RNC 2020

NC’s small businesses are suffering. Owners in each party blame the other.

Who’s to blame for the damage done to North Carolina’s small businesses during this year’s pandemic-induced recession?

In a Republican-sponsored roundtable Tuesday, a handful of small business owners in Charlotte pointed a finger at Democratic Gov. Roy Cooper.

And in a virtual roundtable, Democrats and other business owners blamed President Donald Trump.

The dueling events came amid a general election campaign when both men face tough re-election campaigns. And they spotlighted the problems that small businesses face five months into the lockdowns and other restrictions triggered by the coronavirus pandemic.

Through Aug. 9, revenue for Mecklenburg County’s small businesses had fallen nearly 26% this year, according to the Opportunity Insights Economic Tracker. Statewide it was down more than 12%.

“We’re losing the small business character of Charlotte,” said restaurant owner Anthony Kearey.

Kearey joined state GOP Chair Michael Whatley, hotel owner Vinay Patel, small business owner Sonja Nichols, a candidate for the N.C. Senate, and Charlotte City Council member Tariq Bokhari around a table at Kearey’s uptown restaurant Tuesday.

They criticized the governor’s response to the pandemic. One study found that North Carolina has among the country’s toughest restrictions.

Until at least Sept. 11, North Carolina is in Phase 2 of the recovery. Bars, gyms, theaters and bowling alleys remain closed. Restaurants, barber shops and salons can open to a limited capacity. Some large businesses such as Wal-Mart, Home Depot and Target have remained open.

“My frustration started in Phase 2 when the governor arbitrarily decided who lives and who dies, who wins and who loses,” said Patel, whose company owns a dozen hotels in the Charlotte area.

Cooper spokeswoman Dory MacMillan said the governor’s “top priority is keeping people healthy and safe.”

“His cautious approach to easing restrictions and the mandatory mask mandate have saved lives and prevented North Carolina’s health system from being overrun like in other states, some of which have had to go backward and reimpose restrictions,” she said. “The governor is working to get help to small businesses and to workers who are unemployed. We can slow the spread, boost our economy and get all businesses open if people will wear their masks and social distance.”

Nichols said the restrictions have hurt minority-owned businesses.

“No one is talking to the small women- and minority-owned businesses to see how they’re doing,” she said. “It’s can’t be one-size-fits-all.”

Shante Williams, interim CEO of the Charlotte-Mecklenburg Black Chamber of Commerce, said 40% of the chamber’s 378 members have closed at least temporarily. Thirty businesses have permanently shut down.

In the virtual Democratic event, U.S. Rep. Jim Clyburn of South Carolina said Trump has mishandled the pandemic and its response.

“North Carolina has been particularly hit hard,” he said, citing the state’s 8.5% unemployment rate. “Many businesses have closed and will not be reopened. There will be nothing but catastrophe going forward.”

North Carolina’s July unemployment rate ranked in the middle of states, according to the U.S. Bureau of Labor Statistics.

Caroline Husa, who runs an events business with her husband in the Triangle, said they expected business to grow 300% this year. Instead, she said, “We simply haven’t been able to function.” She said they were unable to qualify for a loan under the CARES Act. She blamed the president for missteps in his response.

“It was crucial that he recognize the threat early,” she said. “He waved the virus off. He said the virus would disappear on its own.”

Bokhari said he hears from a lot of small business owners.

“It’s been a hell of a five months to hear their stories on a daily basis,” he said. “It takes a toll on anybody.”

This story was originally published August 25, 2020 at 5:13 PM.

Jim Morrill
The Charlotte Observer
Jim Morrill, who grew up near Chicago, covers state and local politics. He’s worked at the Observer since 1981 and taught courses on North Carolina politics at UNC Charlotte and Davidson College.
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