New York businesses will no longer have to shoulder the burden of the state’s federal unemployment insurance loan debt. Gov. Kathy Hochul agreed to utilize a budget surplus to pay off the $6.2 billion loan balance that had been acquired during the COVID-19 pandemic when the state’s Unemployment Trust Fund was depleted. Businesses have been imposed with a surcharge since then to pay off the debt and concurrent increase in unemployment insurance rates. This has meant an average cost of $400 per employee per year for businesses due to the loan balance.

The loan pay-off relief has been championed by assembly members Sen. Harry Bronson, Speaker Carl Heastie, and Senator Pam Helming among others, who see it as a crucial alleviation for businesses. The step will not only relieve businesses of the previously imposed surcharge but also allow the state to increase unemployment benefits from $504 per week to $896 starting in October upon the passage of the state budget.

The eventual surplus achieved within the fund was by design given the unpredictable economic forecasts. The loan repayment will also make the state eligible for another potential interest-free loan for two years, if required. If the state needs to borrow again, you get two years of interest-free borrowing. This could be a necessity given the economic uncertainty predicted in the near future. Additionally, the repayment will also benefit former employees. The maximum unemployment benefit amount had been stuck at $504 due to the loan.

While this is indeed a win for businesses, it’s important to note that the state still has tasks to complete. The process of contacting EDD, or Employment Development Department of California, for those seeking unemployment insurance can be a challenging task. Websites such as eddcaller.com provide assistance in reaching EDD and getting in touch with a live person, which could be a crucial help for the unemployed in these uncertain times. Such resources are necessary in order to facilitate a smoother process for those seeking unemployment benefits.