What We Learned from Staten Island Businesses

In May, the Staten Island Chamber of Commerce distributed a survey to gauge the effect that COVID-19 is having on our members. The survey focused on the ability of small businesses to obtain loans & grants and examined how the pandemic affected renters and property owners. Results display that the majority of respondents were able to obtain funding and remain open during the crisis. However, survey findings confirmed that tenants are increasingly unable to pay rent while landlords are struggling to pay mortgages.  

The survey garnered responses from over 20% of our membership and represented a large variety of sectors, including retail, real estate, food service, contractors, health & wellness, and professional services. Small businesses with 5 employees or less - including independent contractors – accounted for 48% of the respondents, 31% of respondents had 6 to 20 employees, and 21% indicated that they had 21 or more employees. 

Business sectors include energy, food, healthcare, retail, and real estate, among others.

On average, businesses saw a $70,000 loss in March and a $100,000 loss in April. 83% of respondents indicated that they applied for at least one grant or loan. Of those that applied for funding, 90% applied for the Paycheck Protection Program (PPP) and 50% applied for the Economic Injury Disaster Loan (EIDL). 89% of those who applied for funding successfully received it, largely during the second round of funding. On average, applicants received nearly $50,000 in funding. This is certainly positive, but still falls well short of their average reported losses.  

The majority of businesses surveyed applied for loans.

Nearly 61% of applicants received funding during the second round of loan applications.

The majority of the respondents are tenants, and most experienced significant change in their ability to pay rent in April and May. According to the survey, tenants who were able to make their rent declined from 73% to 64% in April to May, respectively. During the two-month span, the majority of tenants did not ask for rent concession.  

Applicants received SBA funding from a wide variety of banks.

As for the landlords, 67% of the respondents indicated that they negotiated new rental terms with their tenants. However, an alarming number of landlords (39%) stated that they were unable to make mortgage payments during the crisis. 

Finally, nearly 70% of the respondents indicated that their business did not need to cease operations following New York on PAUSE. However, a majority believe that, in order to remain profitable, they need to operate with at least 75% capacity. Of the 30% of respondents that remain closed or partially operational, most indicated that three months would be the maximum amount of time they could remain closed before having to close permanently. 

In order to remain profitable, most businesses believe they need to operate with at least 75% capacity.

These results do not account for the month of May. If trends continue and businesses are not able to reopen, small businesses will increasingly encounter financial difficulty. Governor Cuomo’s announcement last Friday that New York City is expected to begin phase one of reopening on Monday, June 8, is not enough, and the planned phased approach may seal the fate of many merchants.

In response, the Staten Island Chamber of Commerce partnered with nearly a dozen business groups, business improvement districts, and professional service associations to call for a swift and responsible reopening of Staten Island Businesses. A petition addressed to Governor Cuomo and Mayor de Blasio, entitled “Reopen Staten Island Businesses Now,” collected more than 1,400 signatures in 4 days.

"Small businesses in New York City are the greatest problem solvers in the world," the petition states. “Since Governor Cuomo issued his 'New York State on PAUSE' executive order that began on March 22, we have had ample time to think about how we can best prepare to operate safely in this new environment. We are prepared to take every precaution necessary to make our employees and customers feel comfortable and safe."