Coronavirus stay-at-home orders have been a highly debated topic as of late. Some states, including Arizona, have begun loosening quarantine restrictions. Restaurants, retail, gyms, bars, casinos, and venues are slowly reopening with sanitation and social distancing protocols in place. Arizona’s current stay-at-home order is set to expire Friday, May 15, and Governor Doug Ducey doesn’t plan to extend it.
Our neighboring state California is reopening at a much slower pace. Los Angeles County plans to continue its stay-at-home order at least until July, if not August. Beaches will begin to reopen, but only to those who are engaging in activity such as running or swimming, i.e., no sunbathing. Travel is only allowed for essential activities, and most Americans are currently leery of air travel. This leaves the more than 10 million Los Angeles County residents with few options to alleviate their cabin fever.
Arizona Options for California Tourists
Springtime in Arizona means tourism-drawing events like Spring Training, Waste Management Open, the Arabian Horse Show, and Barrett Jackson. While Scottsdale and Arizona in general aren’t a secret to most Los Angelans, their visits are usually during this time of year to take advantage of the great weather and fun events. Los Angeles typically has the advantage in entertainment options such as Disneyland, Venice Beach, Coachella, the Hollywood Walk of Fame, and The Bungalow, but all of those will be closed for the near future. Arizona will be one of the closest places accessible by car for Los Angeles residents to get away. San Francisco, a city hit especially hard, and San Diego are expected to follow the rest of the state’s orders
Could Arizona Benefit?
Arizona is in desperate need of an economic boost. Like much of the nation, the COVID-19 Virus has left the economy of Arizona in shambles. Many people in Phoenix and throughout the state are seeking employment. Could many of the tourists who planned on heading to California end up in Arizona? Will this influx be enough to assist with the poor economy left by this Coronavirus Pandemic.
Although Arizona businesses are reopening with restrictions, any boost in customers from California should be welcome. Even basic amenities like gyms and pools will be an attraction for those who are still under lockdown. Another bit of good news, since businesses will remain closed in California, less Arizonans will be fleeing the summer heat there and spend their disposable income in state. Hopefully, this disposable “vacation” fees end up staying at home and spiking the decimated Arizona economy.
Where Hope for the Economy Lies
Even with reduced tourism competition and benefits provided by the CARES Act, some businesses in Arizona may never recover from the pandemic. There are many seasonal businesses that will be facing the impact of this pandemic as well. Water Parks, National Parks throughout Arizona, Aquariums, Museums, Ballparks, Amphitheaters, Music Venues, and many other summer time, schools out, destinations will soon feel the full impact of this COVID-19 pandemic. This aforementioned impact may push Arizona into a deeper recession.
Restaurants, gyms, movie theaters, and travel companies have begun filing for bankruptcy protection as sales near zero. Therefore, if you are a small business owner struggling with debt, our Phoenix Bankruptcy Attorneys may be able to help. There are multiple chapters of bankruptcy you can file that can benefit you in different ways, like saving your business or discharging personal liabilities towards your business debts.
Debt Relief Options for Arizona Business Owners
If you are a business owner in Arizona, be it Phoenix, Tucson, Scottsdale, or Glendale, our Arizona debt relief team can assist you with options to alleviate the recent debts created by Coronavirus. With over 30 million people filing for unemployment nationwide the past 6 weeks, this is despite trillions of dollars influxed by the CARES act. There are other steps that must be taken by these businesses.
Other ideas that may help small businesses in Phoenix stay in business include:
Applying for Federal Assistance Programs like PPP (Payroll Protection Program)
Take advantage of Tax Credits offered by the Government.
Get Creative! Use Your Resources and curtail towards Pandemic.
While our attorneys are prepping for a increase in Chapter 7 and Chapter 13 personal bankruptcy filings in Arizona. We also realize that many small businesses will seek the relief of a chapter 11 bankruptcy in order to reorganize their debts with the hope of surviving this virus. Hopefully, Arizona will snag some of California destined tourists. Any possible solution is welcome. For additional information, contact our Arizona team of attorneys. Together we can survive this pandemic.