Bay Area

California Small Businesses Struggle While Waiting for Stimulus Aid

Published

5 years ago

April 19, 2020

M’Dears Bakery & Bistro fills the air in its South Los Angeles neighborhood with smells of fried chicken, French toast, and homemade desserts. “It was very serendipitous,” said 66-year-old restaurant owner Carrie Reese about how she transitioned from a vendor at jazz festivals to opening a dine-in restaurant at 77th and Western Avenue.

“You could see through the window, piles of chicken. And people started saying, ‘can I just buy a plate,’” said Reese.

Eighteen years later, M’dears recently renovated dining room is empty during what would normally be its busy lunchtime rush, and Reese is struggling to come up with the money to pay her staff.

“I was a little bit slow to do the furloughs and the layoffs. I was hoping against hope that I wouldn’t have to do that. I kept people on longer than I should have. Everybody has kids to support. It’s a really big burden for me to have to make those decisions,” said Reese.

Since mid-March, Reese estimates that her business has slowed by 65% – 70%. She’s had to furlough most of her staff. This comes during nationwide efforts to slow the spread of the novel coronavirus. LA Mayor Eric Garcetti closed the city’s restaurants and bars; only takeout, and delivery are allowed. This is happening as authorities issue daily reminders for people to follow the state’s stay-at-home order.

Reese said she’s paying her remaining employees order-by-order and when that’s not enough she pulls money from her retirement savings. At the same time, she notices more customers are paying with credit cards. That means it takes days before sales of smothered pork chops or plates of wings and waffles make them money. “It’s embarrassing. It breaks my heart when people say ‘hey the check didn’t go through,’” said Reese.

M’dears Bakery & Bistro is one of nearly 4 million small businesses in California. About 1.6 million of them are minority-owned. The restaurant industry as a whole has been hit hard by the COVID-19 social distancing policies. By April 9, the National Restaurant Association estimated more than 3 million restaurant employees across the country have lost their jobs; 560,000 here in California.

Reese employs about 40 people at M’dears LA and M’Dears Lakewood near Long Beach. She wants to bring all her employees back when restaurants can return to full operation. But Reese says it is nearly impossible for a business such as hers with “razor thin profit margins” to survive this prolonged slowdown. Reese has decided to focus on meeting payroll while everything else falls behind. She described earning “just enough to get through the day.”

Reese applied for the Paycheck Protection Program (PPP) intended to help small business owners stay afloat. But on Thursday April16, The US Small Business Administration (SBA) announced it is “unable to accept new applications” due to a lack of funding. The $349 billion program was nearly out of money. “Without that money how am I going to pay off debt,” she said.

As of April 13, SBA said it had approved more than 1.3 million PPP loans totaling more than $296 billion. Reese has not heard from her bank JPMorgan Chase about her application. “ I feel so helpless and disheartened,” said Reese. Chase was one of the banks that received criticism for delays in launching its online PPP application platform.

The President requested another $250 billion to replenish the COVID-19 small business relief funds, but members of Congress have not reached an agreement. This deadlock comes about two weeks after lawmakers passed the Coronavirus Aid, Relief, and Economic Security (CARES) Act. The $2 trillion stimulus package included $377 trillion to help small businesses survive and to keep people employed. The bulk of the funding was divided into two types of loans. The PPP loan and the Economic Injury Disaster Loan (EIDL). Reese applied for both stalled programs.

The Paycheck Protection Program (PPP)
This is a forgivable loan of up to $10 million with a 1% interest rate. “The max amount a business can apply for is 2.5x the business’s average monthly payroll costs, not exceeding $10 million. Under specific circumstances, PPP Loans can be forgiven. The amount a business spent on payroll, rent, utilities and other eligible costs within the 8-week period upon receiving the loan is forgiven. The remaining amount turns into a fixed-rate loan with the SBA,” adds Lieberman.

Economic Injury Disaster Loan (EIDL)

Businesses can receive as much as $2 million in assistance from the federal government. This is a fixed-rate loan with a 3.75% interest rate for small businesses and a 2.75% interest rate for private non-profits. “However, applicants are also eligible for a $10,000 forgivable advance on the loan immediately after applying, even if the business does not ultimately receive the loan,” said Rebecca Lieberman, Policy Advisor and Research Manager with the San Diego Regional Chamber of Commerce. The SBA has also stopped processing new EIDL loans, citing a lack of funding.

As California small business owners left out of the first wave of loan approvals wait to find out if these federal programs will resume, there is small business aid at the state and city levels.

