(Note-The Eagle reached out to several business people for this story. We have included the responses of those we received/)
The recent start of the Small Business Loan Program by the Federal government should help those downtown businesses that are struggling amid the COVID-19 pandemic and its nasty aftermath. Congress approved the nearly $350 billion dollar package as part of the economic rescue plan. Also know as the Paycheck Protection Program, it’s intended to support businesses so they can ride out these tough economic times and also assist in keeping workers or rehiring those laid off.
Under the plan, businesses can get up to 2.5 times their total monthly payroll up to a maximum of $10 million. The Small Business Administration has set the interest rate at one percent on the loans, and repayment is deferred for six months. Eligible businesses include those with fewer than 500 employees, including nonprofits, and there is no requirement for a personal guarantee or collateral. 75 percent can be used for payroll, and the remaining 25 percent for other expenses such as rent, utilities, etc. The loan can be fully forgiven if you rehire the laid-off employees.
Downtown Eagle Grove businesses are by no means immune to the economic downturn now hitting our country. The timing of something like this is never good, but it might be even worse here as we were starting to see empty storefronts that were filling up again. I decided to speak to a few of the business people, some who are either closed and only open by appointment, and some who are still trying to maintain some degree of normalcy – if that’s even possible. I also interviewed loan officers from the two banks.
Tom and Missie Neiderhauser operate Grandma’s Attic and are currently open by appointment only.
“The loan programs being offered are good for those who have strong businesses and the capacity to recoup once the crisis is over,” said Tom. “For many small businesses, an additional loan would only add more burden or stress to their overhead.”
He goes on to say that after about three years of operation of their business they were seeing a banner first-two months of this year and thought 2020 was going to be their breakthrough year.
“The majority of our customers are non-local,” said Missie. “We attract clients from the Twin Cities to Des Moines and from Omaha to Iowa City. We have also sold to customers from California to New York with on-line sales. We are proud to let our visiting customers know about all the unique stores and opportunities in Eagle Grove, and always encourage them to ‘check Eagle Grove out’ before leaving town!”
She went on to say that since their business inventory consists mostly of discretional items, the fear with the virus and its effect on the economy is that people will focus more on catching up with overdue bills and expenses and hold off on optional purchases.
“For us, the long-term effect could stretch out for a much longer period of time than most businesses such as restaurants,” she said.
The owners feel that the initial programs that are being offered were not geared toward them.
“We didn’t qualify because we are an owner/operator business with no employees, and did not qualify as a small targeted business,” said Tom. “Our hope is that we can get through this shutdown sooner than later, and that the government will be able to stimulate the economy and give people the security to feel free to make purchases again.”
Missie added that there are some additional grants and loans being offered that seem more fitting to their business structure.
“We have applied for two of them, but we don’t know if we qualified as we have not heard back,” she said. “At this point we’re just crossing our fingers that we will be able to get some help to cover our monthly expenses and the roof work we need on the building.” She explained that process started last fall but was not completed so over the winter they experienced water damage from both snow and rain.
“This is an expense we must address as soon as the weather cooperates,” she said. “The fact that we’re not making our normal sales volume will put added strain on us.”
They both feel the support from the community, especially the Chamber, has helped. “Sarah (Middleton) is doing a great job of being supportive and informative to our businesses,” said Tom. “As retail committee members we worked for a year and a half to offer promotions and fun events for the community, and many times those helped support local and school programs. Our goal was to get more local people into our stores to see what our businesses have to offer.” Unfortunately, he said they were not always well attended by Eagle Grove citizens. “Huge kudo’s go out to those very loyal, never miss an event here to help and support any way we can people,” he said.
They would like to thank everyone in the community that have supported them and other small businesses.
“For those of you who stop to see if we have something in inventory before heading out of town or shopping on-line, and to those of you who just stop in every so often to check out what’s new, we appreciate you with all our hearts,” said Missie. “Thank you to those who have purchased gift certificates during this crisis. We look forward to serving you once we can get our doors back open.”
“A big thank you to Dick & Kevin Calahan and the James R. Johnson Foundation for supporting our community during these troubling times,” added Tom. “We encourage everyone in take a look around town, see what we have to offer and to shop local first whenever possible. Help support the people who help support the community. We are proud to call Eagle Grove home, and we value the friendships we have made as lifetime residents.”
