Coronavirus Leaves Small Businesses Facing Murky Future

SOMERVILLE, MA — For Rich Whelan, there's no other sport like rowing. The program director of the Gentle Giant Rowing Club said he has seen teenagers team up to cope with their anxiety and depression and the club come together when a fellow rower suffered a fatal heart attack. His community on the water is unlike the football, baseball and basketball teams he was a part of growing up.

"When you're rowing with someone you really have to work together and master it with them," Whelan said. "It's the ultimate team sport and because of that the community forms."

But the public health crisis over the coronavirus has put the future of Whelan's community in limbo. The club, a Somerville-based nonprofit, works with the cities of Somerville and Everett to provide rowing to about 60 high school athletes. Due to school closures, they won't be getting on the water until at least April 27, which is halfway through their season, Whelan said.

The other half of the club's business – the Masters program – had to shut its winter training down early for roughly 70 rowers. The spring session was scheduled to begin March 30. Whelan said the club is now aiming to start in May.

"If everything were normal and we were starting in 1 1/2 weeks, we'd be looking at 25-30 rowers for Masters already registered," Whelan said. "Right now we have four."

The club operates through donations and fees from Masters members. It will refund rowers for the months they have already paid, depending on when they can get back on the water, Whelan said. Meanwhile, the club will continue to pay its coaches.

"Our morning coach is a Ph.D. student, so she definitely needs money to continue her studies and live," Whelan said.

Gentle Giant has been looking into state and federal aid provided to businesses and nonprofits impacted by coronavirus restrictions. These include the Small Business Recovery Loan Fund, which provides up to $75,000 in emergency capital to small businesses and nonprofits in Massachusetts, and the Economic Injury Disaster Loan Program, which gives struggling businesses access to up to $2 million in emergency loans.

The club is dipping into its savings for a new dock to pay its coaches. Depending on how long the crisis lasts, that might not be sustainable, but Whelan said the club has been smart enough with its budgeting to stay afloat.

"One debate that we have is if we are eligible for a loan, do we want to take out a loan?" Whelan told Patch.

Steve DeBenedictis, owner of VIP Men's Hairstyling in Medford, believes many small businesses will struggle to pay back those loans. He looked into state resources when Medford and other nearby communities issued an order this week to shut down businesses offering non-essential personal care services, which included his barber shop.

The Small Business Recovery Loan Fund offers loans at 3 percent interest over 36 months, with the first six months payment-free, but DeBenedictis said even those terms will hinder businesses trying to get back on their feet after the crisis ends.

"If people are coming back, depending on how long we're all out, a lot of people are going to have to restart their business," DeBenedictis said. "How are people over 30 months going to be able to pay back what they borrowed when they aren't able to work?"

VIP Men's Hairstyling has been in Medford Square for 55 years. DeBenedictis, who has been there for 30 years, said he's "extremely concerned" about the future of the business. He will not collect commission from the other two barbers in his shop and will be unable to earn income himself for a minimum of two weeks.

DeBenedictis criticized the city for shuttering personal-care businesses, which he said he heard about from a friend before he received a message from the mayor.

Leaders in Medford, Malden, Wakefield, Melrose and Winchester closed businesses such as hair salons, barbershops, nail salons, tattoo parlors and massage parlors on Wednesday.

"As community leaders, we are faced with incredibly difficult decisions impacting our community, its residents, and its businesses, and each of our decisions are being weighed heavily before implementation," Medford Mayor Breanna Lungo-Koehn said in a statement about the closures.

"We must take bold action now if we want to protect our community in the long run," she continued. "By limiting the number of places where groups of people can gather, and where the virus can easily spread on common surfaces, we're hoping to do our part to slow the spread of COVID-19, flatten the curve in terms of increases in cases, and help our health care facilities in their ability to serve those most in need of critical care."

DeBenedictis said the city did not communicate with business owners before making that decision. He worries that because closures are being enacted in some communities and not others, businesses could have to fight to get their customers back.

Since Wednesday, other nearby communities like Arlington and Somerville have closed personal care services.

"I have incredibly loyal customers, relationships with customers for years," DeBenedictis said. "A lot of people don't have that luxury."

The coronavirus has hit almost every facet of daily life in Massachusetts. Supermarkets and convenience stores are among the only businesses that remain open. Restaurants are takeout and delivery only. Weddings have been postponed. Construction has ground to a halt.

On Monday alone, 20,000 Massachusetts residents filed for unemployment, more than the total number who filed in all of February. Gov. Charlie Baker has waived the normal one-week waiting period for unemployment benefits for job losses related to the new virus, but it's unclear if the state has the ability to process all the new applications.

Even businesses that can weather the storm face a grim reality.

"Whatever revenue is lost, is lost," DeBenedictis said. "It's not coming back."