“It really is a disaster”: Monterey Chamber CEO offers warning and advice

SALINAS, Calif. (KION)

Restaurants and hotels in Monterey are either closed or a shell of what they were just two months ago - before the COVID-19 pandemic spread through the United States and states, like California, went under "stay at home" orders.

"It is really a disaster," Monterey Peninsula Chamber of Commerce CEO Frank Geisler tells KION. "It seems like the economy is collapsing. Specifically the hospitality industry is very much hurt."

In late March, the Monterey County Convention and Visitors Bureau (CVB), published that the short-term loss is estimated to be $400 to $500 million in first 90 days.

Geisler says the Chamber is fielding tons of calls from worried business owners. The three most common questions:

• How do I access financial help?
• Do I still need to pay rent?
• I want to keep my employees. What do I do?

The CARES Act, passed by Congress and signed into law by President Trump, included roughly 350 billion dollars in Small Business Administration Loans. The Paycheck Protection Program was designed to help small businesses retain workers and pay bills.

However, people are having a hard time getting through or have not heard back regarding their application. Geisler says the Chamber applied for the Economic Injury Disaster Loan, which would be a 10,000 dollar advance. He says they did this the first day possible and have not heard back.

"We have not received any communication from SBA. I have heard the same thing from many people - that they have applied (and) if they were successful, they have not received the confirmation or tracking. Obviously SBA is overwhelmed. That goes without saying. The amount of loans they have received in a week exceeded what they have received in a year."

Geisler worries it could be eight to ten weeks before this assistance comes, which he tells me "might be too late for some business."

He says that immediate relief is going to have to come from the local level. He is encouraged by the proposal of a "stimulus plan" in the City of Monterey (to be presented April 21), but is also actively pushing for private sources of help.

"The chamber has created a partnership with the Community Foundation For Monterey County. We are about to launch a small business relief fund. Where private donations can be given to the tax deductible status to the community foundation. The money would be there and the chamber would receive applications for grants." Geisler says this would "fund those businesses quickly and fill the gap between now and when they receive federal dollars."

In the meantime, what does Geisler recommend business owners do?

"Go talk to your banker, that is the first thing. Of course they are very busy and they are dealing with the SBA loans and federal funding. But go to the bank that you have had a relationship for years. Secondly, go talk to your landlord because if you business is closed, how can you pay the rent?"

KION also spoke with Congressman Jimmy Panetta (D-Carmel Valley) about the effort to expedite federal COVID-19 relief and what his office is doing to help.

Full interview will be posted here shortly.