WASHINGTON — As the pandemic winds down, many small businesses are still dealing with the aftermath. 


What You Need To Know

  •  A recent study shows that about a third of small retailers can't pay their rent

  •  Additionally, about 46% of businesses with less than $100,000 in annual revenue are one or more months behind on rent

  • Business leaders are asking Congress to offer new programs and resources for small businesses

A recent survey found that nearly a third of small retailers still cannot pay their rent, as the federal government’s small business rescue program is officially out of funding.

“Just because the last two months looked better, that’s not enough to make everything A-OK,” said Martin Garcia, the owner of Gramercy Gift Gallery in San Antonio, Texas. 

Garcia, who opened his business in 2019, is still struggling to get back on his feet. Garcia received two loans of $3800 dollars under the federal Paycheck Protection Program. However, it wasn’t nearly enough.

“The business is at risk. The biggest challenge financially has to do with rent last year,” Garcia explained in an interview with Spectrum News.

Garcia said he was able to pay a portion of the rent every month last year. After a 40% decline in sales from last year, he’s not sure how he’s going to pay what he still owes. 

“Now they are asking for the portion that was not paid, so that’s a chunk of money there,” he said.

Garcia isn’t alone. A recent survey from Small Business Majority found 46% of businesses with less than $100,000 in annual revenue are one or more months behind on rent. Small Business advocates say many businesses were underfunded by the PPP, which has officially run out of money, four weeks before it was scheduled to end. 

“The way the PPP money was disbursed was very uneven. It was based on whether you had an established banking relationship. So, at the end of the day, many businesses did not get as much money as they need,” said John Arensmeyer, CEO and Founder of Small Business Majority.

Arensmeyer is calling on Congress to offer up new programs and resources. Discussions are just beginning on Capitol Hill. 

“We are looking at something that is more long term and looks toward recovery instead of just relief. We know small businesses, particularly those owned by women, entrepreneurs of color and immigrants are still struggling. They need additional relief. They need longer term grant programs targeted to them,” he said in an interview with Spectrum News.

As for Garcia, he said sales and foot traffic at his gift and decor store are on an upward trend. While he has been unable to get additional funding through other federal loan programs, he remains optimistic. 

“Surviving last year and now here, I’m very hopeful and positive about the future. I just need the capital to get back on a growth pattern and just take care of the last remaining pressure,” Garcia said.