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| For Small-Business Owners, Hard Decisions Become Personal | For Small-Business Owners, Hard Decisions Become Personal |
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| Meganne Wecker got a sense in January of the economic blow coming to her family’s furniture business from her suppliers in China. | Meganne Wecker got a sense in January of the economic blow coming to her family’s furniture business from her suppliers in China. |
| Ms. Wecker, the president of Skyline Furniture, a 74-year-old manufacturer in the Chicago suburbs, heard from her partners in China about the economic devastation caused by the coronavirus outbreak. Skyline, which has about $50 million in annual revenue, sells to retailers like Wayfair and Target, and the supply-chain loss could deliver a huge blow. | Ms. Wecker, the president of Skyline Furniture, a 74-year-old manufacturer in the Chicago suburbs, heard from her partners in China about the economic devastation caused by the coronavirus outbreak. Skyline, which has about $50 million in annual revenue, sells to retailers like Wayfair and Target, and the supply-chain loss could deliver a huge blow. |
| She prepared herself for the worst, but it was still gut wrenching when she and her father, Ted Wecker, Skyline’s chief executive, had to shut down the company as the U.S. economy came to a lurching halt. They decided in mid-March to close both factories and stop paying themselves, but they continued to pay all 300 employees for two weeks. | She prepared herself for the worst, but it was still gut wrenching when she and her father, Ted Wecker, Skyline’s chief executive, had to shut down the company as the U.S. economy came to a lurching halt. They decided in mid-March to close both factories and stop paying themselves, but they continued to pay all 300 employees for two weeks. |
| But time is running short, and Ms. Wecker, like other small-business owners, must determine how to keep her company afloat as stores and restaurants are shuttered, manufacturing comes to a standstill and people are told to stay home. Some choices — pay cuts, furloughs, layoffs — could seriously harm employees who have worked for them for years. | But time is running short, and Ms. Wecker, like other small-business owners, must determine how to keep her company afloat as stores and restaurants are shuttered, manufacturing comes to a standstill and people are told to stay home. Some choices — pay cuts, furloughs, layoffs — could seriously harm employees who have worked for them for years. |
| The damage is already becoming apparent: More than 6.6 million people filed new claims for unemployment benefits last week, the Labor Department said Thursday, surpassing the record 3.28 million claims from the week before. | The damage is already becoming apparent: More than 6.6 million people filed new claims for unemployment benefits last week, the Labor Department said Thursday, surpassing the record 3.28 million claims from the week before. |
| For Skyline, it’s unclear when the State of Illinois will let it reopen. “Our top two priorities were the health and safety of our employees and how we are going to come out of this with a business that’s still operating and intact,” Ms. Wecker said. “We’re going to try to understand all that is available with packages and loans.” | For Skyline, it’s unclear when the State of Illinois will let it reopen. “Our top two priorities were the health and safety of our employees and how we are going to come out of this with a business that’s still operating and intact,” Ms. Wecker said. “We’re going to try to understand all that is available with packages and loans.” |
| She is hopeful that she can get federal funds through a relief effort known as the paycheck protection program to pay most of her employees this month. | She is hopeful that she can get federal funds through a relief effort known as the paycheck protection program to pay most of her employees this month. |
| Maneuvering through the crisis is much harder for smaller businesses, which cannot afford the raft of advisers, lawyers and accountants that large companies have to guide them. | Maneuvering through the crisis is much harder for smaller businesses, which cannot afford the raft of advisers, lawyers and accountants that large companies have to guide them. |
| At the end of last week, the chief executives of Visa and Morgan Stanley publicly pledged not to lay off any employees this year. That’s reassuring for the 77,000 workers at the two firms. | At the end of last week, the chief executives of Visa and Morgan Stanley publicly pledged not to lay off any employees this year. That’s reassuring for the 77,000 workers at the two firms. |
| But the gesture was comparatively easy for finance companies, which have cash reserves, lines of credit and an ability to borrow more money. They also have businesses that will generate enormous fees in the downturn. | But the gesture was comparatively easy for finance companies, which have cash reserves, lines of credit and an ability to borrow more money. They also have businesses that will generate enormous fees in the downturn. |
