Neuse News

View Original

Kinston small business owners question survival

Kristy Kelly

The Queen Street redesign completed a few months ago and was designed to bolster the economy in the heart of our community. Now, because of COVID-19, that economy is in peril.

See this content in the original post

Balancing public safety and the economy is a growing concern for small business owners who want to reopen the community safely without falling victim to debt.

Steve Lovick, owner of Lovick’s Café in Kinston, has seen a reduction of 50% in sales since the onslaught of COVID-19. Lovick has maintained his workforce with reduced hours while waiting for the Paycheck Protection program (PPP).

“We were promised a bill of goods for protection and it was not delivered,” said Lovick.

Hairmporium Salon owner Shamika Hall-Williams did not have the same ability to keep her five stylists and two barbers working. When the governor executed the Stay-At-Home order, Hall-Williams had to temporarily shut her salon.

See this content in the original post

“On March 23rd, my heart dropped and shattered when the governor gave the executive order, and we had to close,” said Hall-Williams.

Her first thought was her staff, understanding their situations and then the fear of her own bills that would be due. Hall-Williams owns Hairmporium debt-free but applied for the PPP and the Economic Injury Disaster Loan (EIDL) but hasn’t heard back from either program.

As a self-proprietor, Potter Photography owner Brandon Potter applied for the EIDL loan through the Small Business Association even though a loan was not ideal. He has yet to receive confirmation that the application has been reviewed, let alone approved or denied.

“Whether your business has been forced to shut down, or whether you are allowed to be open, but business has declined considerably, bills are still due,” said Potter.

While Potter didn’t have any trouble with the application process, Lovick found the people working with the application process to be untrained and unfamiliar with the process. His paperwork has been returned twice with the same issue. The application process is easy to complete but there is no verification of a received application and has been known to time out.

The Small Business Administration (SBA) rolled out the PPP in late March and is a loan designed to provide a direct incentive for small businesses to keep their workers on the payroll. The SBA may forgive a portion of the loan if all employees are kept on the payroll for eight weeks and the money is used for payroll, rent, mortgage interest, or utilities.

According to the SBA website, small business owners in all U.S. states, Washington D.C., and territories may be eligible to apply for an EIDL up to $2,000,000 because of the COVID-19 disaster. The loan is made by the SBA directly and a $10,000 advance on the loan can be requested as well. This loan advance will not have to be repaid. Small business owners can apply at the SBA website.

However, the SBA is currently unable to accept new applications for the Paycheck Protection Program based on available appropriations funding.

“Going months and months with little or no income while still having to pay operating expenses is a death sentence to the true small businesses of America,” said Potter.

If businesses are not offered the opportunity to receive the loans promised to them at every level of the government, they will be forced to take drastic measures up to and including closing. Residents can support the local businesses in their area by ordering online, buying gift certificates to use when indoor retail is once again available, and sharing their posts on social media to spread the word of their services.

“I am hoping that all our neighbors can withstand and hold on and keep Kinston a viable option for visitors and travelers for shopping and visiting our eateries,” said Lovick.

See this content in the original post

RESOURCES