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Local small businesses may benefit from state aid as additional restrictions loom

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If a new stay at home order is issued, it could have a major impact on already-struggling local businesses. The governor said he’s taking this into account.

News Channel 3’s Dani Romero with more on how they could benefit from some help on the way.

Some local business owners in downtown Palm Springs said they are worried about the impact of another possible shutdown. So a boost in aid from the state is welcome. Still, many are hoping they won’t have to close for good.

“It’s stressful not knowing I think what the next step is going to be is hard," said Read Brown, owner of Read Brown salon.  

True feelings of a small business owner. Read Brown’s Salon in Palm Springs is still open but business has been scaled back. 

“I am down at least 60 to 70 percent not to mention the fact that I don’t have any income coming from the other stylist in the salon anymore so its just me and so its just my clients now," said Brown.

While Governor Newsom considers a new stay at home order for counties in the purple tier. He’s also promising to help offset some of the economic pain this would bring small businesses. 

A temporary tax relief and an additional $500 million in relief funds are available starting now.  

“These are grants up to $25,000 this program will be bridged just in the number of weeks to what we will work on with the legislature in the next legislative session," said Newsom. "So I want folks to know this is not the end just the beginning.” 

Despite the support, Brown is  weighing options. 

“Grants fantastic. Loans a little nervous because I am already into loans through the first two shutdowns," said Brown.

Brown doesn’t want to be underwater. 

“You gotta pay that back, I’ll get some forgiveness for it but there’s a chunk of change that I've got to figure out how to pay back," said Brown. "So added debt on top of the debt already through this is got to weigh it.” 

At Daddy’s Barbershop, employees there say if they shut down for a third time. This relief could be their lifeline. 

“It definitely would help paying rent and overhead cost, it would help with overall shop and keeping us open," said Evan Graham, manager at Daddy's Barbershop.

 According to an August Small Business Majority survey, data found that 44% of small businesses are at risk of shutting down.

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Dani Romero


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