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Saturday, November 16, 2024

Alameda auto glass shop owner looks to survive COVID-19 fiscal crunch

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An Alameda auto glass shop owner hopes the federal government can assist small business owners.

An Alameda auto glass shop owner hopes the federal government can assist small business owners.

Established as a local auto glass shop in 2012, Glass Tek in Alameda specializes  in professional windshield replacements as well as damage caused by vehicle vandalism including broken glass repairs. As with many other businesses, the initial impact  of COVID-19 was devastating. 

Glass Tek owner Marcel Sengul discussed the massive impact the pandemic had on his business, explaining that he had to layoff four of five staff members  with one remaining to service fleet accounts, insurance assignments, and some retail customers via the company's mobile van. 

Sengul added  that prior to the COVID-19 shutdown, Glass Tek was averaging 12 to 16 vehicles per day and numerous phone inquiries. Directly after the city of Alameda implemented shelter in place orders, repair jobs for the company plummeted to zero to two vehicles per day. 

"Once folks  got used to the new 'norm' and realized they still needed to repair  their vehicles, our car count had a slight increase to three to five cars per  day," Sengul said. "Still, devastating as you can imagine. Consumers were, of course, not driving as much and, in turn, not causing damage to glass on their vehicles."

Of the five original employees at Glass Tek, four remained laid off for more than two months under shelter-in-place orders when the company's  Paycheck Protection Program loan request was funded. The program was created as part of the The Coronavirus Aid, Relief, and Economic Security (CARES) Act to help small business survive as a result of losing revenue due to the coronavirus.

"Even though the volume of work coming in remained obscenely low, the four remaining employees were offered their positions back at work and all accepted," Sengul said. "Now we spin our wheels burning through the PPP funds without a noticeable increase in business coming in. Once PPP funds are depleted we may be forced to lay off employees again without another loan or grant."

Sengul says if Congress were to pass legislation to enable small businesses across the U.S. to endure the current and possibly another economic downturn, it would help the small business owner make up for the lost income caused by the pandemic.

"As our business insurance has, of course, excluded a pandemic as an insurable reason for loss of business, we are now faced with asking the federal government for help," Sengul said. "Without additional funds the business  may possibly survive - however, it would be at the expense of laying off  a minimum three out of five  employees. A bill structured similarly to the PPP loan/grant would allow us to keep a full staff employed, with regular paychecks, stimulating the economy."

Sengul, however, believes his business will bounce back from the traumatic fiscal pressure caused by the pandemic because the U.S. has business owners who are resilient when put to the test.

"Nowhere in the world does mankind have the opportunity to build a  small business with the same resources and freedom as we do in America," Sengul said. "This unfortunate situation can very well be a time for the federal government to show their support for the backbone of this country,- the  American entrepreneur."

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