Chambana Sun

As federal Paycheck Protection Program money runs out, businesses that have been living off of the loan for three months will not be able to meet their expenses and will shutter, according to state Rep. Dan Caulkins (R-Springfield).

“On a national level, we’re already seeing major chains that have small local stores in malls and in communities declare bankruptcy,” Caulkins told the Chambana Sun. “Look at Pier One. When these major corporations are cutting their losses and closing, the smaller, locally owned stores seem to follow.”

About 5,100 Illinois-based business listings on a review-based website have either temporarily closed or will permanently shutter due to COVID-19 governmental shutdowns, according to a new study.

Yelp’s quarterly report found that about 4,400 were listed as Chicago-based businesses, and Illinois Policy Institute data determined that the state could potentially lose 94,200 service sector jobs permanently if a surge in coronavirus cases leads to renewed governmental closure orders.

Caulkins said that Gov. J.B. Pritzker's constant threats to revert to earlier phases of his shutdown orders undermine the confidence of small business owners.

“We're going to see more restaurant closures,” he said. “It seems like every week or two in Springfield, there's another store that's not coming back. Last week a 25-year-old husband and wife catering company in Springfield closed because there's no large groups to cater to. Gatherings are limited to 50 people and that's only been for about five weeks or so. Then you have our governor threatening to revert back to Phase 3 where you can only have 10 people in a group. It’s psychologically wearing on these small business owners as to whether they will be able to remain open or not.”

According to the Yelp survey, the highest number of business closures was among restaurants, about 17%, with 53% of those indicated as permanent. That’s because thin margins plague restaurants, the report stated, and, as a result, breaking even can be delayed by months or even years.

Caulkins also foresees trouble brewing for landlords due to Pritzker’s eviction ban.

“Some folks in my district own rental properties, and the governor issued an eviction ban that you can’t evict people who don’t pay rent and yet expenses still go on for the landlords,” he said. “The electric bills still come, the water bills still come, the garbage bills still come and they still have to pay the mortgage on their property. Property taxes aren't forgiven so these landlords are being squeezed. We're going to see a real problem in the rental industry.”

Caulkins further stated that Pritzker has unrealistic expectations of conquering the coronavirus.

“His administration has gone from let’s flatten the curve to now we have to keep everybody from getting COVID, and that's not possible,” Caulkins said. “Because it's an election year, there's a lot of speculation about our governor having political aspirations and not liking [President Trump]. People also accuse him of using the powers of state government to punish, and it's created an atmosphere in Illinois that is not conducive to job growth. It's not conducive to job retention and people are leaving in droves. When people leave, consumer demand dries up and when consumer demand dries up, businesses and retail outlets dry up.”