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Your link talks about the market which has ups and downs. This thread specifically talks about businesses in NY going out of business because of high costs such as taxes, rents, wages, etc. Two separate things.
Not necessarily, as the country was likely headed for a recession. In turn, you see businesses fall off due to that. This pandemic just accelerated things for those on the brink.
I do think many of the 100k survive a shorter lockdown, as they would have had some revenue.
No revenue 2 plus months is asking them to close permanently.
The business I took over in April of last year was established but abandoned by the first owner because he ran out of money. The second owners only lasted 3 months before infighting broke up the partnership and they weren't making enough money. We took over a damaged business and in less than a year we turned it around. We made money 4 out of the last 5 months. Since my partner and I have other businesses and day jobs we put 99% of every dollar made back into the business. On March 1st we are talking about having a big 1 year anniversary party in April with customer appreciation specials etc...
Here is where we are today. We have been shut down since March 16th. The rent is $11,330 a month. With payroll I need about $18,500 to break even. Let's just say $19,000 to be on the save side. I have a landlord who told me flat out he can't be held up for 4 months' rent and expects to be paid. I paid March's rent and half of April's rent. I told him unless he is willing to work with me on deferring rent and lowering my monthly rent 30% I can't see us surviving. I paid my vendors and utilities through May and I am nearly out of money.
I can't continue to tap into other resources because I can't justify taking money away from my other businesses or myself personally because I am the only one making any type of income due to my other business being considered an essential business and my chick has been furloughed and hasn't received anything from unemployment.
I applied for the PPP through a bank called funding circle during the first round, because my Bank Victory State Bank, a bank that is supposed to cater to Small business (yeah right) wasn't offering the program. We were denied and told we did not meet the criteria. The second round begins. Victory finally gets themselves in gear and offers PPP. This is now around April 15th. One month shut down. I fill out the PPP app. I get approved within a week for $9800, plus a $3000 grant for the EIDL. The EIDL goes to the SBA. I only wind up with 10% of what we were approved for of the PPP. The reason I was given in writing was that since the demand for the PPP is so high the government wants to make sure every business gets some money. The solution is cutting down the approved amount by 90%. Which really does nothing for me. They are making me pick and choose who to bring back to work. BTW, fun fact. None of my employees want to come back. All they would be doing is sitting around. It's easier for me to save on electricity and send them partial checks every 2 weeks for the next 6 weeks. Which by the way no one wanted because they are collecting more on unemployment. these are part-time workers. They are receiving more than they ever made working for me.
For the past 2 1/2 months I am waiting in the SBA. 3 weeks ago I received an email that we were in line, but agriculture had jumped ahead of everyone and they would get to us when they get to us. Fast forward to this past Friday, May 22nd. My business partner calls me and tells me the SBA denied our loan. The email is dated April 28th. Why is it dated April 28th?? It states and I quote " We haven't sustained enough economic hard to warrant a load from the SBA."
I am tied into phase 4 and kids going back to school. Our doors are shut for 2 1/2 months and I am basically broke. How much ****ing more economic harm do I have to sustain before I am eligible for a God Dammed SBA load!?
Oh, and to make matters worse. This will most likely be the final nail in the coffin. We are part of a Franchise based out of California. The Founder of the Franchise says "Governor Cuomo is adored around the world." They have offered us no help what's so ever but they keep insisting we do things that cost us more money. all 80 franchise locations in the lower 48 were insured by the same insurance company. Each location had its own policy. The insurance company informed us that they are exiting the market and we won't be renewed come July. The insurance Broker that the franchise uses has washed their hands of looking for a new carrier in NYC because NY is impossible to deal with. So now we are twisting in the wind and I have several brokers trying to find us a new carrier at a reasonable price.
This is just a small part of what small businesses in NYC/NYS deal with on a regular basis. How are we supposed to survive when the deck is stacked so high against us? This city and state are not Small Business friendly. My other companies are service industry's that have federal regulations and are easier to deal with than NYC and NYS.
We will appeal to the SBA decision. But if I am being 100% honest I think it's done. Between my partner and myself we have invested $187,000 into this business and if we are closed until September we will be at least another $50,000 in debt with no way of climbing out of that hole. I know for a fact we are not the only ones out there going through this. I think the businesses that were established for many years that saw the writing on the wall that decided to close permanently made the right choices. They made their money and wanted to hold on to some of it. They opened in a different climate when small business was the backbone of the country. Now, that phrase is just a meaningless talking point in states like NY and NJ.
