Kemp tries to bolster small businesses

Published 11:43 am Wednesday, March 18, 2020

ATLANTA — Gov. Brian Kemp is leading a call of support for small businesses that are taking a large financial hit from the COVID-19 outbreak.

On Tuesday, Kemp requested the U.S. Small Business Administration provide Economic Injury Disaster Loans to the state of Georgia to help small businesses remain financially stable amid the pandemic.

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“Small businesses in Georgia are enduring severe economic hardship stemming from the spread of COVID-19. The effects of this pandemic vary by industry and economic sector, but it is clear that we must act,” Kemp said. “Georgia small businesses are the backbone of our state and national economies, and we look forward to working with SBA and our federal partners to support them in the weeks and months to come.”

The federal loans would help stabilize small businesses and go toward covering debts and operational expenses. The governor’s office submitted paperwork stating that the large economic impact coronavirus is having on Georgia businesses is “severe.”

During a Tuesday briefing with press, Kemp called for Georgians to support local restaurants and businesses.

“They continue to hang on in a really struggling economic environment that we’re facing and are going to face in the days ahead,” Kemp said. “I want to encourage all Georgians to support their neighborhood businesses and those folks that are here that are great supporters of our community. We got to buckle down and support each other and get through this together.”

A call for social distancing has caused restaurants to shut down their dining services and resort to drive-through only. Atlanta staple The Varsity suspended sit-in dining along with a number of major chains including McDonald’s, Starbucks and Chick-fil-A. Many other local establishments are adjusting hours and limiting customer contact.

Publix grocery stores have closed temporarily and as of Wednesday, Kroger announced a cut to hours.

Kemp wrote to federal officials he suspects ongoing and long-term damages to businesses because of coronavirus.

Despite concern, Kemp has resisted shutting down bars and restaurants and told radio station Q99.7 this week he has not considered imposing a shut down of establishments.

“We can’t just shut things down,” Kemp said. “If you overreach, the people would rebel and not heed the warnings you give to them. And a lot of people are listening.” 

Although Kemp has mandated the shutdown of public schools and colleges, he has not fallen in line with other governors across the country in closing bars and restaurants.

“Right now, there’s no reason for a statewide mandate,” he told Q99.7. “That’s the way we’re going to continue to do things, based on data and advice from health-care experts.”

On Wednesday, Kemp and the Georgia Department of Labor noted an increase in the number of partial claims being filed as a result of businesses reducing work hours and closing due to coronavirus.

Kemp said the state is working across the public and private sector to make sure workers “land on their feet” and help identify other employment opportunities.

Commissioner of Labor Mark Butler through an emergency ruling mandated that employers electronically file partial claims on behalf of their employees when temporary layoffs occur.

“We are partnering with the governor’s office and our federal and state authorities to make sure we are able to get the citizens of Georgia paid,” Butler said in a statement. “We are working as an agency to provide innovative solutions to meet the needs of our customers, even when information is changing every day.”