Irma deals uneven blow to local small businesses
For the owners of Colonial Photo & Hobby, being closed for four days because of Hurricane Irma power outages was a couple days too long.
Two days would be like a holiday weekend. Four days makes a significant dent in monthly revenue. The business, at 634 N. Mills Ave., had closed Sunday as Irma arrived, and the lack of power kept it closed until Thursday morning.
“We probably will file a claim for (private) business-interruption insurance,” owner Mike Rausch said, as he and his staff sweated it out in the shop on Wednesday. They tried to help a few customers who dropped by, but they couldn’t open fully without power.
Spotty power in Orlando’s commercial areas resulted in a cruel roulette effect for small business owners. Only a block north of Colonial Photo, several businesses had power restored after just two days. Some, such as grocery and convenience stores, saw an immediate return of brisk business.
“Our businesses are concerned about the loss of three of four days of revenue — especially since almost all here are small, independent, locally owned,” said Joanne Grant, executive director of Mills 50 Main Street District. She was trying to help those businesses that opened by promoting them on social media and encouraging customers to return.
However, three Mills 50 businesses were still without power Thursday and were told it would be restored by 10 p.m., Grant said. Those were J. Bauman Salon, Florida Fitness Concepts and Bill Bennett Boot Camps. But the salon opened anyway. It posted on Facebook, “We are OPEN TODAY! No blow-dries and only cold water!”
At East End Market in the Audubon Park neighborhood, several small businesses saw their shops closed through Wednesday.
Three vendors put up tents outside to maintain some business before the marketplace reopened Thursday morning.
“We’re definitely feeling the impact of Irma,” said Tammy Dehler, working at Porch Therapy plant and gift sales.
“It's gonna take the merchants a little while to get back up to speed but we're all looking forward to seeing you,” East End Market posted on Facebook on Thursday. “Stay tuned and thank you all so much for your support as we get the market back up and humming.”
Other merchants expect consumer spending on non-essential items could be slow for weeks.
Paul McManus, a technician with Colonial Photo & Hobby, said he’s weathered several storms that took a bite out of local business revenue.
“It takes a few weeks for people to spend more normally again after something like this,” McManus said.
Disaster assistance from the Small Business Administration is available, in the form of low-interest loans, for the Orlando metro area. Businesses and private nonprofit organizations of any size may borrow up to $2 million to repair or replace disaster-damaged or destroyed real estate, machinery and equipment, inventory, and other business assets. Additional loans may be available for 20 percent of verified damage to buildings or equipment, or for such things as a safe room or storm shelter for future disasters.
Interest-free loans are now available from the state Department of Economic Opportunity (DEO), up to $25,000, which have to be repaid in 90 to 180 days. The Florida Small Business Emergency Bridge Loan Program is for small businesses that experienced physical or economic damage during the storm. Businesses have until Oct. 31 to apply at www.floridadisasterloan.org.
For other working capital needs stemming from the hurricane, the SBA also offers Economic Injury Disaster Loans — regardless of whether the business suffered any physical property damage.
Disaster loans up to $200,000 are available to homeowners to repair or replace disaster-damaged or destroyed real estate. Depending on financial condition of the company, interest rates are as low as 3.3 percent for businesses and 2.5 percent for nonprofit organizations, 1.75 percent for homeowners and renters with terms up to 30 years.
Further north on Mills Avenue, Dong-A Supermarket reopened after power returned Tuesday morning. Customers were buying produce and other items. The same was true for Atlantic Strings Violin Shop, which was able to open midday Tuesday.
The supermarket had to rent refrigeration trucks for two days to store perishables. The company probably will not apply for business interruption insurance, manager Kim Chau said. “Our building is OK. I’m just thankful for that and to be back in business,” Chau said.