Convinced that a startling number of small businesses in Utah's capital may limp through Christmas only to close soon after, Salt Lake City Councilman J.T. Martin is urging the city to lend a hand.
Martin is proposing a "Business in Crisis Center" to help educate merchants about the availability of loan programs and to negotiate with landlords on behalf of struggling shops.
A supermarket owner on the city's east bench, Martin worries the drooping economy could cripple business startups and staples alike.
"We fear that many of them are waiting through the holidays just to close their doors," he said. "They're behind on their rent, they're behind on their utilities."
The City Council and Mayor Ralph Becker's new economic-development team endorse the approach, suggesting a new Web site and designated phone number soon will be available.
That's welcome news for Cafe by Rico owner Jorge Fierro, who fears that without help, "30 to 45 percent" of the city's small businesses may shut their doors over the next year.
Indeed, Baxter's American Restaurant at The Gateway mall will serve its final platter today.
"A resource center would be extremely valuable for existing businesses and newcomers," said Fierro, a member of the city's Business Advisory Board. "I honestly think that in the next six months, some will close."
A regular at the Downtown Farmers Market who distributes at supermarkets, Fierro has seen business dip 15 percent. He also sits on the board for the Utah Micro Enterprise Loan Fund, where he has steered merchants looking for holiday bridge loans.
Frank Gray, the city's new community and economic-development director, says it may be possible to get more aggressive with the business-loan program for ventures that are stable but scuffling.
"The banks have told us they have plenty of money but people are not applying," Gray explained. "It may be a matter of underwriting or credit."
Gray, who notes the city is about to add a small-business liaison, hopes to coordinate federal and state resources to focus "more succinctly" on small-business needs.
The city cannot offer a federal-style bailout, Martin says, nor can it afford subsidies. Nevertheless, he says, timing is crucial since many businesses have been forced to use their Christmas inventory money to cover payroll, rent or utility bills. And with consumer confidence diving, owners banking on a Christmas boon may be disappointed.
"These are unprecedented times," Martin commented, "and we need to think outside the box."
Source:http://www.sltrib.com/ci_10932103