Brewed Awakenings is the latest coffee shop to close its doors in Cedar Rapids in a year that has not been kind to area cafes.
Cedar Rapids coffee shops are dwindling in number thanks to the ongoing pandemic, which last month forced one popular spot to close permanently and another to move to online-only sales.
Brewed Awakenings, a longtime Coe College neighborhood favorite located at 1271 First Ave. SE, has announced it is closing permanently. In a Facebook post, owners Larry and Junetta Janda, said they had attempted to sell the business they purchased eight years ago at a discounted price.
"But no one stepped up to the plate," they wrote. "Sorry, but one of the best coffee shops in the Corridor is gone."
Current and former Coe students lamented the loss of their neighborhood hangout, including Leah Rea of Belfast, Northern Ireland.
"As a former international student at Coe, Brewed provided a lovely, warm and welcoming hub for all us international students coming to grips with life in the US," Ms. Rea said. "Thank ye for the memories and the wonderful service. Ye will be sorely missed - but fondly remembered."
Brewed Awakenings' closing follows news, also last month, that Blue Strawberry Coffee would shut its downtown Cedar Rapids-only location and transition to an online-only model. Owner Wesley Bryant announced in early August, the business would sell beans and merchandise on its website, closing down its 118 Second St. SE location to in-person foot traffic.
"In the world of COVID-19, this seems to be the best option for us," he said. "Many downtown businesses have switched to virtual workspace, which has resulted in less foot traffic through our door.
To meet the needs of our customers, we feel that switching to online only will best provide for all involved."
Gov. Kim Reynolds announced Wednesday that the Iowa Small Business Relief Grant Program will be reopened to provide relief grants to bars, taverns and other establishments impacted by the Aug. 27 COVID-19 disaster proclamation that closed bars in six counties -- Black Hawk, Dallas, Johnson, Linn, Polk and Story. Eligible businesses will receive a one-time $10,000 grant to assist with cash flow.
"One of our goals since day one of this pandemic has been to provide appropriate and timely economic relief to the businesses most impacted by COVID-19," Gov. Reynolds stated in a release. "A business that is forced to close, even temporarily, means a business owner, workers and families are affected. This short-term program can help bridge the gap for those local businesses as we work to slow the spread of COVID-19."
The extended program will be open to bars, taverns, breweries, distilleries, wineries or other establishments licensed to sell alcoholic beverages for consumption on premises. Those businesses not in good standing with the Alcoholic Beverages Division, Department of Inspections and Appeals or Department of Revenue will not be eligible for the grants.
"We're pleased to be able to provide a rapid response to assist our businesses in today's constantly-evolving environment," Iowa Economic Development Authority and Iowa Finance Authority Executive Director Debi Durham stated. "The new reiteration of the Iowa Small Business Relief Grant program now offered as the Business Disruption Relief program will provide immediate cash flow assistance to hundreds of establishments who have been closed due to the continued public health emergency."
As before, the reopened Iowa Small Business Relief Grant Program will be administered by the Iowa Economic Development Authority (IEDA). The application period will begin Sept. 10 and be open for two weeks. More information can be found at iowabusinessrecovery.com.
The program will be funded with CARES Act dollars and is estimated to cost $5 million.
Video: Taxi and rideshare drivers also feel pinch of bar closures
Drivers with taxi and rideshare services say they are feeling the impact of bar closures in some counties. Last week, Gov. Kim Reynolds ordered bars in six Iowa counties, including Linn and Johnson, to close amid a sharp increase in the number of coronavirus cases. News partner KCRG-TV9 reached out to Iowa cab and Uber drivers and learned that the closures are having an effect that extends past bar owners and operators. Read the full story and watch the video here.
COVID-19 pandemic motivating entrepreneurs to start businesses
The reasons founders listed for launching a business during the outbreak reveal that COVID-19 might have helped provide a push toward desires and goals that existed before the pandemic. CREDIT AZLO
Ninety-six percent of new entrepreneurs say the pandemic is motivating or giving them the motivation they needed to start their own business, according to a new report by Azlo, a banking platform for small business owners, freelancers, and entrepreneurs.
