Small Businesses Hurt by Crime Turn to Congress for Assistance

WASHINGTON — A nationwide outcry against crime that hurts small businesses reached Congress Thursday, where lawmakers and congressional witnesses called for a law enforcement crackdown.

Thefts cost retail stores $112 billion in 2022, according to the National Retail Federation. Preliminary law enforcement reports for 2023 show no improvement.

“This is enough to force some small businesses to close their doors for good,” said Rep. Roger Williams, R-Texas, chairman of the House Small Business Committee.

Adding to the problem is gun violence, some of which is directed at store owners during robberies or altercations.

Although it has declined slightly as the COVID-19 pandemic eased, more Americans died of gun-related injuries in 2021 than in any other year on record, according to the Centers for Disease Control and Prevention.

“Businesses are being forced to hire private security services,” Williams said.

A police chief from Norwich, New York, said the pandemic and bail reform measures combined to explain why crime is tormenting small businesses.

Psychologists blamed economic strife and stress created by COVID-19 for a mental health crisis, some of which spilled over into violence and other crimes.

Bail reform refers to a movement in the past decade to give economically disadvantaged persons the same opportunity to be released from jail pending trial as wealthier persons. The reforms consisted largely of eliminating cash bail requirements for misdemeanors and some felonies, thereby making it easier for criminal suspects to be released until they are convicted.

“Oftentimes we arrest the same individuals five, six or seven times before they are even arraigned in court,” said Norwich Police Chief Reuben Roach.

One of the results was an increase in homelessness, loitering and drug use in Norwich’s downtown business district, he said. 

Forty of the city’s business owners recently organized a coalition to ask city officials for tougher nuisance laws to keep potential troublemakers away from the places they work, Roach said.

Similar stories are reported in other cities, particularly where gangs of smash-and-grab thieves rush into retail stores to steal large amounts of inventory before selling it for big profits through online platforms like eBay.

A related incident was reported Wednesday in Los Angeles, California, where police raided a building that was used as a repository for high-end stolen merchandise the thieves planned to resell. Police estimated the value of the stolen eyewear, clothing, jewelry, designer bags and other items at around $300,000.

In Columbus, Ohio, last year, the mayor asked businesses in a popular entertainment district to close at midnight on weekends. He said it might help reduce violence that had plagued the neighborhood.

In Washington, D.C., the city’s mayor announced a $1.1 million grant program in November to aid businesses threatened by crime in three commercial corridors. Much of the money is supposed to help business owners pay for new security systems.

During the House hearing, Jerry Scott, president of the western states restaurant chain Elmer’s Restaurants, Inc., discussed how his company’s employees and patrons sometimes feel intimidated by crime.

At one restaurant in Washington state, 15 patrons had their vehicles stolen. Another restaurant in Portland, Oregon, was forced to close because of crime, he said.

A third restaurant was compelled to hire a private security service, which diminished its annual profits by 40%.

“We cannot do it alone,” Scott said in a plea for assistance from Congress.

Rep. Aaron Bean, R-Fla., summed up his ideas for dealing with the crime by saying, “Locking up bad guys, crime goes down.”

Rep. Nydia Velazquez, D-N.Y., recommended caution before enacting tough criminal laws that might deprive suspects in minor crimes of their freedom and their career opportunities.

“I urge my colleagues not to engage in knee-jerk reactions,” she said.

She added, “Proposals to change laws should be made on accurate and complete data.”

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