10 Ways You Can Help Local Businesses Survive the Pandemic

One of the biggest economic challenges surfacing during the novel coronavirus pandemic is the fact that a lot of local businesses have either shut down completely or are operating with severely reduced revenue. The longer the social distancing and operating restrictions last, the tougher it will be for those businesses to fully reopen and keep or rehire their staff.

At some point, the economy will reopen as the viral outbreak subsides. When exactly that will happen is still open for debate, but as the still-huge unemployment claims show, companies without deep pockets or outside of essential industries are in a world of hurt right now. If you want to help your local economy through these tough times, there are several things you can do. Here are 10 ways you can help those local businesses and their employees survive this pandemic.

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When you buy a company's gift card, you're essentially giving the business an interest-free loan. They get cash at the time of the transaction and don't have to deliver goods or service for that cash until the gift card gets redeemed. If you buy gift cards for your favorite local businesses now and wait until after the economy reopens to use them, you'll be helping them with much-needed cash today. Just be aware that if the company goes out of business, your gift card may wind up worthless.

ALSO READ: 35 Things You Should Know About Gift Cards

In many states, employers of tipped employees can pay those tipped employees a salary that's below the ordinary minimum wage in that state. If those tipped employees don't make at least the normal minimum wage after including tips, however, the employer generally needs to make up the difference. If your favorite local business is struggling, your generous tips can help put more money in your service provider's pocket and help the business' cash flow by reducing the need to pay those make-up costs.

Although credit cards are easy to use with very limited contact involved, they carry with them fairly hefty transaction fees that the business must pay. Debit card transactions involve much lower fees, and cash has no transaction fees, but note that cash may involve other costs for the business to securely handle it.

Beyond that, many electronic payment services offer fee-free payments if the service is linked directly to your bank account, but do charge you transaction fees if the service is linked to your credit card. Still, if the business accepts that form of payment and you can make it with either a fee-free method or one where you pay the transaction costs, it can help them keep their cash flows stronger.

Many hair stylists, cleaning professionals, and other small-scale service providers actually operate as independent contractors rather than as employees of the companies where they work. If their business is shut down due to the pandemic, they may be out of work at the moment, with only what limited unemployment or stimulus help they may have received. If you have their contact information, many of them would certainly appreciate any sort of tips you'd be able to provide while they're furloughed.

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You may think you're healthy, but one of the biggest problems in controlling the coronavirus behind this pandemic is that it may be spread by people who don't know they're infected. By wearing a mask and gloves while doing business with those local companies, you can help slow the spread of the illness if you happen to be infected and not know it.

ALSO READ: How Amazon Is Using and Selling Its Supply of Masks

As a service evolution designed to help protect both employees and customers, many companies have begun offering contactless delivery of their products. You pay for the products you're buying, any delivery service charge, and any tip you choose to give the delivery person online. Once your merchandise gets delivered, a phone call or message to an app will let you know where to find it. These days, it's a way to help support your local businesses while limiting your own exposure to outside risks.

If you have surplus masks, gloves, face shields, or any other personal protective equipment that you don't need for yourself, consider donating it to a local business for their employees' use. In many cases, personal protective equipment is mandatory for employees for businesses looking to reopen or stay open. Per OSHA rules, employers must cover the costs of any mandatory safety equipment.

For companies that are new to requiring personal protective equipment due to the pandemic, that equipment means added expenses at a time when revenue may very well be down. If you have unused supplies of such equipment that meet their needs, contact them and ask if they'd accept your donation. Your generosity just might be what it takes to help get them back on their feet that much more quickly and effectively.

If a local business you support had to cancel your order or event due to the pandemic, you can consider letting them keep the money they should refund you -- or at least applying it to a future purchase. That way, they can hold on to the cash they need right now, and you'll get some major goodwill points as well. Especially if you're a regular customer of a local business, that type of generosity will likely be long remembered and appreciated.

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Most companies have to pay their suppliers even as they're waiting on their own customers to pay them. With the efforts to control the pandemic slowing down the economy, those incoming cash payments from their customers can slow substantially, even if they will ultimately get paid. If you have a decent amount you're willing to invest to keep a local company afloat, you can consider a financial transaction known as factoring their receivables for them.

In such a transaction, you buy some or all of their accounts receivables -- the invoices they're owed by their own customers. By doing so, you can give them a substantial cash infusion up front with a decent chance of recovering your investment. Note, though, that you do take on much of the risk that their customers will not be able to pay those bills, so this is far from a guaranteed arrangement for you.

ALSO READ: Top Retailers' Playbook for Surviving the Coronavirus Pandemic

As you are patronizing those local businesses that are still active, recognize that their daily operations are likely much tougher to juggle today than they were back in February. Between extra cleaning and sanitation, supply chains stretched by the virus and resulting economic shutdown, and fear that anyone could be carrying the contagious disease, stress levels are high.

Even if you can't help your favorite local businesses out financially as you're adjusting your own family finances to the current reality, a little bit of extra kindness goes a long way. A smile, a "Thank You!," and a little extra patience if service takes longer than usual are all cost-free ways to help make a tough situation a little less challenging.

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