When the economy shut down due to COVID-19 last year in March, certified financial planner Mary Lou Reid didn’t think the pandemic would be carrying on for so long.
“I thought our doors would open soon and that it was just around the corner to when our doors would open again but just around the corner is turning into a year,” said Reid, owner of the Reid Legacy Group in Murrieta.
The 30-year veteran of the financial services industry has not been able to consult with her clients in person since the coronavirus emerged last year. During the downtime, Reid has authored a book, Always Eat Dessert, and has added telephone coaching to her menu of services.
“Our financial planning clients are seniors and the elderly whom we cannot meet in person now due to COVID-19,” Reid told the Southern California Record. “Many of the people we work with are not able to use technology and get on a Zoom call, for example. Because of this, we are unable to provide some of our usual and necessary services which has impacted our income.”
The Riverside County resident is among the small business owners statewide who feel hopeful about a package of immediate actions, announced by Gov. Gavin Newsom last week, which are designed to help businesses suffering from coronavirus-induced economic hardship.
“We are glad to see that Governor Newsom has now quadrupled immediate relief for small businesses,” Reid said in an interview. “At this stage of my career, which is close to retirement, it's very unnerving to spend money I set aside for retirement on paying overhead expenses and salaries.”
Among the plans Gov. Newsom unveiled to assist business owners is to increase from $500 million to $2 billion what is earmarked as grants to give to 25,000 small businesses impacted by the pandemic.
“It would be helpful to be able to use that kind of grant money for business overhead expenses and employee salaries,” said Reid who added that she has been waiting to hear back from the county since December 2020 as to whether or not she will receive the $5,000 grant she applied for.
Relief for businesses also includes a proposal to allow deductions of up to $150,000 in expenses covered by Paycheck Protection Program loans. According to a statement online, all businesses that took out loans of $150,000 or less would be eligible to maximize deductions for state purposes and would extend to Economic Injury Disaster Loans.
However, the benefit wouldn’t help Reid who didn’t seek PPP assistance because she didn’t want debt.
“Borrowing is just another pressure and setback,” she said. “I just didn't want to be beholden.”
Barbers and hairstylists licensed through the Department of Consumer Affairs as well as restaurants and bars licensed through the state’s Department of Alcoholic Beverage Control can expect fee relief for two years under Gov. Newsom’s plan.
“It doesn't apply to me,” Reid said. “I'm not a startup where if I don't get a grant tomorrow, I have to fold and it's not like I am in the restaurant industry but I am jeopardizing my future essentially by paying my own money to keep my doors open.”