Waiting game
A classic bicycle is displayed in front of the Encore shop in Woodstock Village.
Whether it comes from the state or the federal level, businesses throughout the country now await the financial assistance they applied for, while some are struggling to get into the pipeline. On the other end, government workers are rushing to deal with an ever-increasing tsunami of applications, as COVID-19’s financial impact deepens.
For Karim Houry and Isabelle Chicoine, who own the Woodstocker Bed and Breakfast in Woodstock, Vermont, the consistent and responsive communication from state and local officials has been a great help during this tough time. Houry, whose B&B has been closed since March 16, recently applied to one of the Small Business Administration programs for assistance. When he called to check on his application this week, he found the three-day wait for the funding had become three weeks.
“It’s a little bit of a waiting game and there is some anxiety involved, but we understand that they’re having to do all this very quickly,” Houry said.
He recommended that officials keep being responsive, which has been a big reassurance.
“The fact they are trying to help, trying to move things forward, being responsive, is helping me a lot,” Houry said. He also said Mascoma Bank and the Vermont Economic Development Authority have been very helpful.
Meanwhile, Houry said the business continues its Wednesday-Sunday breakfast-to-go offering with curb-side pick-up - which keeps the couple busy and also provides a service for the community. Additionally, after the March closure and amid a wave of cancellations for March and April, two-thirds of guests who cancelled opted to convert the money for their reservations into gift certificates, which was a big help for cash flow, Houry said.
State Rep. Charlie Kimbell, who represents Woodstock, Reading and Plymouth, said he’s heard from a variety of industries feeling the financial pressure of the crisis. Now, the biggest concerns he hears from businesses are self-employed people wondering when they can get unemployment insurance (now allowed-for by the CARES Act); if they can get relief from having to pay rent; and if there are any grants available to them for relief, instead of loans.
The crisis hit a number of businesses at a time when funds were thin.
"A lot of small businesses were barely hanging on anyway," Kimbell said.
The federal government has now allowed self-employed people to file for unemployment benefits, which puts more heat on a strained labor department. Kimbell said Wednesday the Vermont Department of Labor has received about 60,000 unemployment claims so far. The labor department's online operation is running on 30-year-old software, he said, adding the department was working on a major upgrade to the system when the crisis struck.
Windsor County Sen. Alison Clarkson, of Woodstock, said the state is facing a $200 million revenue shortfall in the current fiscal year, due to the crisis. A major issue is how to provide relief to Vermonters with the coffers low.
"You can’t have relief without revenue," Clarkson said, adding that the state doesn't have the capacity to borrow the money.
Meanwhile, various forms of assistance for businesses are available. The SBA is offering a $10,000 advance on an Economic Injury Disaster Loan, and that advance can be converted into a grant. There is also a paycheck protection program available.
Some local programs have also been rolled out, including a Business Relief Fund set up by the Woodstock Economic Development Commission. Those funds are dispersed as 12-month, no-interest loans up to $1,000, with no principal repayment required during the loan period. The funds are available to Woodstock-based businesses including nonprofits and self-employed entities who serve the Woodstock community. So far, the new program has dispersed $24,600 in funds to 25 businesses.
EDC Chair Jon Spector said the commission is preparing an online survey to local business owners and residents, asking how the EDC can best support the business community at this time of need. He also said the EDC will discuss what the commission’s priorities should be when Woodstock emerges from this crisis, and the EDC will look to the community for input.
At this point, thanks to business advocates and our elected officials, a veritable ton of information is available about financial relief, and there will never cease to be questions. The complexities of this situation are vast, and we should also thank local banks and lenders for their hard work in implementing new programs to help.
At this point, the roll-out of the federal assistance is key for many business owners and individuals. Many people across the country are in the middle of a difficult waiting game, to be sure. Still, many are also confident our local communities will press on amid these unprecedented times. That we will. We have that strength, and we’ll reach the “other side” by supporting each other.
— Gareth Henderson