Azlo noticed an increase in new account openings in March despite massive economic upheaval due to the COVID-19 outbreak, and surveyed 1,000 new customers to find out why.
The survey found that from April through June of this year, four out of five of those customers (81%) had started a new business in the midst of COVID-19.
The entrepreneurial spark wasn't necessarily a reaction to getting laid off. Among founders, only over one in five respondents (22%) launched their business because of a layoff. A huge majority - 96% - explained that they've always wanted to start a business, and COVID-19 provided the push.
About 40% of respondents said the pandemic gave them the impetus they needed. About half stated that, because of COVID-19, they had more time to focus on their entrepreneurial pursuits. And two-thirds (63%) wanted to work for themselves, with more than half saying they had the desire to pursue something they were already passionate about.
Azlo's research also revealed some detail about the anatomy of small businesses emerging from the COVID era:
They're digital founders. Of the founders, more than two-thirds (69%) conducted business primarily online.
They're helping drive the economy. Thirty-nine percent of founders either have employees, or plan to hire in the near future as they scale.
They're bootstrapping. While access to capital remains a top concern for businesses, the survey found that new business founders didn't lean on outside capital to start their companies.
They're serious about their ventures. Among the founders who participated in the research, many formed an LLC, meaning they were at a stage where they wanted to have a more formal business structure. Nearly three out of four (72%) had an LLC, while about one in five (17%) were sole proprietors. About one-third - 30% - started a side business as a means to supplement their current day jobs.
These founders are here to stay. Research finds that an overwhelming majority (89%) plan to keep their current business as a source of income. In other words, starting a business during the pandemic wasn't a temporary "band-aid" solution or an in-between gig to survive.
They're aware of challenges that may lay ahead. Founders cited that the hardest parts about starting a business in the COVID-19 economy was marketing and finding new customers (41%), raising capital or having access to capital (26%), and dealing with income insecurity (25%).
Consulting: Tech adoption key to small business COVID survival
In this week's consulting spotlight, Tom Quaadman of the U.S. Chamber Center for Capital Markets Competitiveness
Small businesses are a cornerstone of the American economy, contributing $6 trillion in economic output and employing 85 million Americans.
Unfortunately, small businesses are also heavily impacted by the COVID-19 pandemic, with one in five closed either temporarily or permanently. With social distancing restrictions in place, small-business owners more than ever count on technology to reach consumers, market their products, and grow their business.
Examining the use of digital platforms as a whole in the United States before the pandemic, the national small business survey finds that the use of digital platforms by small enterprises is ubiquitous:
84% of small enterprises are using at least one major digital platform to provide information to customers.
80% are using at least one major platform to show products and services, as well as to advertise.
79% are using digital tools to communicate with customers and suppliers.
75% are using tech platforms for sales.
Now, during the pandemic, everything from the way consumers find and purchase products and services to the way small businesses market and ship their wares is enabled by technologies. As a McKinsey study found, the most effective way for small businesses to meet new hygiene and safety expectations is to design effective contactless experiences through adopting new technologies. For example, restaurants and retailers that have turned to digital capabilities and investments in technology fared far better since the pandemic began.
Forty-three percent of small businesses plan on expanding their businesses through digital and related technology as a response to COVID-19, according to a Verizon Business survey, and 30% have added ways to deliver products and services digitally.
To meet these increased demands and challenges, companies in broadband, data, social media, gig economy, automated vehicles, and more are stepping up to allow small businesses to continue to operate and serve communities.
Read the full column in this week's print or digital editions of the CBJ.
From around the web:
Cities big and small know they can't rely on federal stimulus to support their entrepreneurs, so they are finding innovative ways to keep them afloat. The New York Times looks at what cities around the nation are doing.
