Palos Verdes Small Businesses Struggle To Stay Afloat As Coronavirus Shutdowns Cause Financial Strain

PALOS VERDES (CBSLA) -- A hair salon, a sushi restaurant, and a clothing boutique are all among the small businesses at Lunada Bay Plaza in Palos Verdes that are struggling to stay afloat during the coronavirus pandemic.

All of the business owners in the normally bustling shopping center say they're in jeopardy of shutting down if they don't get help soon.

"The last time we checked we were at about 40 percent that we've lost," said Richard Dominguez, whose family owns Rafaello's Pizza.

They've been in the plaza for almost 40 years. Although they've been able to stay open for now, they still fear they won't be able to make ends meet.

"The bills aren't stopping," Dominguez said."The only thing that's stopping is the money coming in."

The shop hasn't received any help from the government, either. They've been denied loans by the Small Business Administration and the Paycheck Protection Program, leaving them wondering how they'll keep their doors open much longer.

The story is the same across the street at Nirvana Salon. Owner Peggy Wright said the salon has been shut down for seven weeks. She also applied for a loan, but hasn't received anything so far.

"Still, every day I get an email saying 'your application will be processed...whenever," Wright said.

CBSLA spoke with half the businesses in the Lunada Bay Plaza, and none of them have received any assistance.

"I know everyone has applied for it," Dominguez said.

In fact, one business has already had to close permanently due to financial struggles. Palos Verdes Yoga & Fitness announced Thursday that it will not reopen once stay-at-home orders have been lifted.

"I thought I lived in a country that helped the little guy," said owner Michelle Libeu-Babich.

She has owned the yoga studio for the past six years and said her family is devastated to see it close.

"It's a family dream," she said. "This is not just my income. It's what I saw our future looking like."

Although Michelle's business is the first to close, other business owners in the plaza worry that it will not be the last.

"I just hope that the government starts helping some of these businesses out, because a lot of businesses are not going to be able to hold on any longer," Dominguez said.

The business owners in the area have set up a website to purchase gift cards for any of the shops.