California COVID-19 Small Business IBank Loan Program

Earlier this month, Gov. Gavin Newsom announced $50 million in loan guarantees for small businesses that may not be eligible for federal relief. The State is also allowing small businesses to defer payment of sales and use taxes of up to $50,000, for up to 12 months. In a move said to help workers and small businesses, people receiving unemployment benefits are temporarily being paid an extra $600 on top of their weekly amount.

California City level COVID-19 Small Business Aid

Small business owners in San Francisco are being encouraged to apply for the San Francisco Hardship Emergency Loan Program (SF HELP). The loans have a 0 percent interest rate and are administered by Main Street Launch in partnership with the city of San Francisco. Small businesses can make loans of up to $50,000 for terms of up to six years.

Additionally, through the City of Los Angeles Small Business Emergency Microloan Program, businesses and microenterprises in Los Angeles that are responsible for providing low-income jobs can apply for emergency microloans in an amount between $5,000 and $20,000. Reese hopes Congress reaches an agreement to fund the loan programs soon and that more applications in the queue are approved. In the meantime, three days a week she and her scaled-down team cook M’dears signature soul food for about 50 seniors who are shut-in during this pandemic.

The emergency meal delivery program was launched by LA City Councilmember Marqueece Harris-Dawson. Reese says compensation for the heartwarming cause has been slow. In fact, on the Friday leading into the Easter holiday weekend, Reese couldn’t afford to pay some of her staff. “Up to today, we have provided 300 meals and haven’t gotten a penny for it,” she said, “You wanted me to keep them on staff to do this, but you’re not giving me the money to pay them, so I can’t pay them.”

Reese does not have a financial parachute. M’dears Bakery & Bistro is her retirement plan. A plan she sees being threatened every day that potential customers are told to stay inside, “All I see is my retirement flashing before my eyes. I am going to be so far in debt trying to dig my way out of this. I’ll be 75 years old before I can think about retiring. ”

The National Restaurant Association has launched RestaurantsAct.com to share the latest COVID-19 relief information.

Ebone Monet

California Black Media

Posts by Ebone Monet

Up Next

Coronavirus: Mayo Clinic’s Dr. Joyner Leads COVID-19 Plasma Treatment Research

Don't Miss

Minnesota Doctors on the Cutting Edge Of COVID-19 Fight

Ebone Monet

California Black Media

Click to comment

Activism

City of Oakland Celebrates Reopening of Main Library

“Libraries are such critical facilities for all Oaklanders, whether it’s children coming to story-time, adults reading the newspapers or borrowing the latest novels, and people engaging with a range of services and programs that the library hosts,” said Council President and District 2 Councilmember Nikki Fortunato Bas. “Such library services and programs are only possible when the facility’s electricity, heating, roof, and lighting are fixed and running efficiently. I’m proud to join this re-opening of our Main Public Library.”

Published

7 hours ago

December 18, 2024

Oakland Post

Left to Right- Jamie Turbak, Director of Library Services, LaTonda Simmons, Assistant City Administrator, Nikki Bas, President Oakland City Council, Shen Thao, Mayor of Oakland, Carroll Fife, Oakland City Councilmember District 3, Harold Duffey, Assistant City Administrator, Sean Maher, Projects Coordinator. Photo by Kevin Hicks.

The branch had been closed since May for critical infrastructure upgrades

Special to the Post

The City of Oakland leadership and community partners gathered to celebrate the reopening of the Main Library after completion of critical infrastructure upgrades to enhance the library’s facilities and provide a better experience for patrons.

Renovations include new roof installation, skylight repair, critical electrical system upgrades, new boiler control system installation, auditorium heating and cooling system installation, and improvements to lighting, flooring and ceilings throughout the building.

“This is truly something to celebrate, the reopening of our wonderful Main Library! I congratulate the staff and our partners for this important project to make the Main Library a more comfortable place for everyone for years to come, said Oakland Mayor Sheng Thao. “Thank you to Oakland voters and the California State Library for making these crucial improvements possible.”

“Public libraries are a wonderful resource for our residents, offering a safe space for learning and being,” said District 3 Councilmember Carroll Fife. “It is critical to improve and modernize our libraries so more members of our community can utilize and enjoy them. I’m excited that the necessary renovations to the Main Library have been completed successfully and thank everyone involved, particularly the City team, who helped secured the necessary grant funds for this work.”

“I am proud of the City staff and project partners who kept this important project on schedule and under budget,” said Assistant City Administrator G. Harold Duffey. “The library is an incredibly important resource for our community members, and this project is an investment into the library’s future.”