| The retail industry, on the other hand, was struggling well before the coronavirus pandemic forced retailers to shutter stores nationwide. Companies like Macy’s and Gap, which combined laid off more than 200,000 employees this week, lack the same cushion and cannot generate revenue with their stores closed. | The retail industry, on the other hand, was struggling well before the coronavirus pandemic forced retailers to shutter stores nationwide. Companies like Macy’s and Gap, which combined laid off more than 200,000 employees this week, lack the same cushion and cannot generate revenue with their stores closed. |
| For small-business owners, keeping everyone employed may not be possible. But they will also have to determine what it would take for the company to endure the economic slowdown and emerge after the crisis as a viable business. | For small-business owners, keeping everyone employed may not be possible. But they will also have to determine what it would take for the company to endure the economic slowdown and emerge after the crisis as a viable business. |
| Even entrepreneurs who have the personal wealth to weather the pandemic are contemplating what their business will look like in a different marketplace. | Even entrepreneurs who have the personal wealth to weather the pandemic are contemplating what their business will look like in a different marketplace. |
| Bob Parsons, the founder of GoDaddy, the internet domain name company, said he was trying to manage a steep drop in income. | Bob Parsons, the founder of GoDaddy, the internet domain name company, said he was trying to manage a steep drop in income. |
| He had parlayed the billions he made into 18 businesses with 900 employees, but he said most everything was shuttered, including his golf course, the Scottsdale National Golf Club in Arizona, and his Harley-Davidson dealership. His holding company, YAM Worldwide, includes a private lending arm and 2.1 million square feet of commercial real estate in Phoenix. | He had parlayed the billions he made into 18 businesses with 900 employees, but he said most everything was shuttered, including his golf course, the Scottsdale National Golf Club in Arizona, and his Harley-Davidson dealership. His holding company, YAM Worldwide, includes a private lending arm and 2.1 million square feet of commercial real estate in Phoenix. |
| “One of our biggest deals is we own shopping malls,” he said. “That’s a lot of restaurants, nail shops, fitness centers, and not a lot of rent is going to come in from them.” | “One of our biggest deals is we own shopping malls,” he said. “That’s a lot of restaurants, nail shops, fitness centers, and not a lot of rent is going to come in from them.” |
| His goal is to keep most of his 900 employees employed through April and re-evaluate after that. | His goal is to keep most of his 900 employees employed through April and re-evaluate after that. |
| Many business owners are struggling with tough decisions on a personal level, said Pierre duPont, a partner at the financial services firm Cerity Partners, where he has many business owners as clients. “It’s just not about the numbers,” he said. “It’s about the people and the relationships that make the business whole.” | Many business owners are struggling with tough decisions on a personal level, said Pierre duPont, a partner at the financial services firm Cerity Partners, where he has many business owners as clients. “It’s just not about the numbers,” he said. “It’s about the people and the relationships that make the business whole.” |
| Ms. Wecker said Skyline employed some families that had worked there for many years. “We had a woman who celebrated her 50th year working here,” she said. “Her son and grandson work for us, too.” | Ms. Wecker said Skyline employed some families that had worked there for many years. “We had a woman who celebrated her 50th year working here,” she said. “Her son and grandson work for us, too.” |
| Brian Ascher, partner at Venrock, a venture capital firm, recommends pulling off the Band-Aid quickly. “If you have to cut, the goal is to cut once, cut deeply and do it quickly,” he said. “Then you have to treat the remaining troops really well, so they have psychological safety.” | Brian Ascher, partner at Venrock, a venture capital firm, recommends pulling off the Band-Aid quickly. “If you have to cut, the goal is to cut once, cut deeply and do it quickly,” he said. “Then you have to treat the remaining troops really well, so they have psychological safety.” |
