Many small retail business owners are really struggling right now. According to a new report by Bisnow, 34% of small retail businesses were unable to make their rent in April. This number was up 6% from February. Small store is defined as a retail under four thousand square feet of retail space and is not one of a chain of stores. (source)
In fact, 73% of retail small businesses are experiencing negative impacts to their business caused by supply chain issues, and more than a third of these retailers (35%) report significant negative impacts.
What Can We Do About This Problem?
So the best thing you can do is support any local small retail businesses right now as many are struggling. There are 28 million small businesses in the U.S. (source) and when small businesses struggle, families struggle.
If you own a small retail business, I have compiled together some helpful resources that may help you during this challenging time.
Helpful Resources For Small Retail Business Owners
Well, you can seek some financial support. You might be surprised when you see what options are available right now. Here are some options from the Small Business Association that you might find helpful.
First are 7(a) loans. 7(a) Loans are a group of SBA loans which guarantee portions of the total amount, cap interest rates, and limit fees.
Second, are 504 loans. These loans are long-term, fixed-rate financing to purchase or repair real estate, equipment, machinery, or other assets.
Lastly are microloans. This form of loan is SBA's smallest loan program, providing $50,000 or less to help businesses start up and expand.
The state of California is also providing ways to support your business. For example, There is an Economic Development Rate Program that gives special utility discounts for businesses that require high-energy loads to operate or continue operating in California. For more info, click here to submit a request.
The California Competes Tax Credit (CCTC) is an income tax credit available to businesses that want to locate in California or stay and grow in California. Businesses of any industry, size, or location receive over $180 million available in tax credits each year. Visit here for more information.
As always, the availability of funds for each program varies depending on demand. If you're interested, please apply as soon as possible.