March 27, 2020 by Carol Britton Meyer
Downtown merchants, forced to close their shops under a statewide order by Gov. Charlie Baker due to the coronavirus threat, are finding new ways to do business while at the same time reaching out to local legislators to ask for their help.
While the downtown stores remain closed, most continue to operate through online sales channels and by offering free delivery services. Purchasing gift cards also helps these businesses during this time.
Although trying to remain optimistic, shop owners' concerns about the future of their businesses are very real.
“Many of our customers love our little town, the quaint shops, and the opportunity to socialize, all of which will disappear if we cannot weather this situation," said Kellie Dernier, co-owner of Carolann's with her daughter, Jen. The shop has been in business for 35 years.
Downtown businesses are an integral part of the fabric of the community. "We support our town and give back to the community. We donate money to put our company logos on Little League hats and basketball jerseys; we donate to school PTOs, Firemen’s balls, police K-9 support, and school music programs," said Tryst owner Kelly Stuart. "We do these things because we care and because we are invested."
Dernier and Stuart -- on behalf of several small businesses in downtown Hingham -- were among the many downtown merchants who wrote letters to Sen. Patrick O'Connor and Rep. Joan Meschino requesting financial relief during this challenging time.
“According to national statistics, seven out of 10 retailers report not having enough cash on hand to handle this type of crisis," Hingham Downtown Association Executive Director Lynn Barclay told the Hingham Anchor. “The economical effects of this situation are real, and these letters are a testament to how bleak it is for our merchants.”
Beginning March 16, in response to COVID-19, businesses in downtown Hingham began closing their doors in support of social distancing to protect the health of their staff, families, and the community.
"It was with heavy hearts, anxiety, and fear that we made these painful decisions. We were forced to lay off staff -- some of whom had been with us for five-plus years," Stuart wrote in her letter. "I personally laid off 15 women, half of whom are single mothers. These decisions were heartbreaking."
'Left in limbo'
Stuart also explained how she and other downtown business owners feel as if they are "left in limbo" in terms of guidance or a plan for both enduring the coming weeks and possibly months and also in terms of how they might eventually resume business. "When do we reopen? When do we rehire? When do we thrive again? When do we walk into our empty stores again? How will we pay our bills? Will we lose our homes? Will we lose our businesses? How do we pay back rent? How will we get past this and become a successful small business community again?" were concerns Stuart voiced in her letter.
She explained the financial challenges often faced by small businesses while at the same time supporting the community's many organizations and groups. "We care about this little town and the people in it, and we love our community," she said.
Stuart went on to say that downtown Hingham businesses need support getting through these unprecedented times.
"We need help that comes in the form of relief and grants as opposed to loans that will need to be paid back after suffering such financial setbacks and hardship," Stuart wrote. "To try to reopen our stores while strapped with so much debt will be an uphill battle many of us will not overcome."
Stuart is requesting that O'Connor and Meschino "advocate for small business right now. We need you to be our voice. We need you to get us funding so we can resume business without additional debt. We need to see our community and businesses thrive, and we need your assistance, and help from the Commonwealth of Massachusetts. Now. We need answers that we are currently not getting. We need your guidance thru this crisis. Not one business owner in downtown Hingham wants to close their doors and walk away. We want to reopen when it is safe, but we want more than anything to reopen and be back to what business was before March 16, 2020."
'We love investing in the community'
Dernier's letter to Meschino and O'Connor was equally compelling. "I am having a difficult time writing this email as I never thought I would be asking for help to save my small business, which is just one among all the wonderful businesses that make up our quaint litte town," she wrote.
"We not only sell merchandise for the whole family (a mini department store), but we also support many community events including local charities, school fundraisers, and little league as we love investing in the community," Dernier said.
She noted, as did Stuart, that this unprecedented event could permanently close many of the small downtown businesses as merchants grapple with how to pay their mounting monthly obligations.
"We need funding without incurring additional debt, which could stifle our recovery and ultimately close our businesses," Dernier said. "I want to thank you in advance for being our voice, advocating for financial aid, and providing direction as to how to get our businesses up and thriving [as they were] before the COVID-19 paralyzes [the downtown shops]."
Frustration over loan application process
RSVP owner Judy Varney contacted Meschino's office on Tuesday, reaching out because she had tried unsuccessfully to submit an application through the state Small Business Recovery Loan Fund program.
"Last week, Gov. Baker announced that this $10 million fund was over-subscribed, but that an additional $10 million would be allocated," Varney told the Hingham Anchor. "When I tried to apply on Monday, the fund was no longer taking applications, due to the availability of a federal Small Business Administration loan program." That's when she decided to contact Meschino.
While her office got right back to Varney, which she appreciated, the news wasn't good -- that the additional $10 million was to cover those applications already in the pipeline, but no new ones.
On top of that, Varney's many attempts to apply for the federal SBA loan program were also unsuccessful, due to website delays or no available access.
"With the speed at which everything is changing, I feel that window closed very quickly, and I wish I'd had the opportunity to apply," Varney said.
Given the current stalemate at the federal level (as of Friday) to approve a recovery package, Varney wishes that Massachusetts would do more to offer small businesses some relief. "I know many people feel that a bailout, rather than a loan, is the way to go, and I don't disagree with this," she said. "However, I'd take the deferred interest loan now to help with cash flow. Not knowing how long we will be closed is the issue, and without revenue our savings will deplete very quickly."
Earlier challenges overcome
Barclay noted that downtown businesses have managed to overcome many challenges over the years -- including the Greenbush commuter rail project through the heart of downtown Hingham, competition from the redevelopment of the Hingham Shipyard and the Derby Street Shops, and the 2015 collapse of the Lincoln Building, which has since been rebuilt after being a vacant lot for an extensive period of time.
However, said Barclay, "There’s no denying it — the COVID-19 crisis is a once-in-a-lifetime event. The overall timeline and economical impact of this disruption remains uncertain. How we respond now and once we are back to business as usual will determine how our merchants recover."
As a reminder, purchasing gift cards from downtown shops and restaurants can help these small businesses get through these stormy times. "I would like to thank our community for all the support that has been shown to us thus far, and we look forward to and need your continued support when the shops are able to open for business again," Barclay said.
Gift cards from your favorite merchants may be purchased at https://discoverhingham.com/give/
Thank you so much for posting this! I would like to add that people can purchase gift cards to give to first responders who are scared and exhausted and very worthy of a treat!