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Small business relief dollars have begun to trickle into Del Norte County, the team lead for a local Economic Resiliency Task Force says.

But for many employers being able to obtain that assistance has been slow going, throwing into light the ever-evolving COVID-19 pandemic and the realities of living in a small rural community, says task force leader Holly Wendt, Crescent City’s director of recreation and events.

“We only have the resources we have,” she told the Wild Rivers Outpost on Tuesday. “So we have to try and get the information as quickly as we can out to businesses.”

Created as a part of the Del Norte Emergency Operations Center, the Economic Resiliency Task Force is designed to help local employers small business support from the federal government.

The task force is also working with Rob Holmlund, of Malex Consulting, and Chuck Wolfe, president of Claggett Wolfe Associates to provide advice to small businesses.

The first $350 billion in the federal government’s Payment Protection Program, established through the $2 trillion CARES Act bill, came to businesses of less than 500 employees through the Small Business Administration’s 7(a) lenders, Wendt said. Del Norte County doesn’t have a lender that’s approved to provide SBA loans, she said.

“They really prioritized businesses that could get those applications in,” Wendt said, of the SBA lenders, “and also businesses they already had a lending relationship with.”

Not only are Del Norte County’s businesses smaller in general, there are a lot of contractors and sole-proprietors, Wendt said.

There aren’t many businesses who has an accountant or an advisor who can help do all the paperwork. That first $350 billion was gone in 20 days, Wendt said.

Of the 112 local employers who took the Economic Resiliency Task Force’s first economic injury survey about two weeks after California Gov. Gavin Newsom issued his March 19 stay-at-home order, many were still wrapping their heads around the crisis, Wendt said.

Some employers were reluctant to apply for loans because they didn’t want to get into debt, Wendt said. Others weren’t sure if they would be able to pay it back.

Plus, though communities have also begun to discuss relaxing safety measures, “there’s still the ambiguous unknown,” Wendt said. People are seeking answers no one can provide, she said.

“How long will this last,” she said, giving an example. “When can we open, when can’t we. How do you manage cash flow? how do you know when to apply for what loan when you don’t know what the designated end is?”

According to the first survey, of the 115 responses to the question of whether or not their businesses were currently open, 57.4 percent said they were temporarily closed. More than 61 percent of 83 respondents said they needed help with cash flow.

Based on that first survey, Wendt reported $1.12 million in lost revenue about two weeksa fter Newsom’s March 19 order. Sixty-two businesses had temporarily closed and 252 employees were laid off.

Wendt said the Economic Resiliency Task Force deploys injury surveys about every two weeks, but participation has dropped off. The most recent questionnaire only garnered 20 answers. Another that will be active through next week has only had 22 responses as of Tuesday, according to Wendt.

Though federal SBA loan dollars have been slow to come — City Manager Eric Wier reported Tuesday that a handful of employers reported receiving those funds — business owners with less than five employees can take advantage of a local loan program.

Initially funded through a $140,000 donation from the Gill and Ann Hess Foundation and other local partners, the Small Business Stabilization program offers up to $5,000 in no-interest loans. The Arcata Economic Development Corporation is also providing assistance, Wendt said.

“There’s funding left in that (program) and potentially more funding coming in,” Wendt said.

Meanwhile, Wendt urged employers to visit the Economic Resiliency Task Force’s new Facebook page. There, people will find information about webinars through the Small Business Development Center as well as links to the latest survey.

Documents

• Economic Injury Survey results

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