Is New York a test case for the future of small businesses?

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Small businesses across the country are struggling through a second wave of shutdowns and drop off in tourism as coronavirus cases continue to surge. Those that received Paycheck Protection Program loans are running out of the funds, and while lawmakers are negotiating another stimulus package, no additional relief has yet been granted.

To understand what the future may hold for businesses in other hard-hit areas like Florida, which has emerged as the newest hotspot, it’s helpful to look back at how the pandemic unfolded for New York City’s small firms. In a recently released Partnership for New York City report, researchers estimate that one third of the city’s 230,000 businesses that operate in commercial corridors may never reopen and the cultural, social and entertainment sectors will remain at least partially closed for the next year. 

Local businesses make up the fabric of daily life for New Yorkers, but the city is hardly unique in its reliance on small companies. In every city and community in the United States, small businesses are a collectively large employer and power the economies of the communities in which they reside. Their recovery will in turn dictate how their regions recover. Looking at current metrics, it could be an uneven recovery with some states moving faster than others. One indicator is employment, and an analysis by CNBC found that six states, including Florida and Texas, have seen a five percent dropoff in employees going back to work at small businesses. 

I’ll be going on LinkedIn News’ live show Business Unusual Wednesday at 12pm ET to discuss how small businesses in Florida are faring. You can tune into the show by following our LinkedIn page here. 

What are you seeing in your own community? How has the situation changed for your business as the pandemic has continued? 

Latest Developments

• California has shut down much of the state again, including indoor restaurants, bars that don’t serve food and movie theaters. 
• Shake Shack came under fire for receiving a Paycheck Protection Program loan and returned the money after a public outcry. Its owner, Danny Meyer, received at least $11 million in PPP funds for his restaurant empire.
• Businesses began testing their workers at the start of the pandemic but it has proven to be costly and ineffective for most. 
• Uber bought delivery startup Postmates for $2.65 million.
• Rent is coming due in just under two weeks, but what happens if a business can’t pay? CNN has a breakdown of your options. 
• Ontario entered stage three of reopening, allowing indoor restaurants to begin operating. 

Conversations For You

• Florida’s small business community is under considerable strain as coronavirus cases continue to mount across the state and tourism grinds to a halt. Owners are discussing what’s happening on the ground and how they’re faring.
• Consumer behavior has dramatically altered under the pandemic, particularly around the kind of food we eat. Farmers, ranchers and other food producers are scrambling to shift their own plans to meet these new demands and are sharing what trends they’re seeing.

Resources

• Entrepreneur Daymond John is hosting a free webinar with AARP for small business owners on July 22. Register to attend here.
• A new food delivery app has entered the market, launching in New York and boasting zero commission fees.
• Small businesses in Houston and Harris County with fewer than 30 employees can apply for a government grant of up to $25,000. Applications are due July 24.
• Oakland County in Michigan is giving out more than $28 million in grants to small firms that experienced coronavirus-related losses between March and July. 
• Shark Tank’s Kevin O’Leary has launched a newsletter answering questions about money and business.
• Small businesses in central Maine can apply for grants of up to $2,000. 

Something Good

• Madeline Swegle became the first Black woman tactical pilot.
• This baby elephant is oblivious to the doom and gloom of 2020 and living its best life chasing birds.