CHICO, California – As part of coronavirus relief, businesses across the country can now apply for loans.
For some businesses, it’s a way to lighten some of the financial burden, but for other businesses like Om Foods in downtown Chico, it’s a way to keep the doors open.
“I am applying because the minimum wage is rising to $ 13 an hour,” said Amanda Bossheart. “We are making less money, but we have to pay our employees more.”
Bossheart, owner of Om Foods, says his business is wreaking havoc with the pandemic.
“Our costs are all increasing, everything is in a take out box, all of these expenses are higher,” she said. “It would relieve us a bit, give me a chance to breathe a little.”
According to Bossheart, business and sales are still down 50% from a year ago.
“Another loan would absolutely help my business get through this next surge,” she said. “Because we don’t even know when we’ll reopen and get our restaurant back.”
Bossheart says she will apply and she applied for the PPP loan the first time.
But Celestino’s Enzo Perri is still thinking about applying this second time around because he takes everything into consideration.
“I’m still trying to find out where we qualify, if we are going to qualify this time around for funding,” said Enco Perri, owner and operator of Celestino’s. “We weren’t forgiven for our first round where I don’t want to get stuck with so much debt and then get in trouble later.”
Still, Perri says it’s important to keep businesses afloat and to have staff.
“It’s a good way to make sure that companies don’t go bankrupt,” he said.
“I’m happy that I can keep my staff and I can keep them employed, I know they have families. I don’t want to lose them, that’s another thing. They are a valuable asset to our business, and I want to keep my staff so if I can keep them at work, ”Perri said. “If that requires me to take out a PPP loan, I will.”
The US Small Business Administration typically says that businesses that received the loan the first time are eligible to receive another loan this time around if they apply for it.
To qualify for the PPP loan, companies must demonstrate a gross sales loss of 25% during the pandemic.