Kevin Masaro’s small business in Gainesville received $ 1,007 in federal financial aid amid the pandemic that helped him finance the payroll in May 2020.
“We can use every dollar,” said Masaro, 27, a co-founder of Always True Co., a clothing and lifestyle brand. “So it was good for us at the time because we had a payroll to cover.”
Masaro said that many companies around him were helped during the pandemic through borrowing or other assistance, but he also said they could always use more.
Small business owners across the country are taking advantage of the recently announced extended term for PPP loans. On February 22, President Joe Biden announced a change in Small Business Administration (SBA) coronavirus relief programs in an effort to secure equity for the country’s smallest companies.
A primary objective of this two-week window was to allow companies with fewer than 20 employees to access financial aid that they might not have previously obtained. The window opened on February 24 and closes on March 10. After that period, the loans will be available to all companies until March 31.
Alyssa Brown, vice president of public policy for the Greater Gainesville Chamber of Commerce, said that in the first rounds of PPP loans, 3,700 companies in Alachua County received them, totaling about $ 267 million in financing and helping to save thousands of people. jobs.
“We are not out of the woods, but I think the first two rounds were definitely useful for companies,” she said.
Brown said she is excited to see that the latest round of financing is being focused specifically on the needs of small businesses that were potentially left out in the first two rounds.
Cathy Norman, 55, owner of Intuitive Design Clothing, an online boutique for men and women, said that being online during the pandemic has been a blessing.
“With people not being able to go out and shop in malls and in different places like that, people are sitting at their computers,” she said. “So I think it has really been good for business for me, because people are looking online.”
Norman said that she can look at the loans this time, but she hasn’t looked before because she prefers to keep her business alone. She said she could have benefited from the application, but she didn’t want to be stuck with anything.
“Anything for my business comes straight out of my pocket, so I know I worked hard for it,” she said. “I had a few donors, a family member and a close friend, but that was it.”
Norman’s company was created to operate through an online market at the beginning of the pandemic. Other companies were not ready and had difficulty adjusting.
Chuck Sapp, 60, owner of Paddiwhack, a furniture store and craft gallery in Gainesville, said his company has struggled due to the transition to online shopping during the pandemic.
The business is having to downsize and move from Northwest 13th Street to Northwest 16th Ave. Sapp said this is mainly due to changes in purchasing trends and the effects of the pandemic.
“I just received a customer who said, ‘Well, we looked for him on the Internet, we went to Dillard’s and they didn’t have them in stock, so we called you,'” he said. “We were their third choice. And yet, we had it in stock at a lower price than online or from Dillard. “
Sapp applied for the first round of PPP loans, but for him, the amount of money offered was small compared to the overall expenses of his business, so he did not pursue it.
Instead, Sapp received an Economic Injury Disaster Loan from the SBA, which he said was to help sustain the business during the recession.
“This was a $ 30,000 SBA loan that was offered in the beginning and that basically covered most of our employees’ expenses during the COVID shutdown and afterwards,” he said.
“We invested everything back in the business, of course I now have to pay in the next five years, with a low interest rate, but I have to pay,” he said.
Sapp expressed concern about applying for a PPP loan again.
“If we are going to have all this bureaucracy that we have to skip and get only 10% of what we need, it is not worth it,” he said.
However, Sapp said that this will not stop him from looking at the latest round of financing.
“Let’s take a look at this and if it is something that we would qualify for six-month expenses, we would probably apply,” he said.
The funding formula for the program has been updated to allow individual owners, independent contractors and self-employed individuals to have access to more funding. The update also removed restrictions for individuals with crimes unrelated to fraud, as well as immigrants legally residing in the country. People with student loan defaults can now also participate in the program.
Acting SBA Regional Administrator Janita Stewart oversees operations in the Southeast, including Florida, Alabama, Georgia, Kentucky, Mississippi, North Carolina, South Carolina and Tennessee. Stewart said companies can apply for a loan by contacting participating lenders, the SBA or small business development centers for help applying for a loan.
Stewart said the purpose of the stock plan is to target companies that are in underserved markets.
“Minority companies, women-owned companies, veteran companies and businesses in rural areas, they are not really in the group,” she said. “So this period of time that the Biden government has chosen really allows them to come to the table and link up with a credit institution to provide them with the relief they need.”
In addition to PPP loans, a small business can apply for SBA debt relief, express bridge loans or the COVID-19 Economic Damage Disaster Loan. Management is also preparing to launch a new aid program aimed at the venue for live events. The program is called Concessions for Operators of Closed Locations.
Raina Harter, 39, owns the FreeRide Surf and Skate Shop with her husband Peter Harter. The two took over the deal in October, but the opening during the pandemic seemed to work in their favor, said Raina Harter.
“We are practically new since COVID and we are doing well,” she said. “So I prefer that the money go to another business that really needs it.”
Raina Harter said she believes the business is doing well because her store sells products for outdoor activities.
“If anything positive came from COVID, it’s that people are doing a lot more outside,” she said. “I would say that the biggest increase in customers for us was women. So many girls are starting to skate. “
Harter talked to her accountant about applying for a PPP loan, however, they decided not to, since they have no employees.
“Basically, we won’t have employees this year, and my husband and I don’t get paid,” she said.
Sapp said he thinks the pandemic would not have hit local businesses as hard if people focused on local purchases.
“The best thing that can help small businesses is if the local community really thinks about shopping locally and shopping locally,” he said.
Norman said he thinks community members need to support each other more locally.
Harter agreed.
“I feel that another positive aspect of COVID is that it made people realize the importance of supporting local businesses,” she said. “We are the people who live in your community, and the taxes you pay us, like sales tax, go to our community.”