As we continue to navigate these unprecedented times, KCBS Radio is getting the answers to your questions about the coronavirus pandemic. Every morning at 9:20 a.m. Monday-Friday we're doing an "Ask An Expert" segment with a focus on a different aspect of this situation each day.
Today we're taking a look at the options for small businesses and the people who work in them as more and more of them reopen up and down California with Steve Dial, CEO of Anew America, a nonprofit resource center for small businesses here in the Bay Area.
Can we start by having you sketch out what Anew America has been doing? You're not new, you've been around for a few years.
Yes, well Anew America, we're a 20-year-old nonprofit headquartered in the Bay Area. Our primary mission is to work with underserved communities to promote entrepreneurship, to move their economic lives. We also have what is called two women's business centers, and those centers are in part supported by the U.S. Small Business Administration and the Governor's Office of Business and Economic Development for the state of California. So through those offices we support businesses in terms of giving them technical assistance. And right now we've been supporting them in terms of walking through the programs for the SBA, related to COVID. In addition, connecting them with other resources and also giving them counseling as to how to proceed during this time and next steps as we all go through this.
There's a lot going on. And of course, the importance of small businesses - we tend to see the great big names on the buildings, the giant corporate titans here in the Bay Area, and we have lots of those. But can you talk for a moment about the size of the small business community and its importance?
Well, the small business community roughly in the U.S. is about 20-30 million businesses, they tend to employ over half of the employees in the U.S. They're critical to the local economy and to the community, so they're an integral part of America.
All right, let's get to the questions which have been sent in to askus@kcbsradio.com. First one says, will EDD - the Employment Development Department - automatically go into extension after the 13 weeks have exhausted? And will this additional $600 federal unemployment payment continue, or do we have to do something to file an extension?
Okay, I am going to qualify it, anyone with questions can always start with the EDD, they do have a website specifically for coronavirus FAQ. In general, the answer is yes. However, people should be aware of a couple of things. The pandemic unemployment assistance, the $600 - that was part of the CARES Act and that will impact benefits from March 29th through July 25th. So part of that end date for that $600 is tied to the CARES Act.
Next question: I want to be ready to reopen my barbershop as soon as the county gives it the go ahead, but remain unclear what steps I'll need to take inside my business to ensure proper social distance. Where can I go to find out exactly what to do so I get it right?
Okay, there are a couple of places where businesses want to go. One is covid19.ca.gov. And there, if you follow through and you look under the reopening road map, that is for the state of California. And they have a specific guide according to each industry and along with each guide is a checklist. Because each industries are different and the potential of the degree of client contact may be different from one as opposed to another. So that would be the first step, to go to that site, get the guide for your industry and the checklist for your industry and follow those steps.
The second step is to really be aware of what your county is requiring. A lot of counties have put in certain protocols or they're developing certain protocols. So those are the two entities that a business really needs to be familiar with for their type of business. What is their county requiring, but also what the state is requiring. And if the county's requiring a bit more, they need to add that to what the state is.
So that sort of leads to the next question, which was from somebody asking: do I follow the state guidelines or the county guidelines? And I think your answer's implicit there.
Exactly. The state is your basis, the county you also need to follow. For the most part, it is really important that businesses have a protocol that they communicate with their employees. What are the procedures and protocols in terms of cleaning? Also, in terms of client interaction and certain specific things that need to happen. I would just suggest that businesses right now - because we're all in different stages as to when we may be able to reopen - is that they really get familiar with using the county and state resources and get prepared now. How do I reconfigure my space? What type of PPE do I need to protect my employees? What do I need to have for our clients?
Let me ask you this just as an aside, from what you've seen out there, are there media available? Posters or stickers or flyers that are pre-printed or pre-formatted so that a business owner can not have to try to reinvent the wheel each time here?
Sure. Again, two places where people want to look for that information is they can go to their county site. They have some posters and notices that need to be displayed in terms of the masks requirements and other things like that. So I would suggest that. And at www.anewamerica.org, we have a COVID-19 page and we try to use that to connect to other sites so it's a bit easier for people to go through and connect to some of the different topics.
Once I reopen, what happens if one of my employees tests positive for COVID-19? Do we have to shut back down?
Well, you need to of course deal with that employee. You should notify the county. And in general, a deep cleaning needs to happen of that place. So you kind of do need to immediately close, have a deep cleaning done and then you will want to work with your local county in terms of when you can reopen the premises.
Is there any help from the state or federal government that I can get to deal with the loss of revenue I will experience because of social distancing and not being able to serve as many customers? In other words, they can come back into business but they won't have the kind of business they had before.
Right now there are not loans that specifically deal with those. But a couple of suggestions: right now there some different entities that are giving grants to businesses. Some are based upon where they're located, some are based upon the business owner's income. So I would suggest that business owners look and see what types of grants may be available.
