Businesses look to government loan programs to stay solvent

LACONIA — Restaurateur Reuben Bassett is one of many local business people who have applied for money through massive federal programs to deliver emergency relief for small businesses gutted by the coronavirus pandemic.

He and other downtown entrepreneurs such as Breanna Neal, owner of Polished & Proper Barbershop and Shave Parlor, hope that help arrives soon.

The survival of many businesses will depend on just how long the pandemic lasts, Bassett said.

“If it were resolved tomorrow you could probably argue that with the government assistance, you’d be made whole,” he said. “But with restaurants it’s all about cash flow management. You get into a comfortable spot and if you lose your income or it’s cut in half, you feel it pretty quickly.

“It’s too early to tell how we'll come out of this because we don't know how long it will last. At Local (Eatery), if I don't get back to having good summer business, who knows what it will look like.”

Bassett closed his Burrito Me in Plymouth, but is keeping its sister store open for takeout downtown. His Local Eatery and Wayfarer Coffee Roasters are also open for food-to-go.

But his businesses are taking a big financial hit. He has furloughed some employees. Others are not comfortable working during the pandemic.

The Small Business Administration is offering Economic Injury Disaster Loans, which are billed as having a quick turnaround time and can include a $10,000 grant for working capital, and Paycheck Protection Loans, which are given through local banks and can be used to cover eight weeks of payroll and expenses without having to be paid back.

Bassett said he has applied for both types of assistance. He started the application process early last week and has not heard back.

Neal closed her barber shop on March 18.

“I’d be lying if I said we’re totally comfortable,” she said. “I applied for an SBA loan, but I don’t know how long it will take.”

Barbers rent space at her shop.

“I’m choosing to not charge them,” she said. “I know they can’t pay, but the shop rent still falls on me. I can cover for April, but May is a question mark.”

Many downtown shop owners will look to landlords to be flexible about the rent.

“If the landlord is not willing to defer it, that’s where the buck stops,” she said.

An emergency order by the governor prevents evictions at this time, but many people could find it difficult to pay back rent when the order expires, Neal said.

With her business closed, Neal has been busy cleaning and making sure her Corgi dog is well exercised.

Neal’s barber shop and Bassett’s downtown restaurants are a short walk from a key regional banking institution, the Bank of New Hampshire.

Paul Falvey, the bank’s president and chief executive officer, said there has been a lot of interest in Paycheck Protection Loans and his employees have been diligently working on them.

“We had a whole group working from home and the operations center Saturday and Sunday getting it done,” he said. “It’s a good opportunity for us to work for our customers.

”We will fund much of these loans in April, that’s the expectation.”