So many times during this crisis I have said how lucky I am to be healthy and have an income. which is wonderful. I am so lucky that I am properly going to go bankrupt and lose a lot of money that took me quite a few years to earn. In a weird way I am at peace with that because I know being self-employed and business owner in any way shape or form is a risk in itself. I understand that risk and took it anyway. I ahve been fortunate that I have had mild to moderate success over those years. I have been self-employed for over 20 years. Even during those 20 years of being self-employed, I would hedge and take small jobs here and there in my field that paid ok or offered health insurance just as a fallback. I survived 2008 and came out stronger with no government assistance while other companies died.
What I can't accept is that the government ordered me to shut for the good of the population to flatten the curve and then left me twisting in the wind at the local, state, and federal levels and has effectively ruined a thriving business that contributed to society.
Rant over.
Last edited by Hammer Time; 05-23-2020 at 11:16 PM..
Not necessarily, as the country was likely headed for a recession. In turn, you see businesses fall off due to that. This pandemic just accelerated things for those on the brink.
I don't know why you think a recession was going to happen now or anytime soon. The economy was booming. There were 4 million jobs that needed to be filled. Unemployment was around 2.9%. It was the greatest economy of our lifetime and not only was it sustaining itself, but it was also expanding. Yes, the country was likely heading towards a recession someday in the distant future.
That post I have no doubt is a microcosm of this region. I must admit as someone in Finance who understands how fixed costs cripple businesses w/o revenue, given your detailed statement, I'd advise you and all those affected to permanently close their businesses, if impacted even 25% as much as yours was.
People are improperly falling for the spiel of "these job losses are not permanent" and they are largely wrong on that front.
I fear the next few years will make the Great Recession seem like a walk in the park, at least for the tri-state region.
That post I have no doubt is a microcosm of this region. I must admit as someone in Finance who understands how fixed costs cripple businesses w/o revenue, given your detailed statement, I'd advise you and all those affected to permanently close their businesses, if impacted even 25% as much as yours was.
People are improperly falling for the spiel of "these job losses are not permanent" and they are largely wrong on that front.
I fear the next few years will make the Great Recession seem like a walk in the park, at least for the tri-state region.
Bob, being 100% honest I can't see how we will be expected to survive when our capacity is 100 people and we may only be allowed 10 people in at a time for 1 hour only. 1 hour open, 30 minutes closed to deep clean. Which being the industry we are in that caters to children we were fanatical about cleaning and sanitizing. I would dust window edges, hard surfaces and Swiffer walls if I saw dust, or thought there was dust. Our building is only 3 years old and overall still pretty clean. Even with no activity in the place the dust is minimal. I worked in McDonald's for a couple of years when I was in Highschool. They trained me properly in the art of sanitizing. I borrowed their motto if there is time to lean, there is time to clean and applied it to this business. I appreciate your input.
Property taxes are paid quarterly. 7/1 is the next due date. A lot of landlords may not be able to pay.
That's basically right around the corner. I definitely don't see how landlords will have enough by then. 4th of July is absolutely going to be wrecked.
That's basically right around the corner. I definitely don't see how landlords will have enough by then. 4th of July is absolutely going to be wrecked.
The city will most likely extend those due dates. The sales tax due date was pushed back until July 20th.
Not necessarily, as the country was likely headed for a recession. In turn, you see businesses fall off due to that. This pandemic just accelerated things for those on the brink.
Ugh, for the final time, NYS and NYC has its own problems outside of the national economy. Obviously the national economy effects everyone but specifically NY problems are endemic only to NY and they are, as I’ve mentioned, have to do with the high costs such as taxes, rents and wages.
Even before the virus when the rest of the country’s economy was booming, NYC businesses were starting to shutter and or move out.
The business I took over in April of last year was established but abandoned by the first owner because he ran out of money. The second owners only lasted 3 months before infighting broke up the partnership and they weren't making enough money. We took over a damaged business and in less than a year we turned it around. We made money 4 out of the last 5 months. Since my partner and I have other businesses and day jobs we put 99% of every dollar made back into the business. On March 1st we are talking about having a big 1 year anniversary party in April with customer appreciation specials etc...
Here is where we are today. We have been shut down since March 16th. The rent is $11,330 a month. With payroll I need about $18,500 to break even. Let's just say $19,000 to be on the save side. I have a landlord who told me flat out he can't be held up for 4 months' rent and expects to be paid. I paid March's rent and half of April's rent. I told him unless he is willing to work with me on deferring rent and lowering my monthly rent 30% I can't see us surviving. I paid my vendors and utilities through May and I am nearly out of money.
I can't continue to tap into other resources because I can't justify taking money away from my other businesses or myself personally because I am the only one making any type of income due to my other business being considered an essential business and my chick has been furloughed and hasn't received anything from unemployment.
