Coronavirus Financial Crisis: Unemployment Claims Grow As Small Businesses Adapt To Hardships
SACRAMENTO (CBS13) — The growing financial crisis is impacting small businesses forcing many workers to turn to unemployment assistance.
Susan O'Brien, the owner of The Kitchen Table, is expanding her business online to keep money coming in, but some of her employees are on unemployment.
"I had to cut their hours," she explained.
Broadway Coffee Owners Jimmy and Charles say they closed their shop's doors in mid-March.
"All of our employees are currently on unemployment," they said.
The state's stay-at-home order is forcing more and more people into unemployment.
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"The stark reality is that there is more demand than there is cash," said Amanda Blackwood, President and CEO of the Sacramento Metropolitan Chamber of Commerce.
Blackwood says funds are already drying up fast.
"They have processed decades of claims in weeks of time," she said.
Although she says experts can't project when businesses will start experiencing the worst, she does say some businesses will have to close.
"The very candid reality is yes, all of our businesses that were operating in Q4 2019, you will see a loss," she said.
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The financial impact is driving people to the Sacramento Metro Chamber for help.
"We have seen each week over thousands of new hits to the site. Upwards of 5,000 a week to 7,000 a week," Blackwood explained.
For Susan, Jimmy and Charles, they are adapting to the financial hardships and look forward to bringing employees back.
"I am excited about opening again one day," Susan said.
"That's what we are truly looking forward to is seeing our base back," the Broadway Coffee owners said.
The Sacramento Metro Chamber says the are counselors businesses can turn to, to provide guidance. It also has a Rapid Response Business Triage Hotline that people can reach at 1-833-391-1919.