“December 2nd was a momentous occasion for Oakland Public Library as we proudly reopened the doors of the Main Library following extensive infrastructure repairs,” said Director of Library Services Jamie Turbak. “Closing the Main Library for six months was no easy decision, as it serves as the central hub for our library system and is truly the heart of Oakland. Yet, this renovation was essential, representing more than just physical upgrades—it reflects our ongoing commitment to creating a safe, welcoming space for everyone.”

The City Administrator Jestin Johnson also attended the press conference and signalled his support for the completion of the record-setting completion of the renovations. Gay Plair Cobb, a newly appointed Library Commissioner said the Library represents the soul and brains of our community.

The Oakland Public Library secured funding for these crititcal repairs through a variety of sources. The California State Library’s Building Forward Library Facilities Improvement Program awarded the Main Branch $4.2 million. To comply with the grant terms, the City of Oakland provided matching funds through Measures KK, as approved by the Oakland City Council in October 2023.

The Main Library will host an Open House to celebrate the reopening on February 22, 2025, 10 a.m. – 5:00 p.m.

About the Oakland Public Library

The Oakland Public Library is a part of the City of Oakland in California and has been in existence since 1878. Locations include 16 neighborhood branches, a Main Library, a Second Start Adult Literacy Program, the Oakland Tool Lending Library, and the African American Museum and Library at Oakland (AAMLO). The Oakland Public Library empowers all people to explore, connect, and grow. Oaklandlibrary.org

Oakland Post

Posts by Oakland Post

Activism

A Student-Run Group Provides Critical Support Services to Underserved Residents

Those visiting The Suitcase Clinic can get legal advice, sign up for food assistance, receive housing resources, get medical help, or enjoy a hot, fresh meal. They can also get haircuts and foot washes from the student volunteers. Nilo Golchini, executive director of the clinic, said one of the goals for most of the students working there is helping bridge the gap of trust that exists between many unhoused people and the healthcare and social welfare systems.

Published

8 hours ago

December 18, 2024

Oakland Post

UC Berkeley Law Students help a clinic visitor with legal advice at their Tuesday night services. The Clinic offers a variety of resources, including medical, to those in the community who have little access to these services. Photo by Magaly Muñoz

Part One

By Magaly Muñoz

Every Tuesday evening, the dining hall of First Presbyterian Church fills up with dozens of people eating, laughing and moving from table to table, receiving much-needed services from UC Berkeley students – just a few blocks away from the university’s campus.

Individuals seeking support services can be found in this multi-stationed room on the south end of the church talking to law students, student case managers, or receiving medical attention in a corner by healthcare professionals.

This weekly event is hosted by Cal students through a volunteer-run program called The Suitcase Clinic.

The clinic, founded in 1989, was intended to offer free resources to underserved communities in Berkeley and surrounding cities. The majority of the clinic’s clientele are unhoused or low-income people looking for extra support.

Those visiting the clinic can get legal advice, sign up for food assistance, receive housing resources, get medical help, or enjoy a hot, fresh meal. They can also get haircuts and foot washes from the student volunteers.

Nilo Golchini, executive director of the clinic, said one of the goals for most of the students working there is helping bridge the gap of trust that exists between many unhoused people and the healthcare and social welfare systems.

During their tenure in the program, many of the students say they become strong advocates for homelessness rights.

Visitors of the Suitcase Clinic can receive haircuts and foot washing by student volunteers every Tuesday evening. Photo by Magaly Muñoz.

“We’re also standing in solidarity with them. So, it’s not saying, ‘I’m going to help you, but I’m also going to stand with you,’” Golchini said.

Student volunteers get extensive training prior to working directly with clients. Those interested have to take a semester-long class to become versed in areas such as outreach, intersectionality, how to interact with unhoused people, how to sign people up for social services. and more.

Volunteers then get to pick from three different clinics: General, Women’s, or Youth and LGBTQ+.

The General Clinic is the most popular among visiting residents, while Women’s and Youth/LQBTQ+ have more specialized services for attendees.

The Women’s Clinic has many of the similar services to General, but also includes nail painting, childcare, and massages.

The Youth and LGBTQ+ Clinic offers a safe space for young people navigating living on the streets, with services that include housing referrals, wellness and recreation classes and employment resources.

Golchini explained that it’s important for them to keep these clinics separate because the different demographics experience poverty and homelessness differently than those who visit the General Clinic.

Suitcase Clinic student workers posing for a photo with a frequent clinic attendee. The Clinic is open to Berkeley unhoused and low-income residents who need medical or legal service, or a hot meal. Photo by Magaly Muñoz.

“We’re able to provide spaces where people can come in and feel safe and not feel like they’re constantly worried that something’s going to happen to them,” she said.

