Newsom's Lockdown 'Regret' Met with Scathing Criticism from Small Business Owner

California Governor Gavin Newsom's recent statement that he may "regret" some of the COVID-19 lockdowns he implemented in 2020 has drawn sharp criticism from a small business owner who describes enduring severe financial hardship as a result.

Tina Marie Schneider, owner of Spin 360 Core Fitness in Glendora, California, stated that Newsom's expressed regret is "far too late" for individuals and businesses still struggling with the aftermath of the pandemic-related restrictions. Schneider's cycling gym, opened in 1998, was forced to close for 58 weeks due to California's extended lockdown policies, which she contends were among the longest in the nation.

Upon reopening, the gym faced stringent capacity limits, starting at 5% and gradually increasing to 15%. The reintroduction of masks, plastic barriers, inspections, and fines, coupled with messaging that encouraged fear of social interaction, led to the loss of 87% of her members. "Customers who had been loyal for years were told to be afraid of one another. Many never came back," Schneider wrote.

Schneider also detailed her experience with the U.S. Small Business Administration's (SBA) Economic Injury Disaster Loan. She explained that the loan amounts were calculated based on her business's healthy financial records from 2018 and 2019, prior to the pandemic. These figures did not account for the prolonged shutdown, lost customers, or the lingering climate of fear. The loan funds arrived in late 2021 and early 2022, when the business was operating far below its pre-pandemic capacity.

According to Schneider, the SBA offered a short hardship period of reduced payments, after which the original payment amount resumed, a schedule she described as unfeasible for a business that had been fundamentally altered. She stated that the offered alternatives were to "die, or close the doors and file bankruptcy."

An SBA agent reportedly acknowledged receiving millions of letters from businesses facing similar predicaments, with loan amounts based on pre-pandemic performance proving unsustainable for businesses decimated by lockdowns. Schneider noted that many local restaurants and gyms did not recover, with storefronts remaining vacant.

She contrasted the challenge of starting her business in 1998, when indoor cycling was new and customers were driven by curiosity rather than fear, with the current situation. Starting over now, she explained, involves battling persistent COVID-19-related anxieties, increased operating costs, and a loan structure that assumes pre-pandemic business levels, all while navigating a state policy that mandated the damage. "California did this to small businesses. Not a virus alone. State policy. Capacity limits. Mandates. The message that social gathering was dangerous," Schneider wrote.

Schneider continues to operate her gym and make affordable payments, having sent numerous letters to seek relief. She argued that a state which enforces a 58-week closure should not then impose repayment terms as if no closure had occurred, likening the situation to the 2008 financial crisis where credit was extended against an unrealistic economic outlook.