Stony Brook University’s Faculty Student Association (FSA) received an estimated $2-5 million in bailout loans, according to data released by ProPublica.
ProPublica, an independent nonprofit organization that releases investigative reports and statistics, has kept track of all bailout loans made in the United States during the COVID-19 crisis as part of the Paycheck Protection Program (PPP). Nearly $659 billion in government support was approved in order to support small businesses and companies impacted by the pandemic.
Compared to other State University of New York (SUNY) institutions listed, Stony Brook’s FSA received one of the largest loans, alongside Upstate Medical and SUNY Morrisville. Millions were also poured into “university faculty practice corporations,” all of which funded various medical practices.
According to Section 1412 of NY State Law, these corporations are organizations that offer professional medical services through accredited schools. Stony Brook Psychiatric Associates, Anesthesiology Associates, Emergency Physicians, Radiology Associates, Surgical Associates and Associates in Obstetrics and Gynecology all received $1-2 million in PPP loans.
A loan of $2-$5 million was also given to Stony Brook Internists, who are involved in Internal Medicine in Advanced Specialty Care. This area covers primary care, endocrinology and infectious diseases, among others. In total, Stony Brook University’s academic and research institutions, hospital and clinic received between $14-33 million in PPP loans. This reportedly retained 1,651 jobs. Loans were primarily offered through the Bank of America.
The only other SUNY school to receive a loan range near this amount is Upstate Medical University, which received, including medical service departments, between $5-$14 million. Other SUNY institutions, such as Nassau and Suffolk Community Colleges, received up to $1 million.
To offset COVID-19 costs, Stony Brook University has made cuts to budget and salaries, implemented a hiring freeze and pulled out over half of their $80 million reserve fund. For the fall semester, remote learning accounts for more than 80% of class registrations and campus residency is operating at about half its usual capacity.
Stony Brook University is not alone. Colleges and universities across the United States have gone remote for the Fall 2020 semester amid COVID-19 concerns, and New York K-12 schools are faced with 20% cuts to state funding as a result of a $14.5 billion deficit.
Sounds like these loans are because of the medical practices, and thus shouldn’t be expected to be used to fund the undergraduate/graduate university…