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DeKalb Times

Thursday, November 21, 2024

Arellano warns road ahead will be rocky for small businesses: 'They now have nothing to survive on'

Journatic

Mayor Liandro "Li" Arenallo | File photo

Mayor Liandro "Li" Arenallo | File photo

Dixon Mayor Liandro “Li” Arellano wonders how the state’s small business industry can rebound from all the damage inflicted on it stemming from the COVID-19 pandemic.

“It’s really going to be hard to come back from,” Arellano told the DeKalb Times. “As I’ve said before, the governor’s actions put parts of the state under mitigation before it was called for, forcing businesses to burn through reserves to the point they now have nothing to survive on when the governor is still enacting restrictions.”

The impact has been undeniable, with a new TrackTheRecovery.org analysis finding that since the beginning of the year the state has lost more than a third of all small its businesses. Overall, data compiled by Harvard and Brown universities and the Bill and Melinda Gates Foundation shows as of Nov. 16, 2020 the number of small businesses open dipped by some 35.4 percent compared to January of this year with the industry also experiencing a revenue decline topping 39% since January.

“The governor needs to realize that most small businesses don’t carry around the same amounts of capital as other businesses, so being forced to close or operate at reduced capacity for months at a time makes all the difference for them,” Arellano added. “I think he’s started to tweak his plan but its come months into his mitigations and a lot of the damage has already been done.”

National Federation of Independent Business Illinois State Director Mark Grant points out that running a small business in Illinois was already quite the challenge even before the pandemic hit, given such factors as higher property taxes and workers’ compensation.

Arellano argues the hard job of trying to save the industry and keep small businesses afloat is just beginning.

“I think local and state leaders will have to put a lot of thought into restarting things in a way that helps businesses hit the hardest,” he said. “Things like directing economic incentives to businesses trying to make a comeback instead of new launches. I think we will need a specific plan to those that have been hit the hardest.”