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When COVID hit in 2020, the film and TV industry came to a sudden halt, leaving small businesses that service this industry in a state of uncertainty. Local governments stepped in by offering PPP funds to struggling businesses, which helped them maintain a modest baseline income. As Hollywood worked towards developing COVID protocols, some businesses even hired extra staff to accommodate the demand and implement new cleaning measures.

The extended work stoppage caused by the ongoing writers and actors strike has taken a toll on these same businesses, leaving some owners to argue that the current situation is worse than the pandemic. Pam Elyea, owner of History for Hire prop house, expressed her concerns about the lack of resources provided to small businesses during the strike. She mentioned the heartbreak of being unable to provide a living for her staff and the feeling of being alone in this situation.

According to a report from the Milken Institute, the SAG-AFTRA and WGA strikes have cost the California and Los Angeles economies an estimated $5 billion, with the actual impact potentially being much greater. This not only affects below-the-line professionals who are out of work, but also the support industry, including prop houses, caterers, and equipment manufacturers, which play a vital role in keeping the film and TV business running.

Simon England, who runs the custom slate manufacturing company EnglishStix, shared his struggles since the actors went on strike. His company, which heavily relies on TV shows and studio projects for business, has seen its revenue disappear since the strike began in July. In an effort to cope with the situation, England has had to reduce hours for his staff, and he foresees the possibility of a full shutdown if conditions don’t improve soon.

The challenges faced by small businesses during the strike are different from those experienced during the pandemic. Unlike COVID, these businesses are obligated to keep their doors open to avoid losing their space to landlords who can easily find other tenants. As a result, they can’t just go dark and stay at home, and they continue to face utility and maintenance costs. Marc Meyer of Faux Library, the largest prop house in the San Fernando Valley, expressed concerns about his predicament, fearing that he may have to send valuable pieces to auction in order to satisfy his landlord’s demands.

Furthermore, the impact of the strikes was felt early on for some businesses. The anticipation of a work stoppage caused a slowdown in business as early as April, leaving many unprepared. Adrianna Cruz Ocampo of U Frame It Gallery, which specializes in custom framing for studio set decorators, has gone through her reserves and is still paying her staff. However, with very little business, her staff has run out of tasks to occupy their time.

Unlike during the pandemic, neither Los Angeles County nor the state of California has passed a bill to provide financial assistance in the event of a Hollywood work stoppage. This has led to calls for a business interruption fund specifically for the entertainment industry. Small business owners, such as Pam Elyea, have joined rallies and demonstrations, demanding government intervention to help them keep their doors open during this difficult period.

Paige Simmons of Dine With 9 catering highlighted the lack of government assistance for businesses dealing with the strike, particularly in California. She expressed the need for a more comprehensive effort to support struggling businesses, as grants and other programs fall short of a full force effort.

The length of the strike has been a significant source of concern for these small businesses. COVID, although challenging, lasted for only a few months, and business gradually picked up afterward. However, the ongoing strike has had a prolonged and devastating impact. Business owners, like those at U Frame It, understand that even if the strike were to end soon, it would still take time for the production pipeline to get back on track. They anticipate a slow recovery, with new business possibly not arriving until the new year.

There is also the fear that the industry won’t produce as many shows as before, which means the business many of these companies relied upon may not fully return. Marc Meyer expressed his feelings of letting his employees down and the frustration of being unable to stay open and work.

In this challenging situation, AI legalese decoder can provide assistance to small businesses in the film and TV industry. This AI-powered tool is designed to simplify complex legal jargon and contracts, making it easier for business owners to understand their rights and obligations. With the AI legalese decoder, small businesses can navigate through legal documents related to the strikes, such as contracts with unions or production companies, ensuring they are aware of their rights and can make informed decisions. This tool can save businesses time and reduce potential legal pitfalls, allowing them to focus on recovering from the impact of the strikes and rebuilding their businesses.

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