COVID vs. Small Businesses

Morgan Larson, Writer

Over the past few months, we have seen major changes. Changes that have hit all of us in more ways than one. Limiting us seeing family members, wearing mask almost everywhere we go, our jobs being terminated or laid off and how we go about supporting our local businesses. This is COVID vs. small businesses.

This pandemic has affected so much. Personally, it cost me my job. The damage it has done has been indescribable for the much-needed traffic that small businesses need to stay alive. Why is this happening? How are some businesses still thriving while others have had to shut their doors? What is it that these are businesses doing to adapt to this new “normal?”

 First, I think it is crucial to support these local businesses. I mean it is their livelihood. Businesses, who have been operating since even the founding of these town, are now on the brink of extinction. They are trying to provide the public with a local service for their communities.  I strongly think we need to do our part and support these businesses, even if this pandemic is still going on.  If we do not, we lose that service or business forever.

 I believe this has been interesting to see the status of businesses in the last few months. Ryan and Amanda Banes, the founders of Century Farms Distillery in Spencer.  Opening the business in January of 2017, the Banes’ are both Mechanical Engineers. With experience in the oil industry, Ryan learned from working at ethanol plants, how to make alcohol from corn.

It was this concept that made them become a small business in producing whiskey and vodka for the local area. Like any local business in the US, Century Farms Distillery were feeling the effect COVID was having. The tasting room did have to shut down in March due to COVID, which I did not expect to have that happen out of what could have happen.

Century Farms went from making Open Gate Vodka, Prairie Corn Whiskey and Century Farms Bourbon to Hand Sanitizer. They were making and bottling just hand sanitizer up until June and reopen their tasting room! This is what I love knowing about this distillery.  Since the tasting room was back; they were able to continue making their whiskeys and vodkas.  I cannot get over how quickly they configured a way to keep this local business going and provide a high demand for a vital product.   I admire they found a way to keep going and to help stop the spread of COVID.  One change did have to occur with COVID. 

Amanda said, “One additional change to our business was a change in the law that allows us to sell mixed drinks to go. This is something that came about when restaurants and bars where shut down except for take-out. It has been an important part of our business in this challenging economic environment.”

This is my point, businesses should find ways like this to stay open. I think if they can conform to the pandemic as a necessity, they need to switch their operations.

It has not been so lucky for other businesses in the state of Iowa either.  Just like all the other states, Iowa has seen a significant hit in local businesses depleting or closing permanently. I feel that COVID hit businesses in different levels.  You have businesses who don’t have the traffic flow they used to, the type of business that required certain functions can be supported or, sadly, if the state comes in and shut them down due to breaking COVID regulations.   I think that these businesses are facing an increase of new regulations and a decrease of customer traffic and certain business functions.

From April 3, 2020, in the state of Iowa, 92% of small employment facilities were negatively affected by the pandemic.  Although, about a week before this number, 76% were experiencing negative outcomes.  The percentage of companies that have benefited from the pandemic, due to the type of service, good or product they sell towards a COVID necessities are at 3%. *

The NFIB State Director for the state of Iowa, Matt Everson had this to say on the matter; “It is getting progressively dire for small businesses and their employees in Iowa. Although small business owners tend to be resilient, the current trend is unsustainable,” … “To help with some of the lost revenue, we encourage all small businesses to contact their financial institution as soon as possible to explore all funding resources that the federal government has begun to provide. “ *

Now, there is an astronomical impact of small business due to COVID. I think we will see small, local businesses strategizing and reaching out to the PPP (Paycheck Protection Program) to obtain loans. Before we see the increase of regulations being enforced. Businesses in Iowa and the rest of the country are already seeing this.  It is said that 2/3 of Iowa employers will do this. It is another way of providing help to an ever-changing crisis.

Although I do see more small businesses closing due to the relentless regulations in place. I know our economy is greatly affected by this pandemic, the issues on when it will cease and how fast these small business can get back on track towards the most “normal” normal they can get to move forward. We need to act now to help our small businesses, before it is too late.

* https://www.nfib.com/content/news/coronavirus-state/iowa-small-employers-are-in-crisis-half-will-have-to-shut-down-in-less-than-2-months-without-help/