By Sam Riley

As the COVID-19 pandemic continues, and people are asked to practice social distancing and stay in their homes unless it’s necessary to leave, many small businesses in Richmond and throughout the nation are feeling the effects. With the virus still spreading around the country, economic woes aren’t likely to go away soon. 

In America, small businesses are a massive part of the economy, providing 47.5% of private-sector employment. And their contribution to the GDP was 5.9 trillion dollars in 2014. This essential part of the American economy is now getting much less traffic. This leads to employees getting fired, furloughed, or laid off, which recently had 10 million Americans registering for unemployment in March. Not only is there less retail traffic, but supply chains are getting disrupted by countries in Asia that many businesses got their products from. This is all very large scale, but the Richmond community and Virginia as a whole are being affected too. 

On March 23, Governor Ralph Northam (D) released a statement with information regarding businesses in Virginia. Places such as theaters, fitness centers, barbershops, bowling alleys, and many other recreational or entertainment centers were to be closed. Dining and on-site alcohol establishments are closing at 11:59 p.m. but are still able to provide delivery or take out services.

Retail businesses are being labeled as essential or non-essential. The essential stores, such as grocery stores, are to stay open and adhere as best as they can to social distancing recommendations. The brick and mortar businesses not listed as essential are open but not allowed to have more than ten customers in the store at a time, and if the business can’t adhere to the ten-customer rule, it must close. This mandate is helping us stay safe through the pandemic, but places like Stuffy’s, for example, a small restaurant that many Collegiate students frequent, has had to lay off all of its employees, as the owner told me recently when my mother and I picked up some food.

The ten-customer rule is hurting many independent stores and restaurants around Carytown and other shopping districts. The Richmond Restaurant Group, co-owned by Collegiate parent Michelle Williams, has also closed down a number of its restaurants, such as The Hard Shell Bellgrade, West Coast Provisions, and The Daily. The group has put out a statement on how to help the restaurants and their employees, saying that the purchase of gift cards and donations to a GoFundme for employees are the best courses of action. 

This situation is new and unprecedented, but there many things are being done to help this large part of the American economy. The U.S. Senate recently passed a 2 trillion dollar relief bill to help businesses weather the oncoming storm. $377 billion dollars of the bill is meant to aid small businesses, and $504 billion dollars are going to large businesses. The bill provided small businesses with zero-interest loans, tax breaks, and other subsidies. These generous zero-interest loans will be provided to companies with 500 employees or less and are able to be forgiven if the company complies with certain conditions. The loans will convert to grants if used for paying employee salaries, rent, paid leave, utility payments, health insurance premiums or other benefits. While the initial funds in the Small Business Administration’s (SBA) program quickly ran out last week, Congress is looking for additional funding. These new policies will hopefully help small businesses bounce back from this crisis. 

Once the viral outbreak ends, small businesses will hopefully be able to thrive again, with investment from federal, state, and local government, as well as the return of loyal customers.

Featured image courtesy of ISTOCK/Getty Images Plus.