The other thing is how they're leveraging some of the existing programs. So for instance, the paycheck protection program is still open, is still available. That is another access to capital that businesses can use as they plan out, "I had a business in downtown San Francisco at a restaurant, 90% of our clients worked in the vertical towers around it. Now, 70% of people are working from home, that's going to impact my business." So again it's looking at some of the resources, and also the state of California does have the state IBank, and that is a loan program that's available for those that may not be eligible for SBA lending.
Restaurants can serve indoors if they follow social distancing and all required precautions. I'm a city of Alameda resident and involved with a winery on Alameda Point. The city's hands are tied until the county health department allows wineries to open. We have provided pictures and information to the city and county showing that we can more than social distance outside. The businesses on Spirits Alley and Alameda Point are dire need of reopening to keep their business alive. We're an island, our virus numbers are very low so it's very difficult when we're grouped with the rest of Alameda County, which appears to have higher virus numbers. Any thoughts? Suggestions?
Again, we all have to defer to the county in terms of when they allow us to reopen our particular type of business. I'm in the same boat myself. I would just suggest that maybe during this time when they're not able to open is, number one, how are they maybe keeping up with their clients? Letting them know what the situation is so that when they're able to open, they can kind of have a prepared base that's ready to come back to the winery. The other thing is too, during this time, maybe see how in the interim you're able to pivot. Are you able maybe to leverage via the mail and Internet a way that you can sell bottles of wine to your clients during this time? Again, we all have to defer to the counties in terms of which businesses are able to operate. So the thing is, as a business owner, how do I, given the constraints, try to think outside the box and keep in contact with my clients and try to pivot during this time?
I own a medical marijuana dispensary. I'm not eligible for an SBA loan. Anything else available to me?
The state of California IBank. That would be an option.
I have not applied for PPP, the Paycheck Protection Program funds. Is it too late?
It is not too late, there are still funds available. Couple of the things to keep in mind is that June 30th will be the last day that the SBA will accept any approved applications. So that means that the person should be applying now because they have to apply with a participating financial institution. So I would suggest that anyone who has not applied, that they apply as soon as possible.
A friend who is an independent hairstylist received a PPP loan, then was able to get unemployment through the PUA. If they don't pay themselves through the PPP and only use a quarter of that money to pay the rent and pay the rest back, will that interfere with their PUA benefits?
I would suggest that individual person, they may want to consult with their own tax advisor. However, the biggest thing to think about is the timing of when you're getting the benefits from different sources, creating what could be construed as a windfall. Because the spirit of the CARES Act was not to create windfall situations. So you might want to look at the times, but again I would defer that they consult with their tax advisor.
I know I'm not alone: for now I'm better off with a combined state unemployment in the $600 a week special federal program. I'm dreading the call to go back to work (restaurant job) because one, I'd take a pay cut, and two, I'm just not sure how safe it would be.
Well, this may be a little hard answer, but there are a couple of things in play. Part of unemployment is that you're supposed to be looking for work. And so if you have work that is available to you, the ideal is that you're supposed to take it. Understanding the concerns in terms of going back into the office, especially those who have to deal with client contact, but if the office or the restaurant is open and is following state protocols, OSHA, any county guidelines - the ideal is that the employer on their side is doing everything they can to ensure a safe work environment. But the key word is ensure, because this is a pandemic and there are a lot of questions. There are no fool proof messages. But the thing is, is the employer doing the best effort? And then it can kind of get to the point where that employee may need to decide, is this the type of work environment that I want to continue in? Or should I be looking for another type of environment? So it's a hard question. It's a hard question on both sides.
My retail business employed several part time people over the age of 65. I'm worried about their health, but I don't want to be in trouble for age discrimination if I cut their hours or keep them away. Any advice?
Well, there are a couple of different things. First of all, for the most part, the stay at home order is also still in effect for those who are at risk, whether it's due to health conditions or age. However, if they are able from the stay at home order to go to an environment that is safe, then the employer really wants to look at, how can I make this workplace safe for all my employees regardless of their age? But also in the training prior to opening, that all employees really understand certain protocols that must be followed. But also, there are still risks involved and again it's because, you know, there are still an amount of unknowns that we all have regarding the virus.
My hairstylist tells me she's only been approved for $167 a week under the PUA program, and she can't get any other unemployment payment of any kind. That doesn't sound right, is it?
Well, again, I would defer to the EDD. However, the way that it works is that initially the EDD was just sending out $167 just so people would have money in their pocket while they reviewed the claim. Then you have to also keep in mind that the additional $600 was for a specific time frame, from March 29 until July 25th.
So I would just suggest for individual cases - and I know sometimes it can be challenging - is really contact the EDD, use their website to try to get the answer. They also do have for those that are receiving benefits, you can message them through their system. So I would really, for individual cases, say that people should check with the EDD and follow up.