I applied for the PPP through a bank called funding circle during the first round, because my Bank Victory State Bank, a bank that is supposed to cater to Small business (yeah right) wasn't offering the program. We were denied and told we did not meet the criteria. The second round begins. Victory finally gets themselves in gear and offers PPP. This is now around April 15th. One month shut down. I fill out the PPP app. I get approved within a week for $9800, plus a $3000 grant for the EIDL. The EIDL goes to the SBA. I only wind up with 10% of what we were approved for of the PPP. The reason I was given in writing was that since the demand for the PPP is so high the government wants to make sure every business gets some money. The solution is cutting down the approved amount by 90%. Which really does nothing for me. They are making me pick and choose who to bring back to work. BTW, fun fact. None of my employees want to come back. All they would be doing is sitting around. It's easier for me to save on electricity and send them partial checks every 2 weeks for the next 6 weeks. Which by the way no one wanted because they are collecting more on unemployment. these are part-time workers. They are receiving more than they ever made working for me.
For the past 2 1/2 months I am waiting in the SBA. 3 weeks ago I received an email that we were in line, but agriculture had jumped ahead of everyone and they would get to us when they get to us. Fast forward to this past Friday, May 22nd. My business partner calls me and tells me the SBA denied our loan. The email is dated April 28th. Why is it dated April 28th?? It states and I quote " We haven't sustained enough economic hard to warrant a load from the SBA."
I am tied into phase 4 and kids going back to school. Our doors are shut for 2 1/2 months and I am basically broke. How much ****ing more economic harm do I have to sustain before I am eligible for a God Dammed SBA load!?
Oh, and to make matters worse. This will most likely be the final nail in the coffin. We are part of a Franchise based out of California. The Founder of the Franchise says "Governor Cuomo is adored around the world." They have offered us no help what's so ever but they keep insisting we do things that cost us more money. all 80 franchise locations in the lower 48 were insured by the same insurance company. Each location had its own policy. The insurance company informed us that they are exiting the market and we won't be renewed come July. The insurance Broker that the franchise uses has washed their hands of looking for a new carrier in NYC because NY is impossible to deal with. So now we are twisting in the wind and I have several brokers trying to find us a new carrier at a reasonable price.
This is just a small part of what small businesses in NYC/NYS deal with on a regular basis. How are we supposed to survive when the deck is stacked so high against us? This city and state are not Small Business friendly. My other companies are service industry's that have federal regulations and are easier to deal with than NYC and NYS.
We will appeal to the SBA decision. But if I am being 100% honest I think it's done. Between my partner and myself we have invested $187,000 into this business and if we are closed until September we will be at least another $50,000 in debt with no way of climbing out of that hole. I know for a fact we are not the only ones out there going through this. I think the businesses that were established for many years that saw the writing on the wall that decided to close permanently made the right choices. They made their money and wanted to hold on to some of it. They opened in a different climate when small business was the backbone of the country. Now, that phrase is just a meaningless talking point in states like NY and NJ.
So many times during this crisis I have said how lucky I am to be healthy and have an income. which is wonderful. I am so lucky that I am properly going to go bankrupt and lose a lot of money that took me quite a few years to earn. In a weird way I am at peace with that because I know being self-employed and business owner in any way shape or form is a risk in itself. I understand that risk and took it anyway. I ahve been fortunate that I have had mild to moderate success over those years. I have been self-employed for over 20 years. Even during those 20 years of being self-employed, I would hedge and take small jobs here and there in my field that paid ok or offered health insurance just as a fallback. I survived 2008 and came out stronger with no government assistance while other companies died.
What I can't accept is that the government ordered me to shut for the good of the population to flatten the curve and then left me twisting in the wind at the local, state, and federal levels and has effectively ruined a thriving business that contributed to society.
Rant over.
What our leftist scum governor is doing to people like you in his attempt to destroy Trump is criminal. It’s long past time we as Americans should be marching to the governor’s mansion to strip him on the public square.
Ugh, for the final time, NYS and NYC has its own problems outside of the national economy. Obviously the national economy effects everyone but specifically NY problems are endemic only to NY and they are, as I’ve mentioned, have to do with the high costs such as taxes, rents and wages.
Even before the virus when the rest of the country’s economy was booming, NYC businesses were starting to shutter and or move out.
I get that, but my point is that a recession was basically about to happen, as the article stated that our national economy has booms and busts. We were on the verge of a national bust, as the time that our national economy was “”booming” actually was prolonged(about 12 years versus the usual 7 years or so cycle of a good economy). So, it was a matter of time that some businesses were going to “fall off”, which will go beyond NY(S or C). Unfortunately, this current pandemic just served as a nail in the coffin for those on the edge and many businesses close for a range of reasons.
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