To the struggling Mom and Pop store owners and their Landlords,
Time has come!
The rents are due and we cannot pretend like coronavirus has not affected us. The main reason why
we are losing the battle against coronavirus is not only the virus itself, but the daily uncertainty it has
created in our lives and our economy. We can get one step ahead of this virus and the financial
burden it has on our property owners, the management companies, and our small businesses.
SBA loans were a bust!
These payroll stimulus loans were obviously an embarrassment and disappointment on either side
between our government and small businesses. These loans were not intended for covering rent,
but heavily focused on payroll. Most mom and pop stores usually have very little to offer as payroll
since they work themselves. Businesses who have applied for common loans like PPP and EIDL,
are expecting very little to none since SBA ran out of money. Not to mention over 25,000 approved
applications are worth 2 million dollars each, whereas only one of those approved applications could
have saved an entirety of all small businesses in a mall. The money did not go to where it was
intended and took many revisions and has become the biggest fiasco leaving property owners and
small businesses in an unsolved dilemma.
Neither the tenants nor the landlords are able to keep their responsibilities towards each other!
Tenants are responsible for paying rent, and the landlord's responsibility is to provide traffic. The
rental value of a location in a mall is equivalent to how much traffic they provide. Due to global
quarantine, malls and their tenants are forced to close down. We all know that even once the
doors open, people are not going to be running to the malls to spend a ton of money right away.
There will be a curve in sales leveling in at least 4 years.
Extended lease option may be our only chance!
We must find ways to help small businesses fulfill their rental dues. There are many ways to do this
and the most common offer out there is the extended lease option. It is like pausing time and your
rent doesn’t change but instead the period of time you are closed down is added to the end of your
lease. So you aren’t paying for rent for when you are closed, but you will be paying the same amount
of rent for the remaining of your lease term and the extended period on top of that. This puts
pressure on business owners to match their sales as they open up and keep their agreed rents from
before the pandemic to a longer extent. But it gives a fighting chance. This seems to be a fairly
understandable compromise for both sides.
We must get creative in bringing the business back!
The property managers and owners must work together with small businesses with creative
solutions by thinking outside the box and adapting new services and products.
We can prevent closures and endless battles of Force Majeur by coming to the table today!
The property management or owner may still ask for a full amount as if there is no global pandemic.
When we signed our leases a global pandemic that happens once every thousand years or so was
not something foreseen. Even the most powerful and all intelligence provided man, the President of
the U.S.A. did not see this coming up until 2 months ago. We can’t expect a mom and pop store to
foresee this global collapse and expect to be in binding of an agreement of a trap of sorts. There is
no jury or court out there that will let this fly. This will cause a public outcry.
Acting like nothing is happening will cause the collapse of many small andlocal businesses!
The effects of folding small businesses will reach out to the state and will cause a second wave of
global financial crisis. Because the money you spend in a small and local business stays in your
community, creating an economy that benefits your neighborhood. When a small and local business
can’t survive, they become homeless, a burden on the government, and a financial strain on the city
and state economy due to taxes and more.
This is what my landlord offered and why it won’t work!
My Landlord postponed one month’s rent to 90 days, as if we will have money to pay double the rent
by then, especially after paying the other closed month and a slower traffic even when opened.
Let’s #standbymomandpop for a fighting chance!
We can talk or we can walk the plank of bankruptcy. Your small and local mom and pop store is not
asking for a handout, it is asking for a fighting chance. Please bring ideas in person or online.