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How much money has Atlanta’s water crisis cost local businesses?

Gillberg
How much money has Atlanta’s water crisis cost local businesses?

Atlanta water crisis: financial impact

Although water is once again available in the city of Atlanta following major water main breaks last week, the financial impact is far from over.

ATLANTA – Although water is once again available in the city of Atlanta following major water main breaks last week, the financial impact is far from over.

RELATED NEWS: Midtown’s Main Street Reopens After Water Main Break Repaired

Two major water main breaks in Midtown and Vine City caused many people, including small businesses, to lose water. Some have had to temporarily close their doors to adapt the way they do business.

“I would say I lost close to $3,000 or so. I’m a small business owner already hanging on a vine right now,” said Lance Robertson, co-owner of SBD+.

“We’re looking at $4 to $5,000 a day. That’s a lot of money for a small business,” Trinket Lewis, owner of MoreLyfe Juice Co., added.

While others, like Eleventh Street Pub, have yet to reopen.

Atlanta water problems hit some businesses harder

Help may soon be on the way for many Atlanta businesses reporting thousands of dollars in losses following a series of water main breaks. But some small businesses say they need help now. Mayor Andre Dickens announced the city would create a $5 million financial relief fund for businesses affected by the water crisis.

“We need to see how much humidity there is in the place. We need to get the mold out. We don’t know, we have no idea when we can reopen,” Michael Taylor, owner of the Eleventh Street pub, explain.

“We don’t know what probably would have been spent. We can kind of do an ex post analysis, but I would guess it’s in the tens of millions of dollars,” said Tom Smith, a finance professor at the University Emory.

Mayor Andre Dickens has since announced a $5 million relief fund for businesses. While it will help, experts say it likely won’t cover all of small businesses’ losses.

Atlanta water crisis: help for small businesses

Small businesses have been particularly affected by this crisis. Many have been forced to close their doors every day since the water pipes broke. But they could soon get a shot in the arm. Mayor Andre Dickens says he is establishing a financial aid program for small businesses that have lost money during the crisis.

“They can be covered in cents on the dollar, maybe 25 cents or maybe 10 cents on the dollar. That’s certainly helpful, but it probably won’t cover everything. But again, that would be very difficult, I think, for the city to find funds to cover everyone’s potential losses,” Smith said.

As the city struggles to repair and replace its aging water infrastructure, which Mayor Dickens said would cost billions to complete, experts say the long-term economic impact of the crisis is still up in the air .

“Georgia is one of the most business-friendly states, and Atlanta has many feathers in its cap when it comes to being the headquarters for Fortune 500 companies, if you will, the international presence. The fact that we have The Aging infrastructure gives potential businesses pause, I think that needs to be evaluated, it could pose a serious threat to our economy,” Smith said.

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