500 signatures reached
To: Governor Newsom & All State Legislators
Small Business Rent and Lease Renegotiation - COVID-19
We, non-essential small businesses, would like to have our rents forgiven during the mandatory closure, and the right to renegotiate our leases for the remainder of the lease terms. In Santa Clara County many businesses have not been able to reopen since March 16, 2020, or have reopened at reduced capacity of 10-30%. Meanwhile our bills and rents have not stopped.
We would like Governor Newsom to issue an executive order that would provide rent forgiveness during the mandatory closure, and the right to renegotiate our lease for the remainder of the lease term. Property taxes during the closure should still be paid to provide the necessary funding for our local and state governments.
Why is this important?
In the last 5 months and counting, non-essential small businesses have not been able to open or generate any revenue, while rents and other expenses are still owed. County specific moratoriums only delay the payment of rents and evictions and do not protect small businesses from landlords collecting rents due from the mandatory closure.
To obtain a commercial lease, small business owners personally guarantee the lease. Not only is the small business itself at risk of closing, business owners will face bankruptcy if landlords expect all rents during closure to be paid and expect rents to continue to be the same amount while the economic landscape has drastically changed.
Commercial leases are generally very lengthy and primarily tip in the favor of the landlord, leaving the tenants little to no rights for rent relief or renegotiations.
To-date, most non-essential small businesses that are allowed to reopen are operating at 10-30% of regular capacity, while some businesses are not able to use outdoor space to reopen, and others are not able to reopen at all. While earning zero to reduced revenues, overhead costs have also increased significantly for businesses with the new mandates to provide PPE, additional cleaning and sanitation, hazard pay, and other COVID-19 related expenses. It is nearly impossible for small businesses to survive the impacts of COVID-19.
Small businesses are the backbone of the American economy. Without financial relief or a law in place to provide protection against commercial leases, more businesses will close and owners will declare financial bankruptcy.
It is vital that Governor Newsom issue an executive order to provide small businesses relief and protection, and the ability to weather through the long term impacts of COVID-19 on our economy.