How the COVID-19 economy is affecting LA's small businesses

According to a recent survey conducted by the U.S. Chamber of Commerce, nearly three out of five small business owners fear the COVID-19 pandemic may force them to shut down permanently.

Back in March, Blazin’ Burgers, the Karmazyn family’s new vegan fast food restaurant, was set to open for the very first time. Then, the local public health officials declared the lock-down of most businesses due to COVID-19.

“We were on the verge of getting our permits,” said co-owner Marilyn Karmazyn, “and so that sort of came to an abrupt stop and that was probably the most challenging part of all this because we still had all of our expenses to pay.”

Blazin’ Burgers was among the many start-up businesses that had to go back to the drawing board with its financial plans, before it got the chance to open its doors.

But Karmazyn, who runs the restaurant with her daughters Kathryn and Kris, was able to open Blazin’ Burgers in July, and was able to succeed despite the turbulent economy.

Co-owner Kathryn Karmazyn says they owe their success and recovery to online delivery services such as DoorDash, Postmates, and Uber Eats.

In March, Congress created the Paycheck Protection Program, or PPP, to provide low-interest loans to help small businesses stay afloat. But surveys from both the America’s Recovery Fund Coalition as well as Save Small Businesses Coalition showed nearly half of these businesses said their PPP loan was not enough to keep them operative.

Nancy Hoffman Vanyek, president and CEO of the San Fernando Valley Chamber of Commerce, compared PPP toanother form of unemployment that ultimately small businesses use to keep their workforce on their payroll during the coronavirus crisis — particularly businesses like restaurants that are not able to open.

Small businesses are disappearing at a staggering rate, according to Hoffman Vanyek, who doubts 2021 will bring economic recovery.

Small businesses are not only vital to the economy, but they’re important parts of communities.

“We really work with our clients very closely,” said Brian Wisdom, an executive with IT firm Datalinks Networks, “and having that as a small business gives you that opportunity to build those relationships where as a larger business you are treated as a number.”

In mid-September, the San Fernando Valley Chamber met with the Department of Public Health. The chamber is maintaining a website for businesses with the latest updates and information on health orders at sfvresource.com. This website also contains information on business counseling, information on how and where to get loans and grants for your business.

In June 2019, CSUN partnered with the Warbond foundation, founded by Jane Werwand, which supports small to mid-sized business entrepreneurs. Clients involved in the program are welcomed to participate in LA’s Local Business Boost that supports all types of businesses providing individuals access to funding, mentorship and educational resources.

Professor Silvina Bamrungpong directs the Business Honors Program at California State University, Northridge. She advises anyone who aspires to start a business should first focus on developing a sound strategy, while still acquiring the finance skills.

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