Tens of thousands of PPP loans worth billions of dollars may have been fraudulent, Reuters reports.
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Corridor Stocks
Short-Term Event Planner
Sept. 9
1 Million Cups, by 1MC Cedar Rapids, 8:15 a.m., online. Join for community connections and presentations by entrepreneurs, established companies, experts and more. Free. For more information, visit facebook.com/1MCICR.
1 Million Cups, by 1MC Iowa City, 9 a.m., online. Join for community connections and presentations by entrepreneurs, established companies, experts and more. Free. For more information, visit facebook.com/1MillionCupsIC.
Reimagining Your Workforce Webinar Series, by CLA, 2-3 p.m., online. This session, will provide an overview of ways to build and enhance your workforce. Free. To register, visit bit.ly/3iX7i4A.
Sept. 10
Remote Leaders' Online Roundtable, by Executive Coach Jennifer Zach, 10-10:30 a.m., online. Touch base with other leaders managing remote teams, exchange resources and share best practices. Free. To join, visit bit.ly/3j5gXqm.
What You Should Know about Chinese IP Law, by Nyemaster Goode PC, noon-1 p.m., online. Stephen Yang, managing partner and patent attorney with the Chinese law firm IP March, will explore the latest trends in IP protection in China. Free. To register, visit bit.ly/3gTRcHw.
Collins Community Credit Union Ribbon Cutting, by CCCU, 4 p.m., 1005 Blairs Ferry Road NE, Cedar Rapids. Celebrate the opening of the credit union's new corporate headquarters. Free. For information, visit collinscu.org/.
Headlines from KCRG-TV9
These news items are provided by KCRG-TV9
Gov. Kim Reynolds is defending her decision to disregard White House Coronavirus Task Force recommendations to slow down the spread of the virus in Iowa. Earlier this week, the task force released a report, recommending Iowa implement a statewide mask mandate along with other mitigation efforts, but the governor said her plan is smarter. She said she is working to target specific outbreaks, especially in Iowa's college towns. She also said recent outbreaks include people younger than 40, specifically between the ages of 18 to 24. This would include towns in Story and Johnson counties which are home to Iowa State University and the University of Iowa. "We know where it's at, we know where they are going," Reynolds said during a press conference Wednesday. "I have added additional mitigation steps to address it and that's been over a two-week time frame. And just like we saw early on when we saw the outbreaks in some of our processing plants, we went into the hotspot, we tested, we identified, we put in additional PPE, we separated those that were testing positive with those that were testing negative. We did the quarantine, and we brought them back down." The governor says the state will monitor next week to see if their mitigation efforts work. If they don't, they will take additional steps. It's not clear what those steps would be.
Iowa Workforce Development said on Thursday it is accepting claims under the Lost Wages Assistance Program.Those eligible could be paid an additional $300 a week through the Lost Wages Assistance Program, with the first payment including retroactive payments to the week ending on Aug. 1. IWD said it expects claimants to receive payments through the program in five to seven business days. Claimants must certify that they are unemployed or partially unemployed and be eligible to receive at least $100 in unemployment benefits a week. The state secured available funding for all five weeks of the Lost Wages Assistance program. The program will expire when one of the following things occurs: FEMA expends $44 billion from the Disaster Relief Fund (DRF); the total unobligated balance of the DRF decreases to $25 billion; legislation is enacted that provides, due to the COVID-19 pandemic, supplemental federal unemployment compensation or similar compensation for unemployed or underemployed individuals; or Dec. 27, 2020, which is the end of the period of performance for the grant. Find more information here.
These news items are provided by KCRG-TV9
Your KCRG-TV9 First Alert Forecast
Cooler and breezy conditions move in on Thursday following the passage of a cold front. This front will bring a shift in wind direction and drier air. Dew points fall into the 40s for Friday. A second, more powerful front arrives on Sunday with a shower/storms chance.
2020 has been a rough year for Cedar Rapids coffee shops
