HomeMy WebLinkAboutCOM 0970.002 2018-2020 Pleomm
ULY 8 . 2020 (2014M.14M. 970
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RE: Resolution 666-20 -Relating to CARES Funding to Support Small Business - IL��.
To Chairman Chung, Councilman Kanealii-Kleinfelder, and members of the Council:
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On behalf of my business, Lotus Garden of Hilo, a Bed and Breakfast in Downtown Hilo I strongly support
RES 666-20, and urge the administration to use at least $5 million of the$80 million Federal Coronavirus Aid,
Relief, and Economic Security(CARES) Act to fund a micro-grant program for small businesses affected by
the Covid pandemic.
Our small businesses are essential to retaining the unique character, flavor and way of life on Hawaii Island.
• They keep much more money circulating in our island economy than do our purchases at chain stores or
online.
• Local businesses not only provide jobs, they also hire local accountants, plumbers, computer specialists,
etc., to support them.
Without our small businesses, we become just like every other community, dominated by big box stores with
food, drinks, items that can be purchased anywhere, and whose marketing, accounting, website, and various
services are provided from elsewhere.
The eco travel market is already hosting 'staycations' of Hawaii residents. Hawaii residents choosing to take
staycations can become a new trend for our tourism industry. All measures to support small accommodation
operators like our own business will do much to add funds $$to our local economy.
I agree that at least $5 million of CARES Act monies received should fund a micro-grant program providing
funds directly to small businesses affected by Covid. Because businesses support thousands of jobs, employ
people who pay taxes and pay taxes themselves, this grant program is more than a"nice to have". These grants
will allow businesses to survive since government has limited their revenue, mandated their closing and
continues to enforce new regulations that costs them more. The entire $22 million for small business support is
needed, but this grant program is a good start.
I want to suggest that Council should be ready to hear from Downtown Hilo that a project must be
funded that is designed to bring people back to Downtown area in a way that is appropriate and safe at
this time and that will greatly improve our rate of recovery and will help to keep our small businesses
open. This kind of funding must be released if we are to save Downtown.
While many businesses have received SBA Paycheck Protection Program loans and Economic Injury Disaster
Loans, many businesses are still suffering from severely decreased activity of residents and virtually no visitor
spending.
• Businesses connected to the visitor industry (of which we are one) are experiencing the deepest losses
• Our retail, restaurants and bars primarily serving the local market are suffering too due to restrictions,
social distancing and masks.
• Citizens are staying home more and purchasing items online. While this is good for health, it is
devastating to business and tax revenues.
This $5 million to one-time Hawaii County Small Business Grant Program will provide CARES funds directly
to assist hundreds of small businesses with under $1 million in 2019 sales, both those required to stay open and
those who suffered business interruption due to Emergency Proclamations. These funds should assist only
businesses that have experienced a serious downturn compared to 2019 sales. By reimbursing expenses for
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"essential businesses", those required to stay open during this pandemic,this grant can help them recapture
some of the expenses of staying open. Those required to close, who experienced a serious decrease in revenue
due to Emergency Proclamations, "non-essential businesses", need help to hold on until our local economy
recovers.
I hope this will be one of several bills to directly help our small businesses.
Again, in addition to this measure of economic assistance, Council should be ready to consider the needs
of The Downtown Hilo business community to fund actual projects that will help rebuild community and,
in the process, reboost our economy. URGENT ACTION IS REQUIRED TO TAKE CARE OF OUR
DOWNTOWN BUSINESS DISTRICT BEFORE TOO MANY MORE BUSINESSES CLOSE UP
PERMANENTLY.
This bill can provide vital help for small businesses. For these reasons, I respectfully request your support of
Resolution 666-20. Mahalo for the opportunity to submit testimony.
Mahalos,
Megan Isaac Magdalene
www.lotusgardenhilo.com
140 Kilauea Ave
Hilo HI 96720