Local businesses aren’t out of the woods yet

April 19, 2021  Hannah Cechini

DELAWARE – A local lawmaker is reminding Delawareans that the COVID-19 pandemic isn’t over yet, and small businesses still need support. “Even though we are starting to get out of this pandemic, we need to realize that over this past year our small businesses have been struggling,” said Representative Bryan Shupe.

According to the first state’s Small Business Administration, up to 98% of Delaware’s businesses fall under the small business category. About 55% of Delawareans are employed by small businesses. “The great thing about small businesses is they employ people in our communities. Then they go out and spend more money in our communities,” said Rep. Shupe.

Those statistics are why Rep. .Shupe says it’s so important to keep prioritizing the businesses next door over big box stores or national chains. “They are struggling to survive. A lot of them are still living off of money that is coming in from the federal and state subsidies,” said Rep. Shupe. “It’s so easy nowadays to click on an app or go online to shop for something. But think to yourself, ‘Can I purchase that downtown?’ or ‘Can I go to a local store, or look on their Facebook page or website?’”

Rep. Shupe says supporting small business can also help those business owners avoid higher unemployment insurance rates. “Every time that an individual is let go, then they have the opportunity to claim unemployment. As that happens for small businesses, or any business, your rates go up for unemployment. Whether that person is on unemployment or not, your rates go up for insurance,” said Rep. Shupe.

Lawmakers are working to exempt COVID-19 unemployment claims from those insurance rates, according to Rep. Shupe. “You can imagine having to lay off up to 60% of your workforce because of COVID restrictions, or just because of the pandemic and being a smart employer not wanting to potentially infect your employees. They won’t want that 60% to be an ongoing, year after year expense for your insurance.”

Rep. Shupe also says it’s important to remember the role of the education system in finding jobs. He says that way, the state can make sure there’s education that directs people to where the biggest needs are in the workforce. Rep. Shupe tells 47ABC an example of this is the work Delaware Technical Community College is doing to set up a diesel mechanic school Sussex County as a result of auto industry saying they need more workers. “Delaware Technical Community College has done a great job at this. They routinely go across the state of Delaware and ask employers what their needs are now, and what their needs will be in the future,” said Rep. Shupe.