COVID-19 Relief: Financial Resources to Help Wine and Tourism Businesses
We were having lunch with friends last weekend (with wine of course) and they mentioned they’d just cancelled a family trip they’d scheduled to Italy. Every venue they contacted, from wineries to restaurants to hotels, was gracious and understanding, and encouraged them to please reschedule as soon as they could.
It’s become a familiar, sad refrain throughout the wine world, as tourism and hospitality suffer the impact of COVID-19 travel limitations. Official statistics are also starting to emerge that confirm anecdotal evidence, including from the DTC space.
“We reviewed our server statistics and noticed tasting room volume over the weekend was down 22% versus the average in February,” said Devin Loftis earlier this week from WineDirect in Napa.
We’ve been writing recently about the value of “decentralizing” DTC programs and the strategic use of data that wineries already own; both of those posts underscore the importance of implementing a robust online sales strategy to fall back on when tourism slumps.
This week I’d like to share information about additional resources that don’t have to do with data per se. These resources have come across my desk in my roles as journalist and entrepreneur, and they strike me as potentially helpful measures for businesses in our industry.
I thought you might like to know, and please let me know if there’s some way that we can help.
This article in the Wall Street Journal outlines financial resources (primarily loans and grants) to small businesses in New York City, with a particular focus on restaurants that are suffering declining sales because of the coronavirus outbreak.
You may have already heard about the new bill that allows the Small Business Administration to issue approximately $7 billion in low-interest loans. Additional measures that are still being discussed, that could impact our industry specifically, include financial assistance to hourly wage workers affected by reduced business, and paid sick leave for those affected by the virus who don’t have benefits through their employer.
In New York, businesses with fewer than five employees may be eligible for cash grants of up to 40% of payroll costs for two months. That averages to about $6000.
In San Francisco, the Chamber of Commerce is expected to petition the city government for measures that include temporarily waiving fees (such as sidewalk fees) that can be a burden for restaurants with already-low profit margins.
In Washington state, the governor’s office is expected to announce measures such as debt and late-penalty forgiveness for workers; deferred bills, waived fees and no-interest loans; and favorable credit terms for businesses that encounter cash-flow problems.
Is your business incorporating any particular ideas or resources you’d like to share? Please let us know, as they may well be useful to us all.
Thank you,
Cathy