| Rent is an area ripe for renegotiation. Mr. Parsons is expecting less rent from his tenants, and Mr. Ascher is encouraging companies he’s invested in to ask for rent reductions. He has seen landlords cut rents by 10 percent to 20 percent but also up to 50 percent. | Rent is an area ripe for renegotiation. Mr. Parsons is expecting less rent from his tenants, and Mr. Ascher is encouraging companies he’s invested in to ask for rent reductions. He has seen landlords cut rents by 10 percent to 20 percent but also up to 50 percent. |
| Another strategy for business owners is to stretch the cash they have. Companies with 18 months of cash are in the best position, and those with 12 months should try to stretch it to 18 months, Mr. Ascher said. Companies with less than 12 months are going to struggle. | Another strategy for business owners is to stretch the cash they have. Companies with 18 months of cash are in the best position, and those with 12 months should try to stretch it to 18 months, Mr. Ascher said. Companies with less than 12 months are going to struggle. |
| But they must spend the cash wisely, said Bob Buchanan, head of business transition planning at Wells Fargo Private Bank. | But they must spend the cash wisely, said Bob Buchanan, head of business transition planning at Wells Fargo Private Bank. |
| “If they survive in the short run but their decisions put them in a bad position, it doesn’t matter,” he said. “If you push off paying your suppliers, will they still be in business in six months from now? Many people haven’t thought through that.” | “If they survive in the short run but their decisions put them in a bad position, it doesn’t matter,” he said. “If you push off paying your suppliers, will they still be in business in six months from now? Many people haven’t thought through that.” |
| For smaller companies without access to credit lines, surviving until the arrival of any stimulus money will be difficult. Research from Next Street, an advisory firm focused on small businesses, found that 25 percent cannot make it past 30 days and another 25 percent do not have enough cash to get past 90 days. The Small Business Administration loans that forgive expenses like payroll may not arrive quickly enough to help. | For smaller companies without access to credit lines, surviving until the arrival of any stimulus money will be difficult. Research from Next Street, an advisory firm focused on small businesses, found that 25 percent cannot make it past 30 days and another 25 percent do not have enough cash to get past 90 days. The Small Business Administration loans that forgive expenses like payroll may not arrive quickly enough to help. |
| “You’re going to see a lot of press that the money is going out the door, but any funding will take three weeks from application,” said Michael Roth, managing partner at Next Street. And given the rush of applications, banks will put a priority on their existing clients. | “You’re going to see a lot of press that the money is going out the door, but any funding will take three weeks from application,” said Michael Roth, managing partner at Next Street. And given the rush of applications, banks will put a priority on their existing clients. |
| Updated June 22, 2020 | |
| A commentary published this month on the website of the British Journal of Sports Medicine points out that covering your face during exercise “comes with issues of potential breathing restriction and discomfort” and requires “balancing benefits versus possible adverse events.” Masks do alter exercise, says Cedric X. Bryant, the president and chief science officer of the American Council on Exercise, a nonprofit organization that funds exercise research and certifies fitness professionals. “In my personal experience,” he says, “heart rates are higher at the same relative intensity when you wear a mask.” Some people also could experience lightheadedness during familiar workouts while masked, says Len Kravitz, a professor of exercise science at the University of New Mexico. | |
| The steroid, dexamethasone, is the first treatment shown to reduce mortality in severely ill patients, according to scientists in Britain. The drug appears to reduce inflammation caused by the immune system, protecting the tissues. In the study, dexamethasone reduced deaths of patients on ventilators by one-third, and deaths of patients on oxygen by one-fifth. | The steroid, dexamethasone, is the first treatment shown to reduce mortality in severely ill patients, according to scientists in Britain. The drug appears to reduce inflammation caused by the immune system, protecting the tissues. In the study, dexamethasone reduced deaths of patients on ventilators by one-third, and deaths of patients on oxygen by one-fifth. |
