Andrew Gruel, CEO of Slapfish Restaurant Group, dares to call Gov. Newsom to extend stay-at-home orders in California and its impact on small businesses.
Since California was shut down in the air last year to mitigate the spread of COVID-19, many of the state’s “non-essential” businesses have taken advantage of their chances of trying to stay underwater.
Dozens of businesses in Los Angeles alone are charged with violating Mayor Eric Garcetti’s order, ‘Safer at Home’.
Los Angeles attorney Mike Feuer has charged dozens of businesses with violations, including laundries, tobacco shops, beauty supply stores, massage parlors, nail salons, pet groomers and an Egyptian art store.
CALIFORNIA LOST HUNDREDS OF THOUSAND THOUSANDS IN 2020
The owners of one Bay Massage business decided to reopen underground after 93 days without any income, telling Cal Matters that it amounted to paying ‘the fine or that we could not pay our mortgage’.
Business owners who have decided to go underground have resorted to discreet measures to stay off the radar of the government.
A pet groomer in California told Politico in November she was meeting customers in a back street and leading their dog through an entrance that was ringing due to a coronavirus.
A tattoo artist told Politico that he only returned to his salon, keeping the lights and curtains drawn when working with a client.
It is not just fines that these underground business owners are experiencing. The mayor of Los Angeles said in a recent ‘Safer at Home’ decision that ‘individuals, businesses and properties that do not comply with this order may be subject to the exclusion of their utilities by the Department of Water and Power. . ‘
CALIFORNIA CORPORATE RESIDENTS TAKE THE ROAD FOR FRIENDLY ALTERNATIVES
Small businesses have received government assistance.
The Department of Treasury has only revived the salary protection program for almost half a year after the funding was first terminated. Businesses with less than 300 employees that have had at least a 25% drop in quarterly revenue can borrow up to $ 2 million, and the loans can be forgiven if 60% of the money is used for payroll.
However, for many businesses, this help has gone just as far.
“The amount of money came in and covered the cost of one month,” the owner of the massage business told Cal Matters. ‘With the PPP loan, you had eight weeks to use the funds for payroll and utilities … It seemed like I gave myself a big raise, but it just kept me afloat for the months I was behind. ‘
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97,966 small businesses were permanently closed last year due to COVID-19, according to a report on Yelp’s economic impact.
More will close if the pandemic continues to devastate California and the rest of the country. California recorded 22,972 new cases and 593 deaths on Friday, bringing the state’s total to more than 3 million cases and 36,361 deaths.
The Associated Press contributed to this report.