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Updated: 2:09 PM Jul 13, 2009
Small Business Bailout Reaction
Staunton, Va. One small business in the Valley is reacting to the idea of getting stimulus bailout money. Posted: 8:18 AM Jul 12, 2009Reporter: Sarah Sager Email Address: Sarah.Sager@WHSV.com |
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One small business in the Valley is reacting to the idea of getting stimulus bailout money.
The restaurant has live music and regular business, but Shenandoah Pizza says it is feeling some backlash from the economy, especially with the rising cost of paying employees.
John Huggins, owner of Shenandoah Pizza, says, "We're having to pay a higher rate to get help and so I think we're going to have to cut hours back to adjust to that because of the situation that we're in."
However, Huggins believes the pizza business isn't hurting quite as much as some of the more expensive restaurants.
He says, "More expensive restaurants have been hurt because of the pricing maybe and we're a less expensive range for folks who have less to spend now."
Shenandoah Pizza may not need bailout money quite yet. Huggins is skeptical about the bailout money but says it isn't out of the question.
Huggins says, "I would say maybe no right now, maybe there are businesses that are struggling worse than we are and it could maybe help them out. But I mean, I probably wouldn't be opposed if there is some help out there a little bit, if it could help us out in some way."
Still, no matter what, he believe the City of Staunton keeps his pizza place open and alive.
Huggins says, "Staunton's been great for us. The city's really opened up to us and all the locals are definitely our bread and butter, that's for sure.
No decisions have been made yet about whether or not small businesses will receive stimulus money at this time.
Latest Comments
It's sad to see these small businesses not do very well, but maybe it's because they're not taking advantage of social media marketing like they should. It's cost-effective marketing, especially these days, and could really help them out and cut some costs given the state of the economy. Putting up a fun video on YouTube, Vimeo, and AdWido, for example, can easily generate interest among customers and potential customers for little or no money. Why not? Good luck to them.
The company has been unable to raise money in financial markets all year and had pleaded with the Federal Deposit Insurance Corp. to approve its application for a guarantee on its debt offerings like the government provided to most banks during the credit crisis. But the FDIC, worried about the company's junk credit ratings and exposing taxpayers to the risk of an impending bankruptcy, refused to budge. bill shor
If the immediate reaction to the recently approved bailout plan from Washington is any indication, financial markets are far from reassured about where the global economy is headed. Financial institutions everywhere are tightening up credit to the point that small business and regular folks have to seriously reconsider budgets and next year's expenditures.
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