This is a joint response from Redmond City Council Members Steve Fields and Jessica Forsythe.

We both have directly experienced the impacts of the pandemic as we ourselves are small business owners. Additionally, we have strong ties to our local business and non-profit communities and have heard many heartbreaking accounts of the direct impacts our business neighbors have faced over the course of the pandemic. As a point of clarity, we are referring to the thousands of organizations with under 25 employees; more commonly described as micro-businesses. 

These businesses and non-profits are comprised of dedicated people who have invested their time, money, and creative sweat-equity to create businesses that serve the needs of the people in our communities. Driven by a passion to make all our lives better, many have already leveraged their very livelihoods and limited wealth. These businesses follow the fabric of government rules and taxation, and deserve the respect, consideration, and safety that a compassionate, fair, and equitable government should provide. There are often times we, as business owners ourselves, wonder how we will get it all done. In this State of Emergency, micro-business owners don't have a team of lawyers, accountants, marketers, lobbyists, or elected leaders they can pick-up the phone and call on for support. Many of these businesses are Women-owned or owned by members of the Immigrant or BIPOC communities and make our communities more vibrant by sharing their culture, traditions, and skills. Many face language barriers, limited knowledge of laws, and lack of trust in government. 

Our work over the past year on Redmond City Council gave us an opportunity to work together to listen, support, and advocate for small businesses. We discovered we were both seeing the same devastating impacts and have a birds-eye view as we watch with dismay as a class of entrepreneurs are quietly and rapidly vanquished from our communities. These businesses need help. Meaningful help. They deserve a fair and equitable a government that will step-up on their behalf in the same way government has done for large corporations and banks. 

Here is a brief summary of the actions, considerations, and financial support mechanisms that we believe will make the difference between ruined lives and a prosperous recovery:

AMPLIFY OUR VOICE:

Small business owners are independent and do not regularly seek loans, unemployment benefits, or government assistance. In fact, they pay more than their share of taxes and commit their time to collect taxes for the Government, often under the threat of large fines and punishment. They seldom have the time to organize or seek the support of organizations with massive resources to help in these efforts. This pandemic has demonstrated how very vulnerable and underserved non-profit, small, and micro-business voices have become.

PROTECTION UNDER THE LAW: 

Through no-fault of their own non-profit, small, and micro-businesses can’t meet all of their lease agreements and other fixed costs. The economic loss due to shutdowns from the health crisis of the pandemic has created an impossible environment for businesses to succeed. The uncertainty that businesses have faced is underscored by the continued incremental strategy and response. The unevenness and delay of meaningful response from the Federal, State, and Local government creates uncertainty and tenuous relationships between landlords and tenants. 

All the while, non-profits and small businesses have remained nimble and flexible understanding this is all for the greater good. However, as it exists today, the entire legal burden is on tenants to make good. This means in addition to losing their business, their personal lifesavings and/or homes could be wiped-out entirely or are at risk. In addition, months-to-years’ worth of debt in back rent, lawyer costs, and other obligations is being accumulated to make property owners, banks, and utility companies whole. This is astoundingly unequitable.

We believe the State needs to enact requirements for landlords to work collaboratively with tenants to come to mutually agreeable terms to amend lease agreements that are now improbable due to the pandemic. Swift actions and protections are needed before the impending tsunami of court orders and eviction notices.

Additionally, businesses pay for Business Interruption Insurance and are facing denials on these claims. We believe the denial of these claims is a matter the State Attorney General’s office should review and investigate the legality and morality of. 

GOVERNMENT BACKED BUSINESS INTERRUPTION INSURANCE:

Private grants, State and Local government grants, combine with CARES Act funding, PPP loans have been the lifeline for non-profits and small businesses. Access to these funds have helped many avoid defaults and bankruptcy. However, rather than the cumbersome and time-consuming forms to apply for grants and loans that are complex, ever-changing, and unreliable, we believe government backed Business Interruption Insurance plan would build confidence. A State plan would provide a system based on direct loss and damages, be easier and less expensive to administer, and would be quicker to identify fraudulent claims. To a small business owner, a five- or ten-thousand-dollar deductible is a much more desirable option than the continued whiplash of applying for new funding sources.

FINANCIAL SUPPORT:

Many small shops – especially restaurants – will not survive without help. The pandemic has continued longer than any of us had anticipated. Going forward, we need a cohesive and unified strategy from the State, County, and Local Governments. 

During our City of Redmond budget process, the two of us along with another Councilmember lead an effort to build a funding mechanism to support impacted businesses. We proposed a number of different alternatives for short-term taxes on businesses that are doing well – or even seeing increased profits – during the pandemic. There was not a clear level of certainty on what City governments could legally do – regarding gifts of public funds and other restrictions – and the doubt that was created served to defeat our efforts and further our frustrations. A resource of direct actions that can be taken at the Local Government level is essential for communities across our state. 

We know your time is limited and tremendously appreciate and value your desire to support this broad and diverse community of non-profits, small, and micro-businesses and the people whose lives have been put on hold due to the pandemic. 

As elected leaders we must recognize the level of influence we have over whether or not we see a prosperous outcome for those who have entrusted us to serve – or – face knowing that we allowed an entire category of citizens to slip through our fingers. We have the responsibility to take action to uplift and uphold our democratic values and halt the growth of inequities. People’s lives and our communities are hanging in the balance as we continue to combat this pandemic together. We encourage all elected leaders to join us and fight for the health, well-being, and prosperity of all Washingtonians.

Please let us know if there is any more information we can provide. Thank you for fighting for all of us in Washington State and in effect the entire country.

SINCERELY,

Steve Fields,                                                 Jessica Forsythe,
City of Redmond                                        City of Redmond
Council Member                                         Council Member