Local Business Owners Stress Over Federal/State Relief

Local Business Owners Stress Over Federal/State Relief

Slurp Ramen in Port Jefferson has set up a unique means of serving customers, with a large screen in between workers and patrons. Photo by Kyle Barr

Local business owners are looking at an uncertain future due to the ongoing COVID-19 crisis here on Long Island.

Due to Gov. Andrew Cuomo’s (D) executive order that shut down nonessential businesses last Saturday in an effort to prevent the spread of coronavirus, entrepreneurs and others are worried if they will be able to survive the financial blow. With bills due at the beginning of the month and with no new income coming in, many are calling on the state and the federal government for help.

Indu Kaur, the director of operations of The Meadow Club, looks at blueprints of new the building in Port Jefferson Station. Photo by Kyle Barr

On Tuesday, Congress and the President Donald Trump (R) administration finally reached a $2 trillion agreement to assist people during the ongoing crisis. The new bill includes one-time direct payments to residents of $1,200 per adult making up to $75,000 a year or $2,400 to a married couple making up to $150,000, with $500 payments per child. It also includes a $367 billion program for small businesses to keep making payroll while workers are forced to stay home. Meanwhile, for larger industries the bill includes $500 billion for guaranteed, subsidized loans to bail them out as revenue has severely dropped.

Still, the question remains of how small local businesses will remain intact or even be able to open their doors again as the crisis ebbs.

Indu Kaur, director of operations of The Meadow Club in Port Jefferson Station, said, “This is a burden my father and I are trying to figure out, just like everyone else,”

A family of restaurateurs who recently took over The Harbor Grill had plans to open their third restaurant this month. In addition, The Meadow Club was set to reopen after being closed due to a fire in 2018. Kaur said the ongoing health crisis has put both openings on hold.

In the meantime, she said, The Curry Club in East Setauket is taking take-out and delivery orders.

“We had to lay off our staff,” she said. “There are still things like rent, insurance and utility bills that we have to worry about.”

When asked about the recent virus rescue bil from the federal government, Kaur said “it was great news and a good first step. “Many of us are suffering financially right now.”

She also said she is hopefully that Suffolk County can eventually do something similar to help business owners.

Currently, the U.S. Small Business Administration is offering economic injury disaster loans to affected businesses. Funds come directly from the U.S. Department of the Treasury and the maximum unsecured loan amount is $25,000.

Kaur said she doesn’t think that is a viable option for her and other business owners.

“I’m not sure we can take out one more loan on what we already have,” she said. “For others there might be no other option.”

Last week, Suffolk County Executive Steve Bellone (D) announced the launch of the Business Recovery Unit, a component of the county’s Business Response Plan, to address concerns and questions that businesses have amid the coronavirus outbreak. Businesses are asked to complete a comprehensive survey on the county’s website (www.suffolkcountyny.gov).

In a conference call March 23, Bellone said that, with several hundred surveys completed, over 4,000 workers were indicated as laid off or furloughed.

“We keep getting calls and the numbers are going up; we are getting calls from workers who are self-employed who are in the same boat,” Bellone said.

In the new federal relief package, furloughed workers will have their salaries replaced for four months, getting whatever amount the state provides in unemployment plus a $600 add-on per week. Gig workers such as Uber drivers are included in that as well.

“There are still things like rent, insurance and utility bills that we have to worry about.”

Indu Kaur

In an effort to help business owners, New York State Republicans sent Cuomo a COVID-19 action plan that includes extending the payments of monthly sales tax by 90 days, making available no-interest loans immediately to entities that face a dramatic decrease in business and eliminating penalties for late payments of business and property taxes, among other things.

Similarly, over 17,600  people signed a Change.org petition titled Save Small Business Before It’s Too Late. It also called on the city, state and federal governments to take the necessary steps to save local businesses.

“Small businesses are the backbone of our communities, creating jobs, generating tax revenue and providing valuable services,” said New York City Councilman Mark Gjonaj (D), who started the petition.

Lenore Paprocky, president of the Greater Middle Country Chamber of Commerce, said, while a lot of businesses are hurting, she is grateful how everyone is willing to come together and help fellow entrepreneurs.

“It’s difficult right now but we want to keep these businesses afloat,” she said.

The chamber has come up with a list of local businesses that are offering catering/takeout and automotive services.

Paprocky said they are trying to stay optimistic amid the ongoing shutdown, and she hopes elected officials can hash something out to help them.

“The future is uncertain, but we need to stay positive and work together to get through this,” the president of the chamber said.