Originally published August 2020 at https://www.escondido.org.
Escondido Insight — Business Spotlight
City of Escondido Grants Give Relief to Cash-Strapped Small Businesses
The City of Escondido has created the Small Business Grant Program to further support local Escondido businesses impacted by the ongoing pandemic. The city partnered with the San Diego North Economic Development Council to administer the grant program to distribute $1 million from the city’s awarded portion of the federal CARES Act. Grants will be available to businesses that have annual revenues of less than $1 million and have been affected by COVID-19-related hardships. Small businesses can receive up to $15,000 to help make commercial rent payments, maintain payroll, and/or buy protective equipment such as gloves or wipes. Grant funding can also be used to make physical improvements to the business space such as adding plexiglass at registers or at tables and purchasing tables, chairs, canopies, umbrellas and other items to assist with outdoor operations in order to comply with current health and safety requirements.
The grant program began July 17, 2020; the City has received almost 200 applications and 35 businesses have been awarded grant funding in the amount of $378,275.
“The application process is open until August 28 and businesses are encouraged to apply as soon as possible” said Amber Tarrac, Escondido’s Deputy Director of Economic Development. “The City is committed to helping our local small businesses during these difficult times and we hope the amount awarded will help in some respect. The City has also partnered with Univision to help market the program to our Hispanic/Latino business owners.”
Awards have been granted to businesses in the following categories: food manufacturing, restaurants, retail, art galleries, barbershops, and hair and nail salons. Two businesses that have received funding are J&M’s Family Restaurant on Valley Parkway and Deborah’s Next to New Consignment on East Valley Parkway.
A Community Staple
Since 1987, Joe Goncalves has owned and operated his family restaurant in Escondido. Originally called Spire’s, Goncalves renamed it J&M’s Family Restaurant in 2012 and has welcomed locals, regulars, and guests to enjoy meals ever since.
“We offer everything from eggs benedict to chicken fried steak, to corned beef hash. You name it, we got it,” said Goncalves.
When the pandemic forced Goncalves to shut his doors, he quickly got to work and created a space that would not only welcome guests back but would also ensure their safety. Plexiglass partitions were installed between the booths and seating was rearranged to allow six-feet table separation. Even that couldn’t bring business back to normal.
The restaurant set up social distance spacing partitions between booths
“When we came back after the shutdown, we were up to about three quarters of the sales,” Goncalves said.
But the second shutdown has hurt his business even more.
“When they said we could no longer serve inside, that cut our business in half,” he said. To-go orders and curbside deliveries are helping but even they aren’t making up for the loss in revenues.
“The problem is, a lot of my customers are older,” said Goncalves. “They aren’t coming out right now understandably and they don’t do many pick-up orders. That’s my biggest issue.”
To help cushion his costs, Goncalves applied for the federal PPP loans and found the process frustrating. “I applied for the PPP loan, which was a disaster,” said Goncalves. Although he did receive some funding, he found the restrictions actually cost him out-of-pocket expenses.
When he heard about the Escondido Small Business Grant, he applied and received $15,000.
“This was the easiest one we applied for,” said Goncalves who also said the approval process was fast. “I don’t even know if it took a week. It was really quick.”
He will use the money for payroll expenses and COVID-19-related cleaning efforts. “My employees come first,” Goncalves said, and mentioned how great his staff has been at adjusting to the changes. “They do everything to follow the new rules.”
For now, Goncalves is thankful he is getting the community support he needs. “I am thankful that a lot of my clientele still support us. Even though they are elderly, they still come out to support us and call in orders.” He cautiously added, “I would love more business. I heard one in four restaurants are closing down right now. I just hope I’m not one of them.” In addition, J&M’s Family Restaurant jumped at the opportunity to participate in Escondido Eats, a City and Chamber of Commerce partnership to help spread the word to the community about local restaurant, winery, and brewery deals city-wide.
J&M’s Family Restaurant is located at 1215 E. Valley Parkway. Orders can be placed by calling 760–745–3710 or online here.
An Essential Service to Escondido
“We are a well-needed business here, especially in our little part of Escondido. We get a lot of foot traffic from people who need everyday items,” said Jeff Kitfield, manager of Deborah’s Next to New Consignment, which has been a general household consignment store in Escondido for 45 years. “We sell everything from clothing to lamps, and dishware and everything in between.”
Owner Tami Marmon shut down the 7,500-square-foot store in March, but was able to reopen on July 1. “We have seen an increase since we opened, but closing for three months really put a damper on our business. We are doing everything we can to let people know we are open and safe again, so please come in,” she said.
She also noted there has been an uptick in people coming in to sell their stuff.
“I think they had all that time off to clean their houses.” Kitfield added, “Right now we are doing appointments. We do pickups and delivery for people who want to unload an entire house to us.”
Even with the added customers dropping items for consignment, the shutdown was tough on business.
“It was a rough three months to have no income and no inventory coming in or going out. It was tough on my employees,” said Marmon.
Marmon, who staffs five employees, said she tried to shift hours and renovated the store while it was closed, yet some employees had to file for unemployment. Luckily, when doors reopened she was able to hire everyone back.
Financially, she needed assistance too. She applied for the Economic Injury Disaster Loan through the Small Business Administration, but still needed more assistance. “It’s a loan and now I have a debt. I didn’t want any other debt.”
That’s when she heard about the Escondido Small Business Grant. She received $12,000, which will be used for rent, payroll, and for cleaning supplies. “I am going to send a $4,000 check to my landlords Bruce and Terry Mullis,” she said. “They have been so wonderful to us; they didn’t charge us rent while we were closed. They were also helpful with the renovation. They are very kind, good people.”
Marmon and Kitfield are also happy with the response from the City throughout the pandemic. Kitfield said, “They’ve been 100% amazing. They have been willing and able to give us more advertising in the front of our store with banners and flags, which normally wouldn’t have been allowed.”
Kitfield also said the grant the City provided will help in multiple ways. “I feel like the grant will allow us to stay in the community, stay open and keep our employees, who live in the community, and not have to go outside it to find a job.”
Deborah’s Next to New Consignment is located at 1624 E, Valley Parkway. To set up a consignment appointment call 760–743–8980.
For more information on the Escondido Small Business Grant, here is the link to view the press release.
Applications in English can be found at: https://www.sdnedc.org/escondidobusinessgrants/
Applications in Spanish can be found at: https://www.sdnedc.org/escondidosubvencionesdenegocio/