Transcript for Small businesses in California fighting to survive with restrictions, lack of support
So here you can see what is a really expensive warehouse and storage facility now. Reporter: This empty 10,000 square foot gym is the financial responsibility of Jared pearl mutter, J.P. As he's known. We have to maintain it. Cleaning crew comes out every night wide receiver we change out the hvac Hepa filters because we have staff and members that come in. Reporter: He's expected to pay full rent, a staggering $30,000 per month. Six, eight people over here stretching. Reporter: Even though he's currently prohibited from using the space for regular business. He's one of about 4 million small business owners in California trying to keep the lights on in one of the most restricted states in the nation. We're operating at 50% as far as our ability to offer programs. So not only are we limited to 50%, we're now limited to the number of people we can service at 50%. Reporter: Gyms have not been allowed to operate indoor business for almost a yes, sir in L.A. County. It was this parking lot and the loyal clientele that allowed J.P. To reopen this summer at reduced capacity. The sec it opened back up, yes, sign me up. Reporter: As Texas and Mississippi eliminate mask mandates and reopen, California's governor continues to take it slow. We have to be vigilant, we have to be mindful. Reporter: California has lost the largest number of small businesses of any state, more than 15,000 shuttered in los Angeles county alone. With only 12% here getting a vaccine dose so far, and a more contagious variant of the virus running rampant in the state, we spent the day with three small business owners whose resilience is their best asset. We're California. This is the land of dreams. The richest people on Earth live in California. You're telling me that we can't create a few solutions? I'm going to fight, fight, fight and look for ways until everything is starting to get better. I can tell you 100 businesses that need that miracle right now. We're brick fit innocence west Hollywood, California. Brick fitness is a group class instruction facility. All right action guys, welcome. Rowing and bike and jump roping and movements on the ground, barbells, dumbbells, et cetera. . Reporter: Before the pandemic, J.P. Says his 11-year-old business had 28 employees. He's let go of half. The cost of doing business has only increased. Increased expenses to operate safely outdoors is between $10,000 and $12,000 a month. Increased cleaning crew. Tent rentals. Equipment. Maintenance is five times what it was on equipment alone. Reporter: Adapting while complying to a myriad of rules. For this gym, outdoors, masks, no music or loud instruction. You can see some of them have their airpods in. So they can listen to their own music. Then they have to focus and listen intently because the coach can't scream. Reporter: A 30-minute drive away is historically Latino east Los Angeles. Chico's, can I help you? Reporter: San Sanchez is getting ready for the lunch rush. Chico's restaurant in highland park, California, my restaurant. Where we've been since 1983. We started from scratch. Reporter: The state's shutdown of indoor dining last March forced 58-year-old senin to innovate immediately, turning to delivery apps. I had to jump into the technology, otherwise I will be totally dead if I'm not on the website or using the media. Door dash takes 30%. I believe grub hub takes 25%. I've been able to make mortgage payments, my rent on time, my bills are paid. So if I break, I'm okay. Reporter: He's been blessed with a landlord who's kept rent So people eat every day, and thank god they like my food, so I'm blessed. Reporter: He's one of the lucky ones. Latino-owned businesses have been more impacted by the pandemic than other ethnic groups. Because Latinos in L.A. County are dying at three times the rate of white residents, he's in no rush to open his dining room. We have to give respect and follow the rules. Because they're doing their best they can. So we have to do the best we can according to the rules. No more outdoor dining in L.A. County, at least for now. Officials announced more restrictions as coronavirus cases continue to surge. Reporter: L.A. Restaurants and bars have gone through three rounds of closures or restrictions on service. Many that have not folded are in massive debt. Including the owner of this neighborhood bar. How are you doing? Reporter: Angela Marsden. We're in Sherman oaks at pineapple hill grill and saloon, at my bar. I'm in debt even with the gofundme. I got the ppe and applied for the sba loan. I took that money and I paid my staff, I paid for the patio, I paid for all the covid stuff. Reporter: Angela first spoke with "Nightline" last March. She received the news of the mandatory shutdown. You know, it's almost 5:00, and we're open from 11:00 to 8:00, and we only have $140 in and that doesn't even cover the two people that we're trying to keep employed. Reporter: She eventually built an elaborate parking lot patio for outdoor dining. I've taken a loss every month, $20,000 to $30,000. Overall I've lost over $500,000 in revenue that would normally be coming in. Reporter: She says she's spent $80,000 in adaptations to the restaurant. Ppp loans she received evaporated quickly. By November, another shutdown. They basically shut us down two days before Thanksgiving. I went out and bought $10,000 worth of food to sell that now can't be sold. Reporter: She recorded a video that went viral, blasting the state for deeming businesses like hers nonessential. Mayor garcetti has approved this being set up for a movie company. Look at this. Tell me that this is dangerous. But right next to me, as a slap in my face. My real complaint was never with the the movie industry. My problem was with garcetti and Newsom. They're the people that are making the rules. Reporter: With the parking lot patio finally reopened, Angela is part of a movement to recall the governor. For Angela, business is personal. It's not just a living, it's her life. The pineapple hill grill and saloon, it represents a real meeting place where people meet here. I hope that I own this till the day I die. Up next, a double lung
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