| The coronavirus emergency relief package gives many American workers paid leave if they need to take time off because of the virus. It gives qualified workers two weeks of paid sick leave if they are ill, quarantined or seeking diagnosis or preventive care for coronavirus, or if they are caring for sick family members. It gives 12 weeks of paid leave to people caring for children whose schools are closed or whose child care provider is unavailable because of the coronavirus. It is the first time the United States has had widespread federally mandated paid leave, and includes people who don’t typically get such benefits, like part-time and gig economy workers. But the measure excludes at least half of private-sector workers, including those at the country’s largest employers, and gives small employers significant leeway to deny leave. | The coronavirus emergency relief package gives many American workers paid leave if they need to take time off because of the virus. It gives qualified workers two weeks of paid sick leave if they are ill, quarantined or seeking diagnosis or preventive care for coronavirus, or if they are caring for sick family members. It gives 12 weeks of paid leave to people caring for children whose schools are closed or whose child care provider is unavailable because of the coronavirus. It is the first time the United States has had widespread federally mandated paid leave, and includes people who don’t typically get such benefits, like part-time and gig economy workers. But the measure excludes at least half of private-sector workers, including those at the country’s largest employers, and gives small employers significant leeway to deny leave. |
| So far, the evidence seems to show it does. A widely cited paper published in April suggests that people are most infectious about two days before the onset of coronavirus symptoms and estimated that 44 percent of new infections were a result of transmission from people who were not yet showing symptoms. Recently, a top expert at the World Health Organization stated that transmission of the coronavirus by people who did not have symptoms was “very rare,” but she later walked back that statement. | So far, the evidence seems to show it does. A widely cited paper published in April suggests that people are most infectious about two days before the onset of coronavirus symptoms and estimated that 44 percent of new infections were a result of transmission from people who were not yet showing symptoms. Recently, a top expert at the World Health Organization stated that transmission of the coronavirus by people who did not have symptoms was “very rare,” but she later walked back that statement. |
| Touching contaminated objects and then infecting ourselves with the germs is not typically how the virus spreads. But it can happen. A number of studies of flu, rhinovirus, coronavirus and other microbes have shown that respiratory illnesses, including the new coronavirus, can spread by touching contaminated surfaces, particularly in places like day care centers, offices and hospitals. But a long chain of events has to happen for the disease to spread that way. The best way to protect yourself from coronavirus — whether it’s surface transmission or close human contact — is still social distancing, washing your hands, not touching your face and wearing masks. | Touching contaminated objects and then infecting ourselves with the germs is not typically how the virus spreads. But it can happen. A number of studies of flu, rhinovirus, coronavirus and other microbes have shown that respiratory illnesses, including the new coronavirus, can spread by touching contaminated surfaces, particularly in places like day care centers, offices and hospitals. But a long chain of events has to happen for the disease to spread that way. The best way to protect yourself from coronavirus — whether it’s surface transmission or close human contact — is still social distancing, washing your hands, not touching your face and wearing masks. |
| A study by European scientists is the first to document a strong statistical link between genetic variations and Covid-19, the illness caused by the coronavirus. Having Type A blood was linked to a 50 percent increase in the likelihood that a patient would need to get oxygen or to go on a ventilator, according to the new study. | A study by European scientists is the first to document a strong statistical link between genetic variations and Covid-19, the illness caused by the coronavirus. Having Type A blood was linked to a 50 percent increase in the likelihood that a patient would need to get oxygen or to go on a ventilator, according to the new study. |
| The unemployment rate fell to 13.3 percent in May, the Labor Department said on June 5, an unexpected improvement in the nation’s job market as hiring rebounded faster than economists expected. Economists had forecast the unemployment rate to increase to as much as 20 percent, after it hit 14.7 percent in April, which was the highest since the government began keeping official statistics after World War II. But the unemployment rate dipped instead, with employers adding 2.5 million jobs, after more than 20 million jobs were lost in April. | The unemployment rate fell to 13.3 percent in May, the Labor Department said on June 5, an unexpected improvement in the nation’s job market as hiring rebounded faster than economists expected. Economists had forecast the unemployment rate to increase to as much as 20 percent, after it hit 14.7 percent in April, which was the highest since the government began keeping official statistics after World War II. But the unemployment rate dipped instead, with employers adding 2.5 million jobs, after more than 20 million jobs were lost in April. |
