Some businesses near breaking point, others anxious, as shutdown continues
WILMINGTON, N.C. (WECT) - The push to reopen businesses across North Carolina is getting stronger. More than 20,000 people have joined the Facebook group #ReopenNC in recent days, demanding they be allowed to return to work.
“We are residents of North Carolina that stand for The Constitution and demand our officials Reopen NC no later than April 29, 2020,” said page administrators. “We are losing our small businesses, which are the backbone of our economy. The shutdown is not warranted, nor sustainable for our area. The vulnerable can be isolated or protected in other ways, without sacrificing our entire state economy….”
In response to push back like this, New Hanover County leaders announced Monday they were relaxing restrictions that went even further than statewide stay-at-home orders. Boat ramps, tennis courts, clothing stores, and car dealers are among the list of entities allowed to resume operations again.
It was welcome news to Coastal Kia Owner Pat Koballa, who said sales volume decreased substantially in recent weeks. He said the statewide shutdown cut business for North Carolina car dealers roughly in half, but local restrictions forcing New Hanover County dealers to completely close their showrooms cost Wilmington dealers even more business.
“New Hanover County leaders took an aggressive stance to combat the spread of the virus. Which I commend them for doing that and obviously they had a lot of data to make their decision from. The unfortunate thing for us is someone can go to Brunswick County, or Pender County or Onslow County and purchase a vehicle,” Koballa explained of the competitive disadvantage New Hanover County’s order created for local businesses.
Koballa said when business is going well, his dealership typically sells four to five cars a day. Since the county stay at home order went into effect, sales dropped to about one car a day. Despite the drop in business, Koballa still has close to 50 employees counting on him for a paycheck.
“I’ve got a small group of people here. Everyone of them is vitally important to me. And I have continued to pay them as they would have normally gotten paid. Even if they are not here at this point in time. The scary part is we just don’t know how long this is going to go on,” Koballa explained.
Koballa said the last couple of years have been strong in the auto business, which is helping him weather this storm now. But he said an indefinite shutdown is not economically sustainable for his business. He has applied for a small business loan through the federal Paycheck Protection Program to help him continue to pay his employees, but has not received an update on whether his loan request has been approved, or when the funds might be available.
Word that some places like Southport have already decided to cancel their Fourth of July celebration concerns him. While many businesses have managed for the last month with little to no business, Koballa said doing so for months to come is not realistic.
“If it were to go on for that long, you know it could be very challenging for a lot of folks, and there may be a lot that just won’t be able to return,” Koballa explained.
WECT spoke to another well-known business owner Monday who declined to go on camera, but shared on background that he while he had been able to pay his two dozen employees up to this point in the shut down, that was ending this week. He said his bills are still due, and the cash flow sustaining the payroll without income has now run out.
During a press conference Monday afternoon, Governor Roy Cooper said if people vigorously adhere to the statewide stay at home order through April, and the Coronavirus spread continues to slow in North Carolina, he was hopeful they could ease restrictions in May.
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