The ongoing pandemic has affected every corner of the earth. The economy is facing a disaster. Every business is facing challenges related to the demand, production, transportation, and sales. The big companies are utilizing their huge resources to deal with it and surviving this pandemic.
But with limited resources and a small market, small scale businesses are facing an existential crisis. These small scale businesses are cutting their staff, cutting salaries, selling their assets to deal with this huge crisis. It is obvious to mention that these businesses need help assistance from the government; otherwise, they will have to shut their shutter. The first wave of U.S aid couldn’t reach to these small business levels.
Lawmakers are having a deep discussion over a new round of stimulus package which can reach up to the small business owners. According to a survey done by the National Federation of Independent Business, most firms have spent the entire money they had got from the $600 billion Paycheck Protection Program.
It has also come out that about 23% will close their business in the next 6 months if the situation changes soon. These people are becoming debt defaulters rapidly to about 2.7% of small businesses. He is expecting a rise of up to 5% to 6%. During the great recession of 2009, it had reached to about 6.35%.
At that time the U.S govt had given a $1 trillion stimulus which is about one-third of the stimulus already given till yet. Businesses of every state are suffering the same. People are now preparing to shut down while putting their best effort to not bring that situation. Around 44% of members surveyed recently said they have only money to operate for three months.