Small biz suffer in virus-hit New York
AS New York becomes the epicenter of the coronavirus outbreak in the United States, even die-hard businesses are shutting down in the so-called “city that never sleeps.”
The losses add to the economic toll from the crisis in the US, which is fighting the largest coronavirus outbreak anywhere, causing a record spike in unemployment claims and posing special risks for small businesses.
Biscuits & Bath, a dog daycare and boarding company, announced Friday that it will temporarily shut down and lay off most of its remaining employees.“We believe this is the best and only way to keep everyone safe,” Biscuits & Bath owner Scott Smith said in a letter to clients.
Gaetano Arnone, executive chef at Otto Enoteca, briefly revamped the restaurant into a delivery-only operation before pulling the plug.
“Last night we did $400,” Arnone said by telephone Friday. “It’s just not enough to keep everyone employed and safe.”
The two companies are emblematic of the small and medium-sized businesses that are considered most at risk as officials in New York City and other jurisdictions shutter economic activity in an effort to try to limit the deadly contagion.
The crisis has fundamentally transformed business conditions for just about every US company, darkening Apple’s stores, halting auto production at General Motors factories and fueling massive demand for grocers, e-commerce delivery services and companies that manufacture toilet paper and hand sanitizer.
But non-public companies are viewed as an especially vulnerable node in the American economy because they typically lack the access to capital of bigger outfits.
The $2 trillion relief bill signed into law Friday boosts unemployment compensation and provides $350 billion in forgivable loans to cover small business payroll and overhead, including the rehiring of laid-off workers.