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| Book Moon owners Kelly Link and Gavin J. Grant | |
On Sunday on Twitter, Gavin J. Grant, co-owner of Small Beer Press and Book Moon bookstore in Easthampton, Mass., outlined the argument for "a Main Street bailout." It reads:
"We need a #MainStreetBailout.
"We greatly appreciate those online and in the real world who have supported us and ordered books from our website but the burden to support small businesses should not be on individuals (customers, celebrities, or philanthropists): this is a moment that requires federal intervention.
"I want to write about why SBA loans are not going to help and why the federal government has to take actions it has never done before through the lens of one small bookshop, Book Moon, in Easthampton, Mass. This isn't about Book Moon: this is about all the small businesses in this country--and by expansion, all countries undergoing the Covid-19 pandemic social distancing closedown.
"Book Moon closed today for at least the next two weeks. The rent is due in 2 weeks. The utilities are due. We are still paying our part-time booksellers, though we ourselves do not draw a salary. We're offering Take Out/Curbside pick up and we'll see how it goes. We're getting lots of online orders (THANK YOU!). Online orders have costs which I can go into elsewhere but are not the focus here.
"In a normal day, for every $1.00 in income we have about $0.99 in costs. For every $1 that comes in, the books cost about $0.60. Wages and utilities, insurance, rent, ads, &c cost about $0.39, leaving us $0.01. We're in our first year and if we can keep it to a 1% margin, we are going to be very happy.
"But. What happens if there's no income? We still need to pay for the books we've been ordering and those ordered for 'take out' or internet orders. And we still have those fixed costs. But: There is no income. How long can we go on?
"On Monday our bank account balance will be the equivalent of 8 days income. (I am not including actual liabilities, what we owe suppliers.) So without income we can go about 20 days before our bank account is empty. (This is why I am talking about *all* small businesses: internet orders may push that out another week or so: other businesses may have fewer days.)
"All the small businesses in my community and yours do not need SBA loans. Many are healthy businesses in danger of closing due to extraordinary circumstances. If we're spending 97, 98, or 99c to make a dollar, we can't take on loans. Loans are going to be an extraordinary future burden for all these small businesses.
"We need the federal government to write checks, not loans: we need a #MainStreetBailout or the stores are going to start closing and who knows if they'll be able to open again?
"Call your Senator. Call your Representative."