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Andrew Gruel, CEO of Slapfish Restaurant Group, speaks out on Governor Newsom’s call to extend California stay-at-home orders and its impact on small businesses.
Since California was stranded to mitigate the spread of COVID-19 last March, many “non-essential” businesses in the state have attempted to operate underground to try and stay out of the water.
Dozens of businesses in Los Angeles alone have been accused of violating Mayor Eric Garcetti’s “Safer Home” order.
Los Angeles City Attorney Mike Feuer has charged dozens of businesses with violations including car washes, tobacco shops, beauty stores, massage parlors, nail salons , pet groomers, and an Egyptian artifact store.
CALIFORNIA LOSES HUNDREDS OF THOUSANDS OF RESIDENTS IN 2020
The owners of a massage business in the Bay Area made the decision to reopen underground after 93 days with no income, telling Cal Matters it was about paying “the fine or we can’t pay our mortgage “.
Business owners who made the decision to go underground have turned to quiet measures to stay away from authorities.
A California groomer told Politico in November she met clients in an alleyway, then led their dog through an entrance that reads: “closed due to coronavirus.”
A tattoo artist told Politico that he only returned to the appointment in his salon and kept the lights off and the curtains drawn when working with a client.
These underground business owners don’t just have to pay fines. The mayor of Los Angeles said in a recent “Safer at Home” executive order that “individuals, businesses and properties who fail to comply with this ordinance may be subject to the Department of the Department’s shutdown of their utilities. Water and Energy. “
CALIFORNIA CORPORATE RESIDENTS TAKE THE ROAD FOR BUSINESS-FRIENDLY ALTERNATIVES
Small businesses have received government assistance.
The Treasury Department has just relaunched the paycheck protection program almost six months after funding ended. Businesses with fewer than 300 employees that have experienced a drop of at least 25% in their quarterly revenue can borrow up to $ 2 million, and loans can be canceled if 60% of the money is used for mass salary.
However, this help has only gone so far for many companies.
“That amount of money came in and covered the costs for a month,” the owner of the massage business told Cal Matters. “With the P3 loan, you had eight weeks to use those funds for payroll and utilities… It looked like I had given myself a big raise, but it kept me afloat during the months I was working. was late.
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97,966 small businesses closed permanently last year due to COVID-19, according to an economic impact report from Yelp.
Others will close as the pandemic continues to ravage 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.
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