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Syracuse businesses may receive up to $25,000 in loans from the city

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Keeping employees on payroll is just one of the financial needs SEDCO looks for in approving loan applications.

By Sarah Alessandrinisenior staff writer

After J. Michael Shoes temporarily closed amid the coronavirus pandemic, John Vavalo, president of the company, applied for a loan from the city of Syracuse.

The Syracuse Economic Development Corporation on March 19 dedicated $500,000 in zero-percent interest, 180-day emergency loans to support small businesses in Syracuse struggling from statewide social distancing measures. Businesses can receive a loan of up to $25,000.

Vavalo doesn’t know how much his loan will be, or whether it will help the Marshall Street shoe store. He said he hopes to use the money to cover expenses such as rent and employee payroll while the business is closed.

“We want to keep our full-timers,” Vavalo said in an email.

New York Gov. Andrew Cuomo on Sunday ordered all nonessential businesses to remain closed until at least April 15 as the state prepares for the height of the coronavirus outbreak. The novel coronavirus causes COVID-19, a respiratory disease that has infected 66,497 people in New York state and killed 1,218.



The SEDCO program is intended to provide immediate short-term assistance for businesses that have temporarily closed or moved to take-out only service, said Eric Ennis, director of business development for the city of Syracuse.

“We’re trying to help businesses that may be trying to change their business model and looking to innovate,” Ennis said.

Applications for the loans became available March 23, Ennis said. Some small business owners near Syracuse University told The Daily Orange that they’re considering applying for the loans, while others said they’re unsure of what the aid entails.

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Steve Morris, co-founder of Mello Velo Bike Shop & Cafe, said his cafe has transitioned from dine-in to take-out service. He said he’s looking into applying for a loan to potentially cover upcoming payments.

The average loan given to a local business will total $10,000, Ennis said. This amount wouldn’t be enough to cover Morris’ company’s payroll or rent for an extensive period of time, he said, but the loans may be sufficient for other local businesses.

“It really depends on what you’re using it for. We owe a lot more than that for certain things,” Morris said. “But everyone’s conditions are so different that it could be a drop in the bucket for some people, or it could be more than enough.”

While the bike shop portion of the business currently remains open, Morris said the loan would be especially helpful if he’s forced to close for an indefinite period of time.

“I certainly think it’s gonna help a lot of people,” Morris said. “It’s good that they’re doing it.”

Mike Theiss, general manager of Manny’s on Marshall Street, thinks there isn’t enough information on the loans to know whether they’ll be effective.

“There are so many things that the government is doing, it will take a while to digest what is available for our business,” Theiss said in an email.

Dino Centra, owner of Westcott Florist, said she hasn’t applied for the loans but is planning on doing so. Recess Coffee in Westcott declined to comment, stating it didn’t yet know enough about the loans.

SEDCO’s goal is to support as many small businesses as possible with the $500,000 grant, Ennis said. Although the loans are zero-percent interest for about six months, SEDCO is willing to extend that period if a business needs more time to pay the city back, he said.

Business owners can apply for the loans online and should receive a response within a week, Ennis said. A committee made up of members from the SEDCO board of directors reviews the applications weekly.

“We’re trying to move as quickly as we can to get dollars into small businesses’ hands,” Ennis said. “We’re trying to help the business community here at large.”





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