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Corona epidemic besieges small businesses in New York

New York: Small companies proud of New York are closing their doors one by one due to their inability to weather the slowdown in economic activity caused by the spread of the emerging Corona virus.

And the "Biscuit & Bath" network of dog care in Manhattan had kept some of its centers open at the start of the health crisis. But Friday decided to close all its posts and to fire all its employees.

"We believe it is the best way to protect the health of all of us," Chief Executive Scott Smith said in a message to clients.

Gaetano Arnone, the manager of the Auto Innoteca restaurant, also stopped working, saying that delivering meals to homes was not enough to cover the monthly expenses. "Last night, we reached $ 400, and this is not enough to continue employing people or ensuring their safety," he said by telephone on Friday.

These companies are an example of the risk of disappearing faced by small and medium-sized companies in New York, where economic activity slowed sharply due to the isolation measures taken to contain the emerging Corona virus.

The health crisis affects major companies in all sectors, but the biggest damage has been to small companies that do not get loans easily and their incomes have declined.

President Donald Trump has passed a law that includes a massive recovery plan worth more than $ 2,000 billion to tackle the ailing economy. But many experts fear that the promised aid for small businesses will not arrive in time to save them from bankruptcy.

"She needed help two weeks ago, not today or tomorrow," said Adam Levittin, professor of bankruptcy at Georgetown University. "As long as we do not know when the Corona virus will be encircled, a major disruption will occur before small companies can rise again and resume their normal activities," he added.

- Unemployment.

Biscuits and Bath last Wednesday promised their customers to continue their service. The company's service was considered "essential" because it takes care of the dogs of hospital workers and takes a walk to the dogs of injured or quarantined dogs.

But only two days later, after studying her revenues and expenses and the deteriorating health situation in New York, she stopped working. "We had no other choice but to close the doors," said David Maher, sales and marketing officer at the company. He explained that his former colleagues had offered to house dogs, if necessary.

Otto Enoteca, located in the upscale Nuhu neighborhood near New York University, was part of the Joe Bestianic Empire and was a popular restaurant owner.

Gaetano Arnone confirmed that the number of customers has decreased for several weeks. "We have seen reservations go down gradually," he said, explaining that "when we look at the computer screen, it's like watching the stock market."

When New York ordered the closure of its restaurants except for those preparing meals for sale, the employer who spent the majority of its 45 employees was reduced to offer only to pasta and pizza, explaining it was “affordable”.

But after three days, he realized that it was futile.

His wife spent her work adding to the suffering of the two spouses who were enjoying health coverage from the employer in the hotel where his wife works.

The only positive thing is that the owner of his restaurant seemed understanding about paying the rent.

The man intends to apply for unemployment compensation. He and his wife will go to their home and intend to join a group of motorcyclists to transport medical supplies.