Les and Tonjala Huntley of Huntley’s Pit Stop feel the Federal and State assistance programs to small businesses are wonderful. “Without it a lot of us would have no hope of recovery,” stated TJ. “I have applied for all that I am qualified for. I have been overwhelmed, and my heart is warmed by all the community involvement in supporting our business.”
She went on to say that they now offer curbside pickup and delivery, grocery shopping and pharmacy pickup for folks that can’t get out.
“If I can go home from work everyday, and know that we helped one person or family, then it’s all worth it,” said TJ. She also feels Middleton has been very creative at helping all small businesses in town.
“Kevin Calahan has been a wonderful asset as well,” she said. “I wouldn’t want to be anywhere else. I love, love, love our community.”
Jim & Gayle Christ of Christ Furniture are open by appointment only.
“Pandemic is a difficult word to comprehend,” said Gayle. “It’s like the words billion and trillion. They all seem a bit too large to wrap your head around.”
According to her, they are for the most part taking each day as it comes. “We are not in a panic,” she said. “The Governor has forced us to lock our doors, but we are still able to deliver items and take orders over the phone.”
Jim shared that they still have seen how the community is pulling together.
“Many of our friends and customers have called to see how we’re doing,” said Jim. “Sara at the Chamber office is working diligently to keep a positive spin on our downtown businesses.” When asked about the loan program, he said “Yes, we are planning on taking advantage of the available grants and programs.”
They are both impressed with what’s going on in this community right now.
“There are so many wonderful things happening in Eagle Grove right now,” said Gayle. “Volunteers are making masks, providing meals, running errands and helping each other in so many ways. Our Christian leaders are doing what they can to remind us how important God and prayer are in our lives. Teachers are providing many creative ways fo their students to keep learning.”
“Grocery store staff, convenience stores, EMT’s, volunteer firemen, the police department, doctors and nurses and all the rest of us are pulling together to get through this…And we will!” added Jim.
Amy McCoy, Vice President of First State Bank, stated that they have been involved in the communities they serve with helping people affected by this.
“One day a week we are buying lunch for employees at a different restaurant in each of our communities,” stated McCoy. “Our lenders worked all weekend to help our customers in applying for the Small Business Association-Payroll Protection Program loan which was part of the CARES Act. Through these efforts, the PPP will put tens of millions of dollars back into local businesses for payroll support, which in turn will be spent in our communities.”
She feels the response from the Federal government has been strong in tying to support both workers and businesses.
“It is costly, but also necessary in this environment,” said McCoy. She recognizes that for small business owners that cannot be open it is a difficult situation. “From a banking standpoint, be certain to communicate with your banker so you know your options,” she said. “From a personal view, wee encourage them to stay strong physically and mentally. It is an unprecedented time in our country, and we appreciate what they do for our community.”
She would also encourage everyone to continue to practice what the CDC is suggesting for both social distancing and personal hygiene. “We all need to keep in mind that our personal ability to not facilitate the continuation of this virus could save a life,” said McCoy.
“At First National Bank, the safety and well-being of our customers and community is our top priority,” stated CEO Susan Whitson. “When Governor Reynolds first announced the State of Emergency declaration we began following recommendations for social distancing from both the Iowa DPH and the CDC.”
All the bank locations remain open, but lobbies have been limited to appointments only during regular business hours.
“All FNB offices will continue to support our customers with full-service banking at our drive-up windows, through customer service and by using our on-line and mobile services,” said Whitson. “If you need to meet with your banker, please call for an appointment.” She admits that the sooner this medical emergency is over the less impact it will have economically for everyone.
“Quick government actions, including fiscal actions by Congress and monetary actions by the Federal Reserve Bank, are a start to help us through this,” said Whitson.
Her advice is to contact your local FNB office for help to navigate the process.
“Looking through State and Federal programs can be overwhelming,” said Whitson. “Our bankers are aware of all the State and Federal programs that are available to help our small business owners through this situation. Each business has unique needs, and our FNB business bankers are up to date on what programs would be appropriate for each business situation.”
She finishes by reminding everyone to also continue taking care of your health.
“Nothing is more important than the safety and health of our employees and customers,” said Whitson. “Follow the recommendations of our state and medical officials and we will all get through this together!”
