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04/01/2020 09:00 AM

Nonprofits and Small Businesses Threatened by COVID-19


The cultural cornerstones of Chester, Deep River, and Essex—from small businesses to nonprofit organizations in youth development and others in the arts and museum industries—are feeling the effects of the statewide public safety measures mandated in response to the new coronavirus, COVID-19.

Several of Governor Ned Lamont’s executive orders have put revenue generation in free fall for these organizations, especially for those that depend on in-person activities that have been canceled or postponed such as educational programming, large fundraising events, or performances.

In addition to exploring state and federal funding options, many of these small businesses and nonprofits are asking for financial support to help them weather the financial disruption that COVID-19 has wrought on so many of them.

At this time of year, Camp Hazen in Chester typically works with different school groups to offer outdoor adventure educational programs, retreats for other nonprofit groups and vacation camps.

“All of that has come to a halt,” said Camp Hazen YMCA Executive Director and CEO Denise Learned.

Although she admits that their winter and spring programming “isn’t the largest part of what we do, are we losing hundreds and thousands in revenue? Yes. It’s definitely going to take a toll,” she said.

Working with the Connecticut Office of Early Childhood, Camp Hazen opened its doors on March 23 to provide childcare for children of essential workers needed for the COVID-19 pandemic.

“It’s not what families are used to doing, paying for childcare for school-aged kids,” said Learned. “We are going to be using a lot of our financial assistance dollars to support it.”

Any financial contributions from the community would be used to support this program.

“This is our way of being an active member of the community and doing what we can,” said Learned. “It’s what we do, we work with kids.”

Other area nonprofits have also been affected by the closure of schools and have had to cancel fundraising events.

The Connecticut River Museum in Essex canceled its annual fundraiser, RiverFare, and a joint fundraiser with the Rotary Club of Essex, the Shad Bake.

“On top of that, we depend on school groups and all of those, needless to say, are canceled,” said Connecticut River Museum Interim Executive Director Tom Wilcox. “Those three things add up to a huge loss of income for us.”

Wilcox says the museum is contemplating furloughs or layoffs but has not decided on a course of action.

“I think the [Small Business Administration] does have a loan program,” said Wilcox. “The problem with that is it’s a loan. It’s possible that it’s more like a grant. If it’s a loan, it’s not necessarily a smart thing to go into debt at this time.”

Wilcox says the museum is interested in exploring possible funding opportunities through the federal government’s passage of a relief package.

“We are sort of planning for the worst, hoping for the best,” said Wilcox. “Our fiscal year end happens to be June 30, that is our planning horizon. We don’t know any more than anyone else knows when we all as a society will change our current reaction to the virus.”

In the meantime, Wilcox says, “what we are doing is, we continue to thank our donors and our members and our supporters. We continue to solicit their help if they want to give it to us in terms of our annual fund.”

The Incarnation Center in Deep River is another organization facing financial difficulty after suspending operations on March 13 because of COVID-19.

In a written statement posted to its website, Executive Director Nancy Nygard Pilon states “considering the conference and vacation camp cancellations, the loss of revenue from the absence of Nature’s Classroom and Bushy Hill school groups, and the closure of Nature’s Playground Afterschool, we stand to lose nearly $1,000,000 in revenue over the next eight weeks.”

In a March 24 interview with the Courier, Pilon explained that she plans to use funds from a capital reserve account to continue paying a 30-member year-round staff of employees, recurring costs such as electricity and utilities and property liability insurance.

“My first priority is our staff,” said Pilon. “Our property is incredible, but the lifeblood of the organization is the staff. They make this place so special.”

Any funds raised through the center’s $1 million fundraising campaign will replenish the center’s capital fund, which typically goes toward capital projects such as road maintenance or fixing equipment used by kids attending the center’s varied programming.

The written statement detailing the center’s ask was a “general shout out to everybody,” said Pilon. “We know it’s a difficult time. Not everybody can do something right now. We have a lot of folks that are not getting paid…possible donors who have been laid off. It’s a hard ask right now, but it’s necessary for our business to keep us going.”

Pilon likened the center’s current fundraising campaign to the push for funds to rebuild the Bushy Hill Lake’s dam after unprecedented levels of rain fell in Connecticut in 1982, damaging the previous dam beyond repair.

Many small businesses are also relying on past supporters during this period of financial turbulence.

“When we moved to take out, we were truly overwhelmed with the community’s support,” said Lani Gargano of Chester’s Grano Arso restaurant. “Everyone has been extremely generous. That is something that has driven us to push and work harder every day and be more creative for our guests.”

Gargano, along with husband and co-owner, Joel Gargano, laid off all 17 staff members once the COVID-19 pandemic hit.

“So, right now it’s just my husband and I working,” said Lani Gargano. “It’s a good opportunity for us to remain vigilant and remain strong to keep this business afloat.”

The Garganos are offering employees a weekly family care package and “whatever it is that they need during the week. Our doors are open if they want to order a family meal or have coffee or if they need a sanctuary. At the end of the day, they are our family.”

Joel Gargano hopes they will all come back once restaurants are allowed to reopen.

“The reason that we decided to immediately lay off employees was to ensure that they can have a job to come back to,” said Joel Gargano.

In recent weeks, state and federal governments have been scrambling to develop financing solutions to help support small businesses and nonprofits impacted by the COVID-19 pandemic.

One of these state efforts, announced by Governor Ned Lamont on March 26, includes a program offering emergency $75,000 no-interest loans to small businesses.

On the federal level, a $2 trillion stimulus package passed by the Senate on March 25 and the House on March 27 is expected to offer relief in a myriad of ways including payments to individuals and families, through business loans and unemployment insurance benefits. Further details on how small businesses and nonprofits can benefit from the legislation is expected in the weeks ahead.

Find a list of restaurants offering take-out with curb-side pick-up at zip06.com.

Childcare slots are available at Camp Hazen for essential workers. Call the Camp Hazen administrative office at 860-526-9529 for more information.