The worldwide COVID-19 pandemic is putting a stranglehold on many area businesses, and entities serving as their advocates are working on ways to get them the relief they need.
The Franklin County Community Development Corporation and Franklin County Chamber of Commerce are using their resources to assist business owners negatively affected by constraints imposed to try to contain the spread of COVID-19.
Though businesses deemed essential — such as grocery stores and liquor stores — have remained in full force, restrictions applied by Gov. Charlie Baker have pinched places like restaurants, which are limited to delivery and takeout service until April 7, as well as barber shops and nail salons.
Massachusetts set up a $10 million loan program to help small businesses and Lt. Gov. Karyn Polito announced Friday it will double the fund after it had to stop accepting applications due to being overrun with requests in about 36 hours.
John Waite, executive director of the Franklin County Community Development Corporation, said the U.S. Small Business Association is also offering emergency loans, though he feels few local businesses will benefit from these.
Waite said the development corporation is trying to secure grant money to give to local companies because loans only put people into further debt. He said he and others are also considering starting a donation fund. He mentioned he, Montague Town Administrator Steve Ellis and MJ Adams, Greenfield’s director of community and economic development, have expressed interest in acquiring Community Development Block Grant money (often used for housing and infrastructure projects) for local businesses.
“There’s a bunch of things in the works,” Waite said.
Meanwhile, the Massachusetts Association of Community Development Corporations is calling upon the state to make available $150 million in loans, grants and technical assistance to help small businesses get through the public health crisis. The association is also requesting the creation of a Massachusetts COVID-19 Small Business Response Task Force to guide the ongoing response; expanded unemployment insurance criteria to cover ineligible business owners, such as sole proprietors, independent contractors and microbusinesses; a short-term eviction moratorium; and at least $25 million in emergency funding to help affected tenants pay their rent.
The association would like for much of the small business development assistance to be deployed through the network of community-based organizations already working with the state through the Small Business Technical Assistance program.
Waite said he knows of several restaurants that have closed because owners were losing money each day due to labor costs associated with takeout orders and no dine-in service. Though he has heard people say many businesses will “go under” due to the coronavirus situation, he is not so sure, as most small businesses are used to operating on tight budgets and getting creative.
Waite said he is confident business will start booming when restrictions are lifted.
“Then, it’s up to consumers,” he said.
Diana Szynal, who has been the executive director Franklin County Chamber of Commerce for nearly a year and a half, said the chamber has put a link on its website (franklincc.org) to help its nearly 500 members find the resources and programs they need to ride out this storm.
“I certainly think that the local economy is strong enough to weather this, particularly if it doesn’t last too long,” she said.
When she spoke with the Greenfield Recorder, Szynal said she had just gotten off the phone with the owner of a small business who had to shut down for an estimated two to three months, with hopes of surviving off savings until income can again be generated.
“I think that a lot of businesses are trying to do that,” Szynal said. “I hear a lot of resiliency in the voices of the business owners I speak to and the people that I speak to. Everyone is ready to dive back into these businesses when we can do that. As soon as we can, we’re there. I think some businesses are sort of comforted by that.”
Reach Domenic Poli at: dpoli@recorder.com or 413-772-0261, ext. 262.