Editorial: Pandemic survival challenges Marin businesses
It’s not much of a surprise that our local economy has been rocked by a year of pandemic public health lockdowns.
For instance, think of those businesses — formal wear purveyors, caterers, rental firms and other businesses — that rely on weddings, proms and other such gatherings. The spread of COVID-19 essentially sidelined them, costing them a year of business.
What about restaurants that had to get by relying on takeout business — still only a fraction of the business that they had hoped to do during 2020?
There are many others, as reflected in the survey completed by Keep Marin Working.
The council polled 1,200 Marin business owners to see how they have weathered this crisis.
In brief, more than 75% of those businesses that responded said they have lost income and are worried about their economic stability.
More than two-thirds said they had to tap their personal savings to keep their business afloat.
That’s worrisome for the local economy, those owners and, importantly, their employees.
About 9% said they had been forced to close temporarily. And 1% closed for good. More than 35% said their business revenue had been slashed by more than half.
That’s a huge hit and an especially hard one during economic times when there are far fewer options to bounce back.
Many also said, moving forward, they have to downsize and 1% planned to leave the county.
More than a third of the businesses responding said they face growing debt to endure the pandemic’s lockdowns. That is worrisome as the community strives for some semblance of marketplace stability.
Just about half said they were able to receive federal, state or local pandemic-relief grants.
Taking measures to help these businesses ward off bankruptcies or to stay open needs to be a local priority. Leaders of local municipalities across our county realize how much their budgets rely on the property and sales taxes generated by local businesses. Landlords and storeowners understand the price they pay when workers lose their jobs and the paychecks they need to pay their rent or are forced to severely pare their shopping.
It was appropriate for many Marin towns to provide local businesses with grants, in order to help them shoulder the past year’s losses and, in many cases, shift their business models to pickup or takeout business.
Keeping those businesses alive is vital to our communities.
The lightening of the lockdown in recent weeks is still clouded with uncertainty.
While progress in getting more people vaccinated and promises that lockdown restrictions will be lifted in June are hopeful signs, many businesses recall last year’s roller coaster when restrictions were lessened for a few weeks before they were retightened.
They also don’t know how inclined their customers will be to return to normal shopping patterns. How long will it take for everything to get back to normal?
Those are questions businesses face as they make decisions about rehiring workers or stocking their shelves.
“The anxiety is still there and the uncertainty is still there,” says Joanne Webster, CEO of the San Rafael Chamber of Commerce and a member of Keep Marin Working.
Some are having trouble hiring workers, as likely many of those laid off due to the lockdown have found new jobs. Or, understandably, some in the workforce are not sure it’s safe for them to return to their jobs.
The survey’s findings provide a reflection of the toll the pandemic is taking on our communities and the local economy.
Now is the time for the county and cities to put some energy into rebuilding their local economies, suspending or postponing costly municipal fees, helping local businesses rebound from severe losses and helping those businesses put people back to work.
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