Bethlehem businesses ask: Can we survive?

The Enterprise — Michael Koff

Maureen McGuinness, president of the Bethlehem Chamber of Commerce, reports that some Bethlehem businesses owners say they “cannot continue past June with the way things are.”

ALBANY COUNTY — Directives meant to save lives are killing businesses.

Forty-four percent of the businesses surveyed recently by the town of Bethlehem and the Bethlehem Chamber of Commerce said they’re in danger of closing because of the statewide directives meant to stem the spread of coronavirus by keeping people home.

Maureen McGuinness, president of the Bethlehem chamber, which has 450 member businesses in Bethlehem and surrounding communities, presented the survey results at Saturday’s county press briefing. The suburban town, neighboring the city of Albany, has about 35,000 residents.

Ninety-five percent of the surveyed businesses reported a negative economic impact and 46 percent have already laid off workers, McGuinness reported. Also, 34 percent of the businesses reported supply-chain problems, ranging from increases in prices of their supplies to delays in shipping times.

County Executive Daniel McCoy said that the county has heard from Spectrum cable customers about a price increase and that he would be talking to the county’s sheriff and district attorney to see if it constituted price-gouging.

On the other hand, Niagara Mohawk “went back to its original rates to help people get through …,” said McCoy. “That’s a partnership.”

McGuinness said that the businesses that participated in the Bethlehem survey were very diverse. “I think people tend to think of Main Street retail and restaurants,” she said. “Of our participants, restaurants were only 5 percent of those responding; retail was 11 percent,” she said.

The other participants included agricultural businesses, construction, manufacturing, wholesale, finance and insurance, real estate and rental, professional services, health care, social assistance, arts and entertainment, and accommodations along with some “unique businesses,” she said.

“In follow-up conversations,” McGuinness said, “some reported they cannot continue past June with the way things are.”

Governor Andrew Cuomo has put the state on “pause” until at least May 15, closing schools and non-essential businesses and forbidding gatherings of more than 10 people. A team has been put together with representatives from other northeastern states to do a phased-in re-opening of the economy.

The governor said at his press briefing on Friday, as the state’s hospitalization rates for COVID-19 declines, “We can change the projection on the way down. But it is purely dependent on what we do. Are we socially distancing? Are we testing? How fast do we reopen? How do we reopen? ...

“If you say, ‘Well, we’re done, can’t stay in the house anymore, let’s just reopen, just start business tomorrow, let’s go’ — what happens? … All the progress we made is gone and all experts or virtually all experts will say, not only does the virus spread increase, but it increases to a higher point than we had increased the first time. Again, this is a remarkably effective virus at spreading and growing ...

“People are also talking about a second wave ... People are talking about potential for the virus to come back in the fall which means the game is not over which means the game could be just at halftime so let’s make sure we’re learning the lessons of what has happened thus far and let’s make sure we are being truthful with ourselves.”

McGuinness said that Bethlehem businesses are “definitely looking for government assistance.”

Despite billions of dollars in recently-passed federal initiatives meant to sustain small businesses nationwide, concerns are increasing that the Small Business Administration and the United States Treasury Department have not kept large corporations from getting funds before the smaller, independent businesses that have no other means of getting finances.

The average age of the businesses surveyed in Bethlehem was 21 years, McGuinness said. Those that have been in business for a longer time, McGuinness said, have reserves and are more likely to be able to rebound.

For the newer businesses, she said, “It’s not looking so good.”

“Our members are scared about … what’s going to happen with their business and also how will they open up,” said McGuinness. “Can their business survive in a post-pandemic world?”

 “Businesses are going to have to adapt and change …,” said County Executive McCoy. “They’re the backbone of our community. They’re the ones that pay our taxes … .”

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