As the shutdown drags on, New York officials fear that half the city’s smallest businesses are going to fail. Restaurants, bars, shops and salons will become boarded-up storefronts. Neighborhoods will feel like ghost towns.
It’s a grim prospect, yet officials seem ready to let it happen. Gem Spa in the East Village, known since the 1920s for its egg creams, is shutting for good, and the Strand, the iconic book store, says it may also.
Gov. Andrew Cuomo hasn’t indicated when the city will reopen as part of his multiphase reopening plan. Mayor Bill de Blasio hinted on Monday that the process might start sometime in June, but in recent days he has also said reopening is “a few months away at minimum.”
The city’s small-business commissioner said: “I don’t think the New York that we left will be back for some years.” He added: “I don’t know if we’ll ever get it back.”
New Yorkers don’t deserve such defeatism. Owners have invested their savings and decades of their lives to build these businesses. People with secure government jobs and paychecks don’t get that.
Small businesses are generally cash-strapped. On average, they can ride out two months’ worth of expenses, according to the Harvard Business Review. The shutdown in New York began March 22. Thus, when Cuomo and de Blasio moved the goal posts to sometime in June, they doomed many businesses to die.
The new federal Paycheck Protection Program provides eight weeks’ of funding for small businesses to pay employees and meet other overhead expenses. Again, not indefinite help. And only 20 percent of New York’s small businesses qualified for the PPP loans to begin with, according to the New York Federal Reserve.
Looking at the benchmarks Cuomo says a region must meet before reopening, Nassau County Executive Laura Curran estimates that Long Island will meet them at the end of June — too late for many businesses. “My concern,” she admits, “is our economy is not going to be able to hang on.”
Across the nation, small businesses are hanging on by a thread. Some are fighting back. In Castle Rock, Colo., a breakfast restaurant opened up for Mother’s Day brunch; 500 people showed up. The owners said they did it to bring in cash — but also to make a statement about freedom. The state shut them down again.
Here on the Upper East Side, Eliot Rabin defiantly opened his tiny tailor’s shop, with masks and hand sanitizer on hand for customers. People are smart enough to decide for themselves whether or not to go shopping.
In Pennsylvania, Michigan, Wisconsin and Louisiana, GOP state lawmakers are challenging lockdowns, warning that businesses and neighborhoods are on the brink of destruction. But in New York, a one-party state, there is no political voice challenging Cuomo’s shutdown.