Three days after Standard & Poor's downgraded the U.S.'s credit rating, local small business owners fear a return to the Great Recession.
David Bolotsky, the founder and CEO of online and catalog retail company Uncommon Goods, said his business hasn't been affected since the stock market plummeted last Thursday. But he is worried about what the downgrade means for the future.
"I'm most concerned short-term with the psychological impact on shoppers," he said. "In 2008, when the stock market was cratering, our business definitely saw the impact day-to-day."
Susan Doban, president of Doban Architecture and its affiliated design studio, Think Fabricate, said her business has only just started to recover from the Great Recession. She recently hired three employees, and is worried that the economic uncertainty stemming from the downgrade might make her regret that decision.
"We see a lot of uncertainty in terms of people wanting to go ahead with projects, and I think people will be less inclined to take risks," she said.
Michael DiMarino owns Linda Tool, a manufacturer of machine parts in Red Hook, Brooklyn. He managed to maintain his entire staff through the recent recession, but the U.S. credit downgrade has him worried.
"Between the weakening of our position because of the economy and keeping our staff in place, and now if the credit market tightens, it's a double-edged sword for us," he said. "Credit's never been as important as it is now."