Small businesses struggle as rents come due
But some funding help is available
Richard Vuillaume’s voice cracked as he spoke by phone Tuesday about closing a store that he had operated for the past 22 years in Homer Glen.
“For this to happen to a business I know and love, it’s heartbreaking,” Vuillaume said, choked with emotion.
A sign on the door of Norman’s Cleaners in a strip mall at 143rd Street and Will Cook Road informed customers that the location in a small chain of familyowned dry cleaners was closed for good.
“Landlord has asked us to turn in keys,” the sign said. “We opted to pay our staff (and utilities) instead of landlord.”
Vuillaume’s father, Norman, started the business in 1951 in Evergreen Park. Over the past 69 years the business grew to nine dry cleaning locations throughout Orland Park, Tinley Park and Palos Township and four tuxedo rental stores branded as Norman’s Formal Wear.
Dry cleaners and other laundry services are designated as essential businesses in the governor’s stay-at-home order. Vuillaume said he recently closed all locations after employees expressed concerns about interacting with customers. He planned to reopen remaining stores on Saturday, he said, and was hoping to find new positions for his Homer Glen workers.
Stay-at-home directives amid the global coronavirus pandemic have abruptly halted business at many locations. The disruption in commerce seems to have touched off a cascading financial crunch that is rippling across the economy of the south suburbs.
Without revenue, small-business owners lack funds to pay
employees, rent, utilities, suppliers and other costs. For some, the crisis has accelerated stresses on business models that were already struggling amid changing trends.
“Dry cleaning has been going downhill since the 1990s,” Vuillaume said. “Young people rarely use it.”
His business was already stressed by the costs of complying with environmental regulations and a $300,000 eminent domain dispute with the village of Orland Park and state of Illinois, Vuillaume said.
“Our profit margins dissipated over time,” he said. “I know I’m not the only one in this position.”
A representative of Lunar Management, the company listed on property tax records as owner of the
property where Vuillaume leased space, did not immediately respond Tuesday to a request for comment.
With commercial rents due at the first of the month, an untold number of small-business owners find themselves unable to pay. Others are able to continue with modified services, hoping the public health crisis abates soon so that “normal” operations may resume.
“It just shows how fragile our economy really is,” said Alan Cromwell, who co-owns Blue Island Beer Company with Bryan Shimkos. “We’re left scrambling.”
The brewery at 13357 Olde Western Ave., in Blue Island began operations five years ago, Cromwell said. The stay-at-home order prohibits them from opening the taproom where customers gathered to enjoy live music and signature brews like 5 Bridges and Massive Political
Corruption.
“We’re allowed to do curbside pickups” of products in cans and containers known as growlers, Cromwell said. Loyal customers support the business, but no one knows when it will be safe to once again venture out and gather in public groups.
“We don’t know how deep the hole is going to be,” Cromwell said. “That level of uncertainty is stressful.”
Various federal, state, county and municipal financial resources are available to help small businesses. Whether the funds are sufficient and distributed in time to help operators survive the crisis remains to be seen.
The $2.2 trillion coronavirus stimulus bill includes $350 billion in loans for companies with 500 or fewer employees. The federal government will provide eight weeks of cash assistance through
loans to cover payroll, rent and other expenses, much of which would be forgiven if the company retains workers.
The Illinois Department of Commerce and Economic Opportunity said it has redirected $14 million in funds intended for job training, tourism and other purposes to create the Hospitality Emergency Grant Program. However, the deadline to apply is 5 p.m. Wednesday, April 1.
Eligible businesses that apply will be chosen by lottery. Bars and restaurants that generated up to $500,000 in revenue in 2019 may receive $10,000, while qualifying establishments that did between $500,000 and $1 million in business last year are eligible for $25,000 grants. Hotels that generated up to $8 million in revenue last year may be eligible for $50,000.
Cromwell said Blue Island Beer Company submitted an application for the grant program.
The state also is offering other emergency loan and incentive programs designed to help small businesses throughout Illinois. Similarly, Cook County is taking several steps intended to offer economic relief. Cook County Board President Toni Preckwinkle last week announced that tax collection deadlines would be extended and that various fines and fees would be waived during the crisis.
At the municipal level, towns are doing what they can to provide help. The village of Homer Glen last week voted to use a $150,000 budget surplus to make $10,000 no-interest loans available to independent businesses that operate in the village. Vuilluame said he was unaware of the local program.
The village of Crestwood earmarked $500,000 in funds to provide all households
in town with $100 vouchers that may be redeemed at 27 different restaurants in the community.
Small-business owners appreciate the efforts by government and support from customers. But as commercial rents come due, it is evident that those efforts won’t be enough to ensure the survival of many small businesses in the south suburbs.
On one level, the coronavirus is a grim public health catastrophe creating pain and grief for families losing loved ones.
The demise of many beloved businesses is a tragic consequence of the deadly outbreak. For entrepreneurs who have devoted their lives to building an enterprise, the end of their dreams is profoundly sad and nearly as distressing as the loss of life.