Coronavirus devastates Central NY small businesses but ingenuity, people bring hope - syracuse.com

The coronavirus pandemic has taken a devastating toll on local businesses in Central New York.

Jobs lost. Storefronts and restaurants closed. Industries wrecked or stretched beyond capacity.

Local banks have processed thousands of government loans — a lifeline to small businesses that already has been yanked away as federal dollars dry up. The mom-and-pop shops that feed, clothe, entertain and provide for us are left with uncertainty about whether they’ll ever be able to reopen.

In Central New York, this crisis means our neighbors are in pain. The service workers whose smiles brighten our days. The entrepreneurs whose creative products spice up our lives.

Yet in great times of turmoil, the overwhelming strife eventually makes way for an overwhelming response, an outpouring of support.

We’re encouraged by stories of employers putting their people first or stepping in to fill a critical need. The customers who support their favorite local spots with online orders and gift certificates give us hope. Partnerships and support groups remind business owners: You’re not alone.

Syracuse.com has shared the stories of struggle, and we’re going to share the stories of triumph, too.

In response to the coronavirus crisis, we’re launching Back in Business.

It’s an initiative aimed at the small businesses that make our community great. It’s a place to share resources and critical information, connect you with experts and find answers to your questions.

But it’s also a commitment: We know Central New York’s story doesn’t end in tragedy.

We’re going to document Syracuse’s comeback.

You can follow along and be a part of the story by joining us at the CNY Back in Business Facebook group, on LinkedIn, and by signing up for our upcoming newsletter.

Millions of people across the country — and thousands here in Central New York — have seen their lives and livelihoods upended.

Local businesses surveyed by CenterState CEO, the area business leadership group, say there’s a hole where revenue and customers were a month ago. CenterState said 55% of survey respondents have had to cut their workforce, either through layoffs or reduced hours, as a result of decreased demand during the coronavirus pandemic.

Another poll, by Siena College, shows that 40% of Upstate New York business leaders have already made layoffs, and another 8% expect they will have to soon.

Early numbers show more than 1 million New Yorkers have filed unemployment claims since mid-March.

The biggest job losses have been registered by restaurants, hotels and retail stores, but no industry has been immune.

“The concerns across industries have been very, very similar,” said Nora Spillane, CenterState’s senior director of business and economic development. “What we are hearing loud and clear ... is it’s cash flow and it’s customers and it’s revenue. That’s what people are really, really concerned about right now.”

CenterState’s survey found that behind cash flow concerns, companies are worried about the workforce, the employees that keep their businesses running.

Some local businesses have found a way to keep their employees on staff, despite decreased demand.

Erie Materials, the construction materials store with nine locations around Upstate New York and Pennsylvania including in Syracuse, Auburn, Utica, Watertown and Binghamton, has had to dramatically reduce employees’ hours — but kept paying their full salaries anyway.

The company, which started in Syracuse, divvied its staff into two crews that switch on and off week-by-week.

Everyone, all 350 employees, gets a paycheck every week.

“We’re a family business,” said Jack Matson, Erie Materials’ vice president of human resources. “Taking care of our people is one of our core values. We know we can’t have great service without great people.”

There is a silver lining in having millions of small businesses experiencing the same problem at the same time: The federal government was able to step in with an intervention useful to all of them.

That came in the form of the Paycheck Protection Program, managed by the U.S. Small Business Administration.

In less than two weeks, $349 billion set aside by Congress to help small businesses pay and retain their staffs was completely gone.

The SBA, an agency that typically processes around $30 billion in loans a year, was stretched way beyond its normal capacity. Officials noted 14 years’ worth of loans were processed in less than 14 days.

“We’re extremely busy,” said Bernard Paprocki, SBA’s district director for the Syracuse area, who has worked for the agency for almost 30 years. “It’s just absolutely unprecedented. I’ve never gone through anything close to this.”

Where federal programs faltered or didn’t fit businesses’ needs, local governments and organizations stepped in.

The Print Hub in Syracuse — Drew Shoup, owner of The Print Hub, is pictured wearing an orange hat in his shop at the Gear Factory in Syracuse. Shoup was able to obtain funding to maintain payroll during the coronavirus shutdown. (Provided Photo)

The Print Hub, a young Syracuse business specializing in screen-printing, embroidery and design, got ahold of one local loan.

Owner Drew Shoup said his company got a roughly $18,000 emergency loan through the Syracuse Economic Development Corp., a non-profit that offers low-cost financing to local businesses.

That made the difference in keeping employees on the books.

For Shoup, who at 30 is the oldest on staff at The Print Hub, it also meant taking care of the people he feels a sense of responsibility toward.

“One of the people working here has been working with me for five years," he said. "Being worried that you’re not going to be able to pay them is stressful. Everyone here — it’s mad corny because everyone will say it — but we actually are like family.”

Demand for fundraising products up — The Print Hub has seen more demand for T-shirts and other custom-printed products for fundraisers to help fight the coronavirus pandemic. One example was a bulk order for a fundraiser in Boston. (Provided Photo)

While Shoup has nonetheless seen declines in business, he’s also noticed some trends that give him hope.

Groups are asking about custom-designed cloth masks and ordering T-shirts in bulk to raise money to help nurses and hospitals. Others are ordering merchandise to support their favorite local artists.

Paprocki, the local SBA official, said while small businesses are hurting now, the same ingredients that made them successful once will come in handy again soon.

“What you’re seeing in the small businesses is the ingenuity and creativity that got them started,” he said.

That’s certainly been the case at Witty Wicks Candles, a Camillus specialty gift store.

Owner Aubry Panek, who works in the physical store by herself or with her husband, has regularly scheduled Facebook live videos, in which she showcases her products. She’s also offering free local, contact-less deliveries.

She hopes her products, such as candles, home decor and brightly colored accessories, help to give people some cheer.

“We all want to figure out what we can do that’s normal, to make us feel better,” she said. “I think the (Facebook) Lives have been fun. They are something to look forward to ... it’s fun to watch."

in this December 2019 photo, Witty Wicks Candles owner Aubry Panek, pictured at center, works with her team to fill holiday season orders. Panek has adapted her business due to the coronavirus pandemic, and hopes her products help bring brightness and joy to customers. (Provided Photo)

The videos, which she started doing a few years ago, have grown in popularity, doubling in views since the coronavirus forced her to close the store to the public.

So business has been steady — even good at times.

She estimates she’s shipping 40 boxes a day to the post office, along with lots of local deliveries

“I’m so grateful," she said. “We’re lucky to have something for the staff to come back to when we can reopen.”

Over the coming weeks and months, we’re going to tell you more about these remarkable businesses, the people behind them, and others who are finding ways to stay open and stay positive through what seems like an insurmountable tragedy.

Got a question? Have a story to share? Contact Reporter Julie McMahon: Email | Twitter | 315-412-1992

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