Smallest businesses searching for ways to survive economic downturn

SANTA BARBARA, Calif. - In these tough economic times where small businesses are teetering on the brink of survival, some owners are showing their resilience by staying open, getting a financial stimulus where it's offered and planning for better days.

They will tell you how tough it is from the moment the conversation starts.

In recent weeks those who were looking for financial help spent hours filling out forms, trying to understand the requirements and talking to their bankers.

It hasn't always worked. Some lights will not go on again, in part because the uphill climb has been too difficult to overcome.

Other considerations have been the slow return of shoppers who are venturing out with uncertainty in some cases.

Staff sizes have changed, and employees who were college students, now studying away from the area, are no longer part of the workforce.

Unemployment in other cases has been more profitable for some sidelined workers than getting a job or taking some newly offered hours. It's a complicated equation on both sides.

At the Lovebird Boutique and jewelry store on De la Guerra Street in Santa Barbara, new owners Nancy Burgner and Peter Gaum said they made an offer and purchase when the store became available, even though it may have been viewed as a risk.

They saw it as an opportunity, "We wanted to keep this little gem alive and see it continue," said Burgner. "Loverbird has been such a special place in this community for so long and has such a loyal following."

The store features mainly women's clothing including tops, dresses, shoes, resort wear, beauty products and locally made jewelry.

"There are a couple of people that almost burst into tears when they came in the front door and said we are so happy you are still open," said Burgner.

Competition from the internet is intense and these owners encourage the in-store experience. Co-owner Peter Gaum said when you see a product on your computer, "it looks pretty in the pictures but then you have no idea what the fabric really is like, what the cut is really like." He says touching and feeling are a vital part of shopping for clothing.

The location in the Presidio footprint of downtown is a special site steps away from the origins of Santa Barbara history.

At 500-square-feet, a small business might be just the right size for the times.

"Small is beautiful and it's manageable. It's cozy and intimate and the space is so inviting for customers. It is not overwhelming," said Burgner.

The location is steps away from State Street which is going through a trial period where several blocks are closed off to vehicles and open to pedestrians and bicyclists.

Restaurants are putting more tables and chairs on the sidewalk and in the street in a decision that was made about a day before Memorial Day weekend. It's received many in-person reviews by people who have been stuck at home during the early stages of the coronavirus.

"It was amazing to see what the city did and what happened in the last few weeks. I think rules and regulations need to adjust and modify and the staff is doing a really great job," said Alison Jordan while making a purchase.

"I'm European so I am used to coming from European cities where you have huge pedestrian areas with cafes and restaurants and shops," said Gaum. He hopes revitalization plans downtown and in De la Guerra Plaza nearby bring more foot traffic to the area, and the Lovebird front door.

"We want to be part of a revitalization of downtown, this historic Presidio neighborhood, and become a destination that rivals the Funk Zone," said Burgner. "We want to be part of the conversations involved in downtown,
take action and move forward. We want to be part of it."