An outreach team also visits encampments every other Saturday in the Berkeley area to provide hygiene kits and encourage people to visit the in-person clinic, if possible.

However, Golchini said engagement has been low for some time now due to a recent decision by the U.S. Supreme Court that allows cities to ban and cite people for sleeping on the streets.

She said a lot of their clientele got displaced to other cities over time, making it difficult to stay in contact with the services the Clinic was providing for them.

But that hasn’t slowed down the students at the Clinic, if anything, it has pushed them to do more for the community they serve.

Oakland Post

Posts by Oakland Post

Arts and Culture

Promise Marks Performs Songs of Etta James in One-Woman Show, “A Sunday Kind of Love” at the Black Repertory Theater in Berkeley

“The (show) is a fictional story about a character named Etta, aka Lady Peaches,” said Marks. “She falls in love with Johnny Rhythm, leader of the Rhythm Players Band and headliners of Madam G’s Glitta Lounge.” Marks channeled the essence of Etta James, singing favorites such as “Sugar on the Floor” and “At Last.”

Published

8 hours ago

December 18, 2024

Oakland Post

Photo Courtesy Of Promise Marks.

Special to the Post

It was “A Sunday Kind of Love” at the Black Repertory Group Theater in Berkeley on Saturday night, Dec. 7. The one-woman musical based on the music of Etta James featured the multi-talented singer Promise Marks

Marks, who wrote and directed the musical, also owns PM Productions.

Marks channeled the essence of Etta James, singing favorites such as “Sugar on the Floor” and “At Last.”

In between her soulful songs, Marks narrated impactful moments of the love story and journey of blues and forgiveness.

Marks sultry voice carried the audience back to an era that echoed with the power of Black music and a time of great change.

Marks said James shared love for the Black community by singing at gatherings during the Civil Rights Movement uplifting the people.

“She spoke to the movement, spoke to the people, and let her music speak for itself,” Marks said.

Backing the musical’s monologues, images and videos of Etta James are projected for the audience to view. While the production is fictional, Marks infused script with the unfairness and heartbreak James experienced while performing.

Marks performed gospel artist Donnie McClurkin’s “We Fall Down” as she narrated acts of reconciliation and forgiveness among the characters at Johnny Rhythm’s deathbed.

Marks, who regularly sings for the Miss America Pageant, was asked to perform as Etta James last year. “(At the event) a lady yelled out to me: ‘You’re Etta James!’ And then the audience went crazy. I said to myself, ‘I may have something here,’” she said.

Within 12 months, Marks created the musical production, which featured a dozen songs honoring “the great legacy of Etta James,” she said.

Marks says she was saddened to see how Etta James was often judged by the struggles in her life and wanted to offer attendees a more layered view.

“Etta’s life was so big. I want people to know that she was more than her drug addiction,” said Marks. “We can’t make that her legacy. Her catalog is too amazing. You can’t just be that and have the catalog that she (created). I don’t want the addiction to be the focus: I want her music, her element, her sassiness, and what she brought to be the focus – her woman-ness, that she was strong, and I wanted to honor that.”

Set Designer Nora Burnette says she created the set segments to mirror James’ life story. A set designer for BRG since 2016, she explained that her process of researching the scenario and the character serve as her inspiration for her design.

“I try to design a set as close to real life as possible so that the actress can deliver the performance sincerely,” said Burnette. “By creating the right setting, it helps the actors release the true essence of a character.”

The set brought the story to life and absolutely floored Marks. “Once Promise (Marks) saw the actual set, she understood my vision: ‘Wow, you get me. You get it,'” Marks told the designer.

Born Jamesetta Hawkins, Etta James, began her career in 1954 and gained fame with hits such “At Last” and “I’d Rather Go Blind.” She faced a number of personal problems, before making a musical comeback in the late 1980s with the album “Seven Year Itch.”

Co-producer and BRG Development Director, Sean Vaughn Scott, works with Overseer Production. According to producer Pamela Spikes, “Marks talent truly does Etta’s life story justice.”

Pam Jacobs of Hercules, a friend of Marks’ mom, Jackie Smith, said, Marks “was fabulous and sang all of those songs flawlessly.”

“I’m so proud of my daughter,” said Smith.

Marks, who has served as an instructor for BRG, will return on Feb. 21- 23 for an encore run of the musical.

“It’s an honor to be a part of the BRG (Black Repertory Group) family and continue our executive director Dr. Mona Vaughn Scott’s vision for the Black Repertory Group theater,” said Marks.

The Black Repertory Group Theatre is located at 3201 Adeline St., Berkeley, CA 94703. For information, visit: BlackRepertoryGroup.com