Senate bill would protect commercial tenants crushed by COVID
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Small business owners like Shawn Dixon have been fighting for small business support from the government since last year. Eagle file photo by David Band
By Rachel Vick
New state legislation could offer long-awaited protections for rent-burdened commercial tenants crushed by the COVID-19 financial crisis.
A bill introduced by Queens State Sen. Michael Gianaris Thursday would prevent personal liability provisions in leases from being invoked if businesses are forced to close during the pandemic. The provisions hold business owners personally responsible for the rent if the business can’t make its payments.
“Small businesses are the backbone of our communities and have suffered tremendously during the pandemic,” Gianaris said. “We must do what we can to keep these neighborhood institutions alive while we fight for federal and state relief these businesses deserve.”
Kambri Crews, the owner of Astoria comedy club Q.E.D., has advocated for the measure throughout the pandemic. She said the protections will give business owners “confidence to focus on rebuilding businesses and communities without the fear of utter financial ruination looming over them.”
She said she would have to shut down if the building owner invoked the personal liability clause forcing her to pay the rent out of her own pocket.
”This protection will keep business owners invested in their communities without the worry of personal financial devastation due to events entirely beyond their control,” she said.
Business owners who went months without revenue or relief have been saddled with additional costs to meet mandatory COVID-19 safety guidelines. Others, like performance space owners, have not been allowed to reopen at all.
Most have received little to no financial assistance.
“Small businesses have been asked to carry the entire cost and responsibility of getting this city back on its feet on our backs alone, without any help from the government,” said Long Island City barbershop owner Shawn Dixon at a small business rally over the summer.
Under the new measure, commercial tenants would be protected if they were required to stop serving food or drinks on premises, if they are a non-essential retail store subject to in-person limits or if they are business that was forced to close due to the March COVID-related executive order.
Qualifying businesses will be protected even after the state of emergency is over. Landlords who attempt to enforce the liability clause could be charged with commercial tenant harassment.
