The $350 billion loan program for small businesses will soon need more funds because of the huge demand for federal assistance. Senate Majority Leader, Mitch McConnell, said "It is quickly becoming clear that Congress will need to provide more
funding or this crucial program may run dry. That cannot happen." On Monday, House Speaker Nancy Pelosi (D., Calif.) told the Democratic
caucus in a call that there must be more assistance for small businesses
and for those who rely on food stamps, according to multiple Democratic
aides. She indicated she saw this new funding as part of a new $1
trillion bill, on top of the $2.2 trillion bill signed into law last
month.
Will we see a great amount of small businesses go under in the coming weeks, even with this aid package? How much are small businesses really suffering?
3 comments:
I believe small businesses are taking some of the biggest hits from this economic slow down due to the virus. They don't have the savings that would be able to keep them afloat during this time of uncertainty. Even with this aid package, I think many smaller businesses will not be able to recover. Those who do make it out of this economic dip, may still face a slow recovery. Overall, even with aid I think we are going to see a decrease in the number of our small businesses around the country.
This pandemic is crippling small businesses in numerous ways. Most small business do not have the savings to survive for months without complete revenue. This will cause many of them to be put out of business and also will probably prevent them from coming back for a while. In some towns where it has hit harder may be completely empty because they rely on the small business that keep the town going. This aid package is crucial and is a huge one, but it may still not be big enough with the far reaching effects of covid-19.
I knew from the beginning that we would need another round of stimulus before this pandemic was over. I estimate that many small businesses are going to fail during this time and unless the Government can pull them out of it, there will be no recovery. Even once the US opens back up, people are not going to be willing to spend their money free for quite awhile, making this scenario even worse then it looks on paper.
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