As coronavirus-induced panic is spreading rapidly across the country, small business owners are already feeling the effects of slowed consumer spending. To combat economic slowdowns and to keep businesses alive, President Trump announced Wednesday, March 11, that companies that are affected by the coronavirus pandemic will be supported by a $50 billion increase in low-interest loans guaranteed by the Small Business Administration. This is double the amount of lending power the government agency had in the 2019 fiscal year.
In addition to this support, Trump is giving small businesses the ability to defer paying their federal income taxes for three months. This means another $200 billion into the U.S. economy.
President of lending platform Biz2Credit Rohit Arora told CNBC that though the support is undoubtedly helpful considering a recent increase