Tebag Bagasi: 4 challenges small businesses face now that much of Central NY has reopened

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What if someone contracts the coronavirus at my store? What if I get sued? Should I just relax face mask rules if the neighboring business does? How many months can I keep going like this?

Perhaps the most daunting: What if we have to shut down again?

Small business owners are asking a new crop of questions, which accompany the relief that the large-scale reopenings of businesses in Central New York have brought.

Local experts and business groups including CenterState CEO report that as more businesses have been allowed to reopen, more business owners are starting to feel optimistic about the future.

But that optimism follows three months of uncertainty about whether they’d ever be able to open again. Now, amid a period of hope, many still wonder how they will survive the public health and economic crisis.

While experts say New York courts have not been flooded at this time with coronavirus-related lawsuits, they acknowledge business owners should be concerned about liability, and the potential consequences of someone catching the virus in their facilities.

Business owners and lawmakers have fretted over coronavirus liability waivers and insurance.

Syracuse lawyer Adam Mastroleo told syracuse.com the best way for a small business to guard against liability is with safety precautions and plans.

“The No. 1 and the best defense against any claim related to Covid will be that you as a business had a safety plan in place that complies with the guidance of the state and federal government and that you implemented that plan, you communicated that plan and you followed it,” he said.

Mastroleo joined syracuse.com for a live Facebook discussion on the topic. He offered tips for businesses considering liability waivers. (You can watch the full discussion below at the end of the article.)

While New York state has gradually rolled out thorough guidance for many industries that have reopened, there are still areas that lack clarity and cause confusion.

“Now what we’re seeing is businesses which have been open, have put their plans in place, have specific questions about the guidance, about what the state is requiring them to do, gray areas where there isn’t such clear guidance and they are looking for our advice about what to do,” Mastroleo said.

The rules are changing, too, so business owners need to stay current with the latest information from New York state.

Take wedding venues: Once they were completely banned from operating, then allowed to have 25 people. For now, experts including Mastroleo say the 50-person gathering limit in New York applies to wedding receptions.

Others argue venues should be subject to the 50% capacity rule for restaurants. It’s a tricky question for hybrid businesses, including those large enough to host hundreds of guests and maintain social distancing.

Some seek legal advice, while others take matters into their own hands. Others look to their competition, where they sometimes find pressure to break the rules.

It’s a pattern and a headache shared by gym owners, barbers and dog groomers throughout the reopening process.

CenterState CEO’s survey showed some upticks in hiring among local businesses. There have been bright spots in the local economy, such as a dental appliance start-up opening on the South Side, that hopes to create 50 jobs.

But many of the small business owners interviewed by Syracuse.com report they have cut their staffs to respond to decreased demand during the pandemic.

Business owners are having to redevelop their business models, whether it’s through cutting overhead costs, asking customers to pay more, reducing hours and employees, or completely overhauling the products and services they offer.

“Just because a business is open doesn’t mean people will go,” said Rob Simpson, CenterState CEO’s president. “[Business owners] are understandably nervous. ... But we do continue to see people getting creative and being very adaptive.”

Looking at the long-term, businesses are also having to reckon with the possibility that another wave of coronavirus spread or even a small outbreak could force them to close again.

“The psychological impact would be profound,” he said, “even more profound, I think, than the obvious economic impact.”

For weeks, small businesses clamored to get a piece of the Paycheck Protection Program.

While much of that chaos has subsided, financing -- and now, qualifying for PPP loan forgiveness -- is still paramount for businesses that are struggling with revenue and cash flow during the pandemic.

The PPP disseminated billions of dollars to small businesses and non-profits across the country, in the form of low-interest forgiveable loans. Congress made changes to the law, making forgiveness easier, but businesses that don’t want to be stuck with a 1% interest loan still have to follow relatively stringent rules to have their loans flipped into grants.

Businesses are required to spend the funds within 24 weeks of receiving a loan, and eligible expenses are limited to payroll, rent, mortgage interest payments and utilities.

Congress decreased the percent of the loan that has to be spent on payroll, but a majority (60%) must still go toward employees.

“There’s a sense of relief,” said Calvin Corriders, regional president of Pathfinder Bank, which has approved hundreds of PPP applications. “There definitely is a sense of a lot less pressure, but there are still a few questions.”

Corriders noted that his customers are also asking about other financing options. Many business owners are reluctant to spend the cash they have on hand, and are trying to save money wherever possible. Historically low interest rates are attractive to business owners, Corriders said. Many are interested in acquiring loans or refinancing their current debt to propel their businesses through the next several months.

“Lots of customers asking about refinancing,” he said.

Small business owners: Have a question or a story to share about how you’re coping through the coronavirus pandemic and subsequent shutdown? We want to hear from you. Contact Back in Business reporter Julie McMahon: Email | Twitter | 315-412-1992

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