be used for operating expenses, including payroll, rent or mortgage payments, taxes, utilities, personal protective equipment, or other business expenses incurred during the pandemic. Over 330,000 small and micro businesses are potentially eligible for this program, including 57 percent of the State's certified MWBEs.

Governor Cuomo also announced that starting Tuesday, May 25, 2021, phase two of the Reimagine, Rebuild, Renew campaign will launch to make small businesses and residents who have been financially impacted by the pandemic aware of the many relief and recovery programs that are available in New York State. Print ads will run in local community newspapers across the state and social media ads will be featured on Facebook and Linked in with additional digital video ads advertised across the Internet.

"New Yorkers and small businesses in every corner of the State were devastated by the pandemic, and as we continue to recover and rebuild we need to make sure they have the resources they need to get back on their feet and succeed in a new, re-imagined economy," Governor Cuomo said.

"This critical funding will help ensure New Yorkers who are experiencing financial hardship through no fault of their own will not be thrown onto the streets, while also providing stability for small businesses, so they can help play a role in New York's economic resurgence."

Rental Assistance Program

The rental assistance program will assist households behind on their rent and that have experienced financial hardship, that are at risk of homelessness or housing instability, and that earn at or below 80 percent of area median income.

During the first 30 days, the program will prioritize the unemployed, those with income at or below 50 percent of area median income and other vulnerable populations. After the first 30 days, applications will be processed on a first-come, first-served basis, as long as funds remain available.

Once approved, eligible households will receive up to 12 months of past due rent. Those eligible could also receive up to 3 months of additional rental assistance, if the household spends 30 percent or more of its gross monthly income on rent. The program also will provide up to 12 months of utility arrears for eligible applicants.

In addition to fiscal relief, ERAP will provide significant tenant protections. To receive assistance, the landlord must agree to waive any late fees due on past-due rent, and not increase the tenant's monthly rent or evict them for one year, except in limited circumstances.

The program is funded by $2.6 billion in federal resources and $100 million of state funding and is structured to help the state and the local governments that received funds directly from the federal government to collaborate and coordinate their efforts, thereby leveraging resources, gaining efficiencies and preventing fraud.

OTDA is organizing an unprecedented effort to establish partnerships with local governments across the state to ensure that community-based organizations will provide outreach and direct application assistance in multiple languages to potential recipients. This effort will mobilize substantial resources to ensure tenants from across the state are aware of ERAP and able to apply.

In addition, the agency will undertake fraud prevention efforts to identify unreported income and to prevent duplicate rental payments.

Seven communities that received funding for emergency rental assistance directly from the federal government opted to administer their programs. Residents of the City of Rochester and Monroe County, the City of Yonkers, Onondaga County and the towns of Hempstead, Islip and Oyster Bay must apply with their local programs for emergency rental assistance and are ineligible for assistance from the state-administered Emergency Rental Assistance Program. The $2.7 billion program includes the $168 million provided directly to these localities.

Small Business Recovery Grant Program

The small business recovery grant program will provide funding to small and micro businesses and small for-profit independent arts and cultural organizations to help them recover from the economic impact of the pandemic, with priority being given to socially and economically disadvantaged business owners, including minority and women-owned business enterprises, service-disabled veteran-owned businesses and veteran-owned businesses, and businesses located in economically distressed communities.

Grants will be for a minimum award of $5,000 and a maximum award of $50,000 and will be calculated based on a New York State business' annual gross receipts for 2019. Reimbursable COVID-19 related expenses must have been incurred between March 1, 2020, and April 1, 2021, and can include:

Utility costs
Payroll costs
Insurance costs
Other machinery or equipment costs
Payment of local property or school taxes
Heating, ventilation and air conditioning (HVAC) costs
Commercial rent or mortgage payments for NYS-based property
Supplies and materials necessary for compliance with COVID-19 health and safety protocols
Costs of personal protection equipment (PPE) necessary to protect worker and consumer health and safety

ESD has created a website to highlight the various resources available to support small businesses seeking pandemic relief. The website will be continuously updated as more details and funding information as it becomes available.

The ESD Board of Directors approved $10 million in technical assistance grants for New York's statewide Entrepreneurship Assistance Centers and Small Business Development Centers to help small businesses and for-profit independent arts and cultural organizations secure COVID-related financial assistance and grants available through existing state and federal programs.

This network of service providers will work directly with small businesses, guiding them through available funding sources and helping them navigate the application process. Recognizing that pandemic-induced economic hardship has disproportionately affected micro and small businesses, and that application processes can be difficult to navigate - especially due to a language barrier - the partners will use these funds to hire or contract more staff for one-on-one, direct counseling services.

Education materials and applications will be offered in 12 languages in addition to English.

This support, along with increased technical assistance staffing, will position these providers to better assist businesses and organizations in applying for funding through the New York State's COVID-19 Pandemic Small Business Recovery Grant Program, the federal American Rescue Plan Act of 2021, or any other available federal economic recovery program, catalyzing our state and local economies as more businesses and communities reopen.

Frequently Asked Questions

NOTE: Researched FAQs by Disabled World (DW)

Who administers the New York Emergency Rental Assistance Program

The program is administered by the New York State Office of Temporary and Disability Assistance, which works with local governments and community organizations to process applications and deliver payments.

Do renters need legal immigration status to qualify

No, eligible New Yorkers can apply regardless of immigration status, and their information is used only to determine eligibility for the rental assistance program.

Are payments sent to the tenant or the landlord

Payments are made directly to the landlord on behalf of the approved tenant to cover past-due rent, prospective rent, and utility arrears.

Which local areas run their own separate rental programs

Residents of Rochester, Monroe County, Yonkers, Onondaga County, and the towns of Hempstead, Islip, and Oyster Bay must apply through their own local programs rather than the state program.

What is the minimum small business recovery grant amount

The small business recovery grant program provides a minimum award of 5,000 dollars and a maximum award of 50,000 dollars, calculated using the business annual gross receipts for 2019.

Can arts and cultural organizations apply for the grants

Yes, small for-profit independent arts and cultural organizations are eligible to apply for the small business recovery grant program alongside small and micro businesses.

What was the Reimagine Rebuild Renew campaign

It was a statewide outreach campaign using print, social media, and digital video ads to make residents and small businesses aware of the relief and recovery programs available across New York.

How does the program prevent fraud and duplicate payments

The agency undertakes fraud prevention efforts to identify unreported income and coordinates with local governments to prevent duplicate rental payments across programs.

Insights, Analysis, and Developments

Editorial Note: The scale and structure of these assistance programs illustrate a crucial policy response to pandemic-driven economic displacement, yet the historical record shows that such interventions require robust implementation and sustained funding to reach their intended beneficiaries. As rental instability and small business insolvency continue to threaten housing security and economic participation across income levels, the mechanisms outlined here - particularly the priority given to vulnerable populations and the investment in language-accessible technical assistance - offer lessons about what equitable crisis relief can look like, even as subsequent funding gaps have underscored the ongoing need for sustained commitment to economic security.*

Attribution/Source(s): This peer reviewed publication was selected for publishing by the editors of Disabled World (DW) due to its relevance to the disability community. Originally authored by Governor Andrew M. Cuomo and published on 28 May 2021, this content may have been edited for style, clarity, or brevity.

* Editorial additions by Ian C. Langtree.