Small business owners seek answers in virtual conversation

By St. Clair Murraine
Outlook staff writer

The caller’s name didn’t seem to be as important as the fact that he is a small business owner who is suffering through the COVID-19 pandemic.

He told his plight last Saturday during a Facebook live roundtable that Congressman Al Lawson hosted for small and Black-owned businesses. Things have gotten so bad for him during the pandemic that he shattered his credit just trying to keep his business open, the caller said.

Several resource agencies and Prime Meridian Bank were available to provide answers. State Rep. Ramon Alexander fielded the questions while moderating the webcast.

“You’re not in this alone,” Keith Bowers, regional director for small business development center at FAMU, told the worried caller. “A lot of businesses are going through the same struggles and we have certain lenders who work with people who have experienced credit challenges.”

Having less than exceptional credit doesn’t write off an applicant, Bowers said, advising that it could require collateral and higher than average interest rates to get a loan in some cases.

“I think it all starts with us taking a deep dive into what your circumstances are and try to pair you with the best source of capital,” Bowers said.

Through the Cares Act, several small businesses have taken advantage of the federal Payroll Protection Program. Locally small businesses could also tap into grants available through Leon Cares, the Bridge Loan thorough the office of Economic Vitality or the Economic Injury Disaster Loan.

Banks are administering PPP loans until Aug. 8. Sammie Dixon Jr., vice chairman, CEO and president of Prime Meridian Bank-Tallahassee, encouraged business owners to take advantage of the funds.

He encouraged establishing a working relationship with banks, something that he’s observed many small businesses don’t often do.

“I don’t know a banker who doesn’t want another loan or a deposit,” Dixon said. “If you build that relationship, it’s going to be there for a long time and that’s what makes things a little easier.”

Having a complete business portfolio is an essential for getting started with a bank, Dixon said.

“It’s all about telling the story and what the story is and what is the viability of the story,” he said. “That’s the way you work through and have that relationship with someone that can help you.”

Statistics show that relief has been slow for small businesses, especially those owned by women and Blacks.

Cristina Paredes, director, Leon County Office of Economic Vitality, said a recent survey conducted by her agency showed the 53 percent of businesses owned by women and minorities are seeing a 50 percent drop in revenue.

Bowers mentioned some even more staggering statistics from the National Bureau of Economic Research. It found that 41 percent of Black owned businesses have closed since the pandemic started. At least 32 percent of businesses owned by Hispanic also closed, while only 17 percent of White-owned business isn’t operating.

“This problem is more acutely affecting and having an adverse impact on minority-owned businesses so we are advocating that all minority business avail themselves to the resources that are available,” Bowers said.

Responding to a question about why a business owner could apply only once for a PPP loan, Lawson said that is one of the shortcomings of the original relief package. He promised that another package that’s making the rounds in Washington will be different. Hopefully, small business loans in florida and elsewhere might have a positive impact on business owners.

“We did not expect this pandemic to be this long and that’s the reason it’s like that,” Lawson said. “We are going to make sure we rectify that.”

Another caller who gave his name as Charlie could have been speaking for most small business owners when he asked if relief will continue in Florida since coronavirus cases are increasing daily in the state.

Lawson responded: “The way the pandemic has affected Florida and with hurricane season bearing down on Florida we’ve got a double whammy. As a result, there is going to be special consideration given in working with small businesses to make sure we help them through this.”