In the last month, small business owners have had to get creative. With most small businesses being closed or partially closed due to the impacts of COVID-19, owners are using every means necessary to stay afloat. One option that many business owners have pursued is applying for the myriad of local, state or federal programs designed to help small businesses. These programs take the form of loans or, in rarer cases, grants. And two weeks ago, three Clarion businesses received the good news that a grant was coming their way.
Only a few weeks after coronavirus closings got into full swing, Iowa Governor Kim Reynolds launched the Iowa Small Business Relief Program to provide financial assistance to small businesses that have been economically impacted by the COVID-19 pandemic. The program was designed to offer eligible small businesses grants ranging from $5,000-$25,000 in addition to offering Iowa businesses a deferral of certain taxes and waivers of penalties and interest.
By all accounts, the grant application process was very extensive. Businesses were required to submit mountains of paperwork, including income and payroll statements, background information, and estimates of losses. Every application received was triaged for eligibility and economic need. Priority was given to businesses demonstrating projected revenue losses of 75% or greater and businesses that were among the first to close due to the public health emergency.
Applications were due March 31, and starting only a week later, grant recipients were announced. 1,200 Iowa businesses were granted 24 million dollars. When the dust settled, three Clarion businesses were awarded the grants: Grounded (receiving $17,000), Rustic Raven (receiving $15,000), and Hearts and Flowers (receiving $9,750). All three businesses were very thankful to be awarded funds.
Maggie Conlon Solis, owner of Grounded, discussed operating in these difficult times and receiving the grant. She reported that her Main Street Clarion business is still open, serving food and tasty confections. Like all Iowa restaurants though, they are closed to dining in so must rely on carry-out and delivery business, which is new to them. They even trialed evening hours and take-and-bake meal options.
Even with all their innovative promotions and creative efforts, Solis notes that these cannot come near making up for lost business. “Most of our business is from people who come in, sit, visit and have coffee,” she said. With those customers not able to stop by, she estimated they are down probably 75%. Facing this level of lost business, Solis appreciates the Small Business Relief Grant more than she can express. She said the grant will be crucial in keeping the doors open. “Even though people aren’t coming in, there is the mortgage, utilities, and the cost of ingredients. That stuff doesn’t go away,” she stated. She also added that the grant will help keep her employees. “I have wonderful people working here. I’m giving them as many hours as I can, and this grant will help with that.”
The owners of Rustic Raven home décor shop also asserted that their grant would be crucial in maintaining their employees. Owners Brook Rasmuson and Sam Stumpf said the monies for them will make the difference in keeping full-time employees versus moving them down to part-time. “For us, we’ve been the most stressed about keeping employees. We just want to keep everyone here, working.” They say the $15,000 will definitely help with that, along with paying other bills.
Rasmuson and Stumpf admit it has been a difficult journey these last several weeks. “A few tears were shed,” they say. “Most of our business is really about impulse buys and seeing and touching the merchandise.” They add that the loss of spring Ladies Night Out is a big blow. Yet, their partial closure has forced them out of their comfort zone and trying new ways to sell. For the first time, they are using Facebook Live to connect with customers and are seeing good traffic on their website, including from out of state buyers. The owners emphasized that Rustic Raven will do deliveries to the Clarion and Belmond area, and curbside pick-up of purchases is available.
Grant recipient Nancy Magee is running her business Hearts and Flowers in a similar fashion. While the storefront is closed to foot traffic, she is still inside working away on arrangements and keeping things up. Magee is also doing deliveries and has curbside pick-up. Even with those options though, it’s hard to make up for lost business, especially as events like prom and the daddy/daughter dance have been postponed indefinitely. She adds, “A big loss is that the hospital can’t take flowers at all. We’re just down greatly overall, and there are several big things between February and May that are now just not happening.”
Magee said her doors being closed has just been sad for her. “We have so many nice things in right now,” she added, describing great spring décor and a new assortment of yard flags. She also explained that she has had to throw a lot away, since flowers have a shelf life. “In the first few weeks, I threw away and gave away tons of flowers.”
With those losses weighing heavy, Magee is thankful for the grant funds. She acknowledges, “I don’t like to ask for help, but this time, I had to.” Magee plans to use the funds like the others, to help pay wages and utilities. “It’s all going right back into the business right away,” she affirms.
Even in their time of difficulty, all three businesses have been beyond impressed with the community and its willingness to patronize them. Magee says that she saw folks utilizing the Chamber’s gift card program at her store right away. The Rustic Raven adds that they have been blown away by the number of new customers they have gotten. Solis at Grounded emphasizes, “It’s been unbelievable. We don’t know how we can thank everyone enough for the support.”
And support during this time is vital for all small businesses. Wright County Economic Development Director Cindy Litwiller says, “We don’t know the impact this will have long term, but it’s definitely a concern that businesses could go under, especially the longer this drags on.” She adds that the goal of grant programs and loans is to help businesses hang on, stay afloat and be viable once they are able to be fully open again.
Four other businesses in Wright County also received the Iowa Small Business Relief Grants. These include, in Belmond: Jerry’s Place – $18,000, Sugarpie Bakery and Cafe – $7,000, Joseph McFarland (Belmond Drive-In) – $15,000. In Eagle Grove: BC Rails- $25,000. Governor Reynolds also added that the state hopes to distribute more grants in the upcoming weeks after getting more guidance from the U.S. Treasury.
All the Clarion grant recipients added that they hope many other local businesses will be awarded grants in the near future. “We just don’t want to see anyone close,” said Solis. “We hope we’re all here at the end of this.”
