CSUN On Point

According to a recent survey conducted by the U.S. Chamber of Commerce, nearly three out of five small business owners fear the COVID-19 pandemic may force them to shut down permanently.

Back in March, Blazin’ Burgers, the Karmazyn family’s new vegan fast food restaurant, was set to open for the very first time. Then, the local public health officials declared the lock-down of most businesses due to COVID-19.

“We were on the verge of getting our permits,” said co-owner Marilyn Karmazyn, “and so that sort of came to an abrupt stop and that was probably the most challenging part of all this because we still had all of our expenses to pay.”

Blazin’ Burgers was among the many start-up businesses that had to go back to the drawing board with its financial plans, before it got the chance to open its doors.

But Karmazyn, who runs the restaurant with her daughters Kathryn and Kris, was able to open Blazin’ Burgers in July, and was able to succeed despite the turbulent economy.

Co-owner Kathryn Karmazyn says they owe their success and recovery to online delivery services such as DoorDash, Postmates, and Uber Eats.

In March, Congress created the Paycheck Protection Program, or PPP, to provide low-interest loans to help small businesses stay afloat. But surveys from both the America’s Recovery Fund Coalition as well as Save Small Businesses Coalition showed nearly half of these businesses said their PPP loan was not enough to keep them operative.

Nancy Hoffman Vanyek, president and CEO of the San Fernando Valley Chamber of Commerce, compared PPP toanother form of unemployment that ultimately small businesses use to keep their workforce on their payroll during the coronavirus crisis — particularly businesses like restaurants that are not able to open.

Small businesses are disappearing at a staggering rate, according to Hoffman Vanyek, who doubts 2021 will bring economic recovery.

Small businesses are not only vital to the economy, but they’re important parts of communities.

“We really work with our clients very closely,” said Brian Wisdom, an executive with IT firm Datalinks Networks, “and having that as a small business gives you that opportunity to build those relationships where as a larger business you are treated as a number.”

In mid-September, the San Fernando Valley Chamber met with the Department of Public Health. The chamber is maintaining a website for businesses with the latest updates and information on health orders at sfvresource.com. This website also contains information on business counseling, information on how and where to get loans and grants for your business.

In June 2019, CSUN partnered with the Warbond foundation, founded by Jane Werwand, which supports small to mid-sized business entrepreneurs. Clients involved in the program are welcomed to participate in LA’s Local Business Boost that supports all types of businesses providing individuals access to funding, mentorship and educational resources.

Professor Silvina Bamrungpong directs the Business Honors Program at California State University, Northridge. She advises anyone who aspires to start a business should first focus on developing a sound strategy, while still acquiring the finance skills.

This story was produced by the following:

• Amanda Alvarado, reporter
• Savanna Birchfield, moderator
• Casey Contreras, reporter
• Sophia Lesseos, anchor
• Kimberly Linares, reporter

Many Millennials are finding it difficult to gain full independence and purchase homes. Steadily becoming the most prominent demographic of people in America, they have surpassed the Baby Boomer generation by around 8 million, according to the U.S. Census Bureau. Yet Millennials earn 20 percent less than their parents’ generation. Forty-two percent of people age 18-34, according to the Pew Research Center, are living with their parents, which is the highest level since 1940.

“[It’s] the availability of jobs,” said Craig T. Olwert, CSUN Professor of Urban Studies and Planning. “Most of the millennials haven’t found well-paying jobs to help cover the costs [of home ownership]. I think with the recession finally really recovering on the job side, we’re going to see that start changing.”

California Association of Realtors Research Analyst Azad Amir-Ghassemi said the way residences are changing hands is shifting. “We’re going to go into a European model of homeownership,” he said, “where Baby Boomers have their homes, and then they transfer their homes down to their kids.”

Getting a higher education may lower some millennials’ ability to purchase a home. A survey by Amir-Ghassemi found that as many as 25 percent of millennials said that their student loans are keeping them out of home ownership.

The notoriously high cost of living in Southern California only makes matters more challenging.

“The average price of real estate here in Southern California is $472,000,” Sales Manager of Global Premiere Properties Adam Arteaga said. “And to qualify for a home loan like that, you’re looking at an income of almost $90,000.”

That qualification will be difficult for those without good credit. “Usually the banks like to look for a FICO score of about 650 and above,” Arteaga said.

The cost to rent in the Los Angeles area is also becoming not feasible. Research and analysis firm Axiometrics shows the average monthly rate for a one-bedroom apartment in L.A. County is $2,300, and the Inland Empire, it’s over $1,500.

But Arteaga said the situation is looking less dismal than in years prior. “Forty-five percent of all houses sold last year were [to] first-time homebuyers. For what rents are going for right now, you can almost obtain a home mortgage for that.”

Moderator: Noemi Salcedo

Producer: Dana Lites

Anchor: Flor Tolentino

Social Media Editors: Dana Lites and Char’Tre Steward

Reporters: Trevor Edwards, Dana Lites, Cynthia Marin, Noemi Salcedo, Char’Tre Steward and Flor Tolentino