USA TODAY International Edition
Small firms emerge from COVID- 19 crisis
Jessica Larios’ baby arrived a few weeks before her due date at the end of February.
The owner of Bella’s Event – an event planning business in Yonkers, New York, specializing in rentals and sales of all things party- related – Larios could not afford to take time off during one of the busiest months for bookings.
In a haze of feedings and caring for the baby, Larios plowed through her work. Less than a month later, things ground to a halt as the coronavirus pandemic took hold – and cancellations poured in.
“I was so worried I was not going to be able to make rent and would have to shut down my business,” which she opened in 2014, she said.
She thought of reaching out to the women from the Acceleration Project, a nonprofit business consulting firm that helped her with bookkeeping and merchandise sorting last summer.
Consultants from TAP strategized with Larios on how best to approach and negotiate with her landlord.
“That was very helpful. My landlord actually cut my rent by half for six months,” she said. “They have also been keeping me informed about all the protections available for small businesses.”
The Acceleration Project was founded in 2012 to help small businesses that were dealing with the aftermath of the economic recession and increased competition from online shopping. Seventy- five percent of the businesses it serves are women- owned, and 33% are minority- owned.
Jane Veron, CEO and co- founder of TAP, made up of all female consultants, said there has been a high demand for their services in the past two months.
In a haze of feedings and caring for the baby, Larios plowed through her work.
Since March, TAP consultants have supported small businesses with free emergency services addressing their immediate decisions calculating payroll costs, identifying ways to negotiate expenses and providing guidance on Small Business Administration loans and forgiveness programs. They’ve assisted almost 50 small businesses, a mix of past and new clients.
Initially, the most pressing needs were all around government loan information and assistance, said Nancy Rosenberg, COO of TAP.
“We quickly dug in and got up to speed on the PPP ( Paycheck Protection Program) and other loan opportunities and were constantly fielding questions like: Which loans should I apply for? How much money should I request? Should I furlough my employees? How can I use the loan proceeds if my business has been forced to close? Will my loan be forgiven?” she said.
Congress established the small- business- focused P PP as part of the $ 2.2 trillion Coronavirus Aid, Relief and Economic Security Act. Businesses with fewer than 500 workers can secure low- interest loans of up to $ 10 million. The loan will be fully forgiven if the funds are used for payroll costs, interest on mortgages, rent and utilities ( at least 75% of the forgiven amount must have been used for payroll). Loan payments will be deferred for six months.
Of the businesses that applied for the loan, about 66.7% received the money, according to the Census Bureau. For businesses who used TAP’s expertise, the numbers have been better. “About 83% of our clients that applied for the PPP eventually received the funds they had requested,” Rosenberg said.
Larios, the owner of Bella’s Event, plans on shifting her focus to online sales and is setting up a website. For now, she'll double down on balloons and table and chair rentals.
“I think it’s going to be two years before we have events with 100 people or more. But I think people will be having backyard parties and summer barbecues,” she said. “People want to feel happy. I think balloons and decorations are going to be popular.”