Derek Stonebarger, owner of ReBAR and the adjoining Davy’s in the Arts District, is like many other business owners worldwide impacted by the economic crisis brought on by the pandemic.
Stonebarger spoke to lawmakers Wednesday at the Nevada Legislature to detail the struggles of small business during the pandemic, where Nevada bars went from being shuttered for months to operating at a limited capacity.
“We’re able to operate only at 25% occupancy. I want you to think of having to operate off a 25% budget,” he said. “Imagine how many deals you’d have to cut … how many salaries you’d have to cut. That’s what we’ve had to do and what we’ve had to continue to do until this day.”
Stonebarger said the only way he’s been able to stay afloat is through grant programs, including the state’s Pandemic Emergency Technical Support Grant Program. The Nevada Assembly in a near-unanimous vote on Wednesday passed legislation that would double the amount of money sent to the program by the state.
The bill would provide $50 million from the state’s general fund to the grant program, which launched in October to supplement small businesses crippled by the downturn caused by pandemic.
The program started with an initial allocation of $20 million, and later received $31 million more. If the bill passes through the Senate as expected, the total allocation would be $101 million, making it the largest small-business grant program in state history, Gov. Steve Sisolak said.
“For many of our small businesses, the funding they were provided was the difference between staying open or closing their doors,” Sisolak said. “It was the difference between meeting payroll for their staff or making the excruciating decision to lay people off.”
The program can grant up to $10,000 per business, though arts and cultural organizations and chambers of commerce serving more than 10 businesses can receive up to $20,000. The funds can be used for expenses including payroll, rent, utility bills and virus safety modifications like sneeze guards.
“This relief has been needed for many months, action from the Legislature is long overdue,” Senate Minority Leader James Settelmeyer, R-Minden, said in a statement. “Thousands of businesses have been devastated, and thousands of Nevadans are still waiting to return to work due to the 25% capacity restriction.”
The program covers for-profit businesses with fewer than 50 employees and an annual gross revenue of less than $4 million. These businesses must have a physical location in Nevada, a business license active prior to March 2020, be in good standing with the state and be able to demonstrate financial hardship related to the pandemic.
Nonprofits, chambers of commerce and arts and cultural organizations can also apply, and do not have to meet employee or revenue guidelines.
“Nevadans are in crisis and we need to lead them through it,” Assembly Speaker Jason Frierson, D-Las Vegas, said in a statement. “We have taken remarkable steps in the first 10 days of session to keep people in their homes, pay their bills and now with this vote today, helping Nevada’s small businesses get back on their feet.”
Many have endured added expenses to operate, such as purchasing personal protective equipment for employees or hiring security to ensure patrons are following COVID protocols.
“I’m not complaining, I’m happy that we’re allowed to be open again, folks,” Stonebarger said. “But I am telling you that we’re desperate, and hopefully you can hear it in my voice.”
Judging by the bipartisan action, they clearly did hear the business owners in need. The measure passed with a unanimous vote in the Assembly, with one absence.
“This program provides us something we can all agree on — that when we are able to provide help to those who need it during one of the most trying times in our state’s history, we are going to get it done,” Sisolak said.