Big problems for small businesses
Garth Merrill has been co-owner of Fleet Feet the last 15 years. To protect its staff and customers, the business is closed but may re-open March 30. If the public has any special orders at the store, they will contact the customer about shipping, curbside pickup or other arrangements. Contact: (garthm@fleetfeetcda.com) “We would like to thank the community for their support and appreciate their comments and kind thoughts,” Merrill said.
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Kayak Coeur d’Alene is owned and operated by Chip and Ginger Dalvini. For the next couple of weeks, the business will be open by appointment only. Call 208-676-1533 or email info@kayakcda.com
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But low-interest loans, helping hands available
When the staff at Fleet Feet on Sherman Avenue closed their doors for two weeks starting March 16, they knew times were going to get tough.
“We decided to help flatten the curve,” the shoe store’s co-owner, Garth Merrill, said about taking part in the strategy to practice social distancing. “We have a lot of foot traffic through the store, and a lot of our customers are people at a higher risk: the elderly, health care workers, educators. We work up close with a lot of these people.”
That decision came at a cost. The staff was not laid off, instead receiving what amounts to two free weeks of paid time off. Vendors have purchase orders. Banks hold loans. And Fleet Feet’s revenue stream all but dried up. It’s a conundrum every small business in Kootenai County and around the country are currently debating: Scale back, shut down or ride it out.
The Idaho Department of Commerce announced in a promotional campaign Sunday a U.S. Small Business Administration emergency loan program for small businesses and nonprofits. The Economic Injury Disaster Loans program, which offers a 3.75-percent interest rate on small business loans and 2.75 percent interest loans for nonprofits, allows lenders up to $2 million to pay off over as long as 30 years.
“[The] safety of employees and customers and cash flow challenges have been the top concerns we’ve heard from local small businesses,” said Jeremy Field, SBA regional administrator.
It’s not a loan everyone is eager to take.
“We try to run the business debt-free,” said Chip Dalvini, owner of Kayak Coeur d’Alene. “Borrowing right now is risky for us, because we don’t know how long this will last.”
Dalvini said the spring is when he usually ramps up his kayak and paddleboard business and begins the hiring process. It’s a routine that’s been put on indefinite hold.
“In this particular situation, like a lot of seasonal businesses, you can’t make that money up,” he said. “We might never pay something like that off.”
Field said he understands that sentiment, but keeping smaller companies informed of their options is one of the ways the SBA can help combat the coronavirus pandemic.
“The SBA is using all its resources to inform small businesses of the resources available to them: communication and webinars through chambers of commerce, EDCs, local government, resource partners, lenders, et cetera,” he said.
Merrill, meanwhile, said a loan is not the only option on the table. His lender — Mountain West Bank — proactively offered Fleet Feet a deferred payment, while his vendors have offered extensions on orders.
“I feel like the community around our store is doing everything they can,” he said. “Reach out to your banks, your lenders, your vendors … At some point, money’s due when money’s due.
“But everybody’s making adjustments to help out.”
