Small Businesses Face Closures as COVID-19 Restrictions Stay In Place
The Small Business Association of Michigan says many business owners cannot sustain operations if COVID-19 restrictions stay in place.
Orders from the state health department are set to expire on Sunday, but it’s not clear if they’ll get extended again.
“They really can’t hold on much longer and so it is absolutely urgent that this week Congress pass an aid bill,” said President of the Small Business Association of Michigan, Brian Calley. “It’s also urgent that when this emergency order comes to a close on Sunday that it not be extended in the same way that keeps businesses closed.”
According to a survey by the National Federation of Independent Business one-in-four small businesses in the U.S will not make it if restrictions aren’t lifted.
“It’s even worse for hospitality. Restaurants are maybe looking at one in three restaurants in the next six months would close if things continue the way they are,” says Traverse City Tourism CEO and President, Trevor T’Kach. “Through surveys national and then kind of looking at it from a Michigan perspective, you’re looking at maybe losing as many as two-thirds of the hotels.”
Which has many business owners asking lawmakers at the state and federal levels to come up with a new relief plan.
T’Kach says, “If we can have a program like that and some other stimulus for the hospitality industry, there’s a far better chance that these businesses will make it through the wintertime.”
The National Federation of Independent Business also reports 91% of small businesses in the country have already ran out of fund from the Paycheck Protection Program.