| States are reopening bit by bit. This means that more public spaces are available for use and more and more businesses are being allowed to open again. The federal government is largely leaving the decision up to states, and some state leaders are leaving the decision up to local authorities. Even if you aren’t being told to stay at home, it’s still a good idea to limit trips outside and your interaction with other people. | States are reopening bit by bit. This means that more public spaces are available for use and more and more businesses are being allowed to open again. The federal government is largely leaving the decision up to states, and some state leaders are leaving the decision up to local authorities. Even if you aren’t being told to stay at home, it’s still a good idea to limit trips outside and your interaction with other people. |
| Common symptoms include fever, a dry cough, fatigue and difficulty breathing or shortness of breath. Some of these symptoms overlap with those of the flu, making detection difficult, but runny noses and stuffy sinuses are less common. The C.D.C. has also added chills, muscle pain, sore throat, headache and a new loss of the sense of taste or smell as symptoms to look out for. Most people fall ill five to seven days after exposure, but symptoms may appear in as few as two days or as many as 14 days. | Common symptoms include fever, a dry cough, fatigue and difficulty breathing or shortness of breath. Some of these symptoms overlap with those of the flu, making detection difficult, but runny noses and stuffy sinuses are less common. The C.D.C. has also added chills, muscle pain, sore throat, headache and a new loss of the sense of taste or smell as symptoms to look out for. Most people fall ill five to seven days after exposure, but symptoms may appear in as few as two days or as many as 14 days. |
| If air travel is unavoidable, there are some steps you can take to protect yourself. Most important: Wash your hands often, and stop touching your face. If possible, choose a window seat. A study from Emory University found that during flu season, the safest place to sit on a plane is by a window, as people sitting in window seats had less contact with potentially sick people. Disinfect hard surfaces. When you get to your seat and your hands are clean, use disinfecting wipes to clean the hard surfaces at your seat like the head and arm rest, the seatbelt buckle, the remote, screen, seat back pocket and the tray table. If the seat is hard and nonporous or leather or pleather, you can wipe that down, too. (Using wipes on upholstered seats could lead to a wet seat and spreading of germs rather than killing them.) | If air travel is unavoidable, there are some steps you can take to protect yourself. Most important: Wash your hands often, and stop touching your face. If possible, choose a window seat. A study from Emory University found that during flu season, the safest place to sit on a plane is by a window, as people sitting in window seats had less contact with potentially sick people. Disinfect hard surfaces. When you get to your seat and your hands are clean, use disinfecting wipes to clean the hard surfaces at your seat like the head and arm rest, the seatbelt buckle, the remote, screen, seat back pocket and the tray table. If the seat is hard and nonporous or leather or pleather, you can wipe that down, too. (Using wipes on upholstered seats could lead to a wet seat and spreading of germs rather than killing them.) |
| If you’ve been exposed to the coronavirus or think you have, and have a fever or symptoms like a cough or difficulty breathing, call a doctor. They should give you advice on whether you should be tested, how to get tested, and how to seek medical treatment without potentially infecting or exposing others. | If you’ve been exposed to the coronavirus or think you have, and have a fever or symptoms like a cough or difficulty breathing, call a doctor. They should give you advice on whether you should be tested, how to get tested, and how to seek medical treatment without potentially infecting or exposing others. |
| If you’re sick and you think you’ve been exposed to the new coronavirus, the C.D.C. recommends that you call your healthcare provider and explain your symptoms and fears. They will decide if you need to be tested. Keep in mind that there’s a chance — because of a lack of testing kits or because you’re asymptomatic, for instance — you won’t be able to get tested. | If you’re sick and you think you’ve been exposed to the new coronavirus, the C.D.C. recommends that you call your healthcare provider and explain your symptoms and fears. They will decide if you need to be tested. Keep in mind that there’s a chance — because of a lack of testing kits or because you’re asymptomatic, for instance — you won’t be able to get tested. |
| “It’s not going to real small business, the businesses that people see in their communities,” he said. “Those small businesses are not going to get it for four to six months.” | “It’s not going to real small business, the businesses that people see in their communities,” he said. “Those small businesses are not going to get it for four to six months.” |
| He pointed out that the lenders accredited through the Small Business Administration had never handled more than $30 billion in a year; they’re now being asked to process $350 billion in three months, more than 40 times the volume. | He pointed out that the lenders accredited through the Small Business Administration had never handled more than $30 billion in a year; they’re now being asked to process $350 billion in three months, more than 40 times the volume. |
| There is one source of quick cash: The S.B.A. is offering $10,000 grants through its economic injury disaster loan program. Applying for one also puts a business in line for a loan through the same program, said Clint Coons, founder of Anderson Advisors. | There is one source of quick cash: The S.B.A. is offering $10,000 grants through its economic injury disaster loan program. Applying for one also puts a business in line for a loan through the same program, said Clint Coons, founder of Anderson Advisors. |
| “There are opportunities out there to save your business,” Mr. Coons said. “But people think it’s more difficult than it is to apply.” | “There are opportunities out there to save your business,” Mr. Coons said. “But people think it’s more difficult than it is to apply.” |
| If there’s a silver lining for private businesses, several venture capitalists noted that recessions spur innovation. | If there’s a silver lining for private businesses, several venture capitalists noted that recessions spur innovation. |
| Russo’s, a 100-year-old fruit and vegetable company outside Boston, lost half of its revenue in 24 hours when the universities, public schools and restaurants that it supplied closed. Its retail store remains open, and business is increasing. | Russo’s, a 100-year-old fruit and vegetable company outside Boston, lost half of its revenue in 24 hours when the universities, public schools and restaurants that it supplied closed. Its retail store remains open, and business is increasing. |
| Karen Russo, a fourth-generation member of the family that owns the company, said she had long wanted to create boxes filled with a variety of fruits, vegetables and other products that could be placed directly in the trunk of a customer’s car. Her father, Tony, who owns the company, resisted but finally agreed two weeks ago. Now they have four types of boxes, which are selling well. | Karen Russo, a fourth-generation member of the family that owns the company, said she had long wanted to create boxes filled with a variety of fruits, vegetables and other products that could be placed directly in the trunk of a customer’s car. Her father, Tony, who owns the company, resisted but finally agreed two weeks ago. Now they have four types of boxes, which are selling well. |
| “It’s hard to expand and contract at the same time, but we’re trying our best,” Ms. Russo said. “We’ve been doing a lot of thinking about what we have and how we can use it in a different manner.” | “It’s hard to expand and contract at the same time, but we’re trying our best,” Ms. Russo said. “We’ve been doing a lot of thinking about what we have and how we can use it in a different manner.” |
| Before closing its factories, Skyline prepared its work spaces for a different world when people return. It moved workers six feet apart, reclaimed unused space in one factory and drew up plans for shifts to have fewer employees working at the same time. | Before closing its factories, Skyline prepared its work spaces for a different world when people return. It moved workers six feet apart, reclaimed unused space in one factory and drew up plans for shifts to have fewer employees working at the same time. |
| The company is prepared to lose millions of dollars this year, but believes it can weather the downturn. What worries the Weckers is the loss of their business partners. | The company is prepared to lose millions of dollars this year, but believes it can weather the downturn. What worries the Weckers is the loss of their business partners. |
| “A company like Macy’s scares us because they owe us a lot of money,” Mr. Wecker said. “But we also have 70 years’ worth of relationships with fabric and foam suppliers. We’re doing our part to continue to pay them on time.” | “A company like Macy’s scares us because they owe us a lot of money,” Mr. Wecker said. “But we also have 70 years’ worth of relationships with fabric and foam suppliers. We’re doing our part to continue to pay them on time.” |