MILL CREEK — Like many small businesses, All About Hardwoods has suffered from the ongoing economic crisis. The Mill Creek company tightened its belt and tapped its savings, but it may have to reduce its work force of five employees this year.
“I can’t think about doing that,” said Dave Benson, who started the company six years ago.
The company could use help from the government, said Stephanie Benson, the company’s vice president and office manager. But when it comes to government bailout, small businesses seem to be out of sight.
As big banks and insurance firms secure taxpayers’ money, small businesses are often left to weather the recession on their own, the Bensons said.
They said they’ve always run their company with caution. They are happy with the size of their business. They’ve known three of their employees since they were kids. But the economic crisis that mainly stemmed from aggressive mortgage lenders is hurting their business.
“You are paying for the price of greed,” Stephanie Benson said.
As the economy deteriorates, more small businesses have contacted the Washington Small Business Development Center at Edmonds Community College, said Jennifer Shelton, the center’s director.
“This has been my busiest December,” Shelton said.
The center provides business advising, research and access to resources for free as well as low-cost training, Shelton said. The slow economy could give businesses a time to examine their operations and understand their financing. That could help them develop better tax strategies.
“There’s a lot of things that they can be doing,” she said.
Some businesses are planning to expand in 2009 despite the recession, Shelton said. Medical wholesalers, food product wholesalers and electronic repair firms seem to be doing well.
“Ones that haven’t been using the best practice are struggling,” she said.
Lenders are tightening their underwriting guidelines for small businesses, but they are still making loans, said Jennifer Kilgus, a regional administrator in Seattle for the U.S. Small Business Administration.
“We are doing everything we can as a conduit between small businesses and lenders,” Kilgus said.
The federal government continues to pump billions of dollars into banks to ease the credit crunch. The Bensons said they understand the concept. They can’t figure out, however, how chief executive officers of big corporations can ask for the government bailout, while still drawing big salaries and perks.
“I’m not frustrated. I’m not angry. I’m just baffled,” Stephanie Benson said.
Her business needs more customers, not more credit, Benson said.
The business took hits throughout 2008 even before the financial crisis started getting worse in the fall, the Bensons said.
As basics include gas, food and insurance got more and more expensive, households cut back on spending. All About Hardwoods saw an decrease in customers.
“These factors keep coming in. You feel like you are punching against a wall,” Stephanie Benson said.
Gas prices have fallen since the summer, but that was mainly because of a slowdown in the global economy.
“There’s always a trade-off. When gas prices were high, business was OK,” Dave Benson said.
The Bensons had to ask their four children — P.J., 18; Corbin, 11; Casey, 9; and Jackie, 6 — to spend less money during the holidays. The couple hopes that 2009 will bring positive changes.
“I’m anxious to see how things start shaking,” she said.
Reporter Yoshiaki Nohara: 425-339-3029 or ynohara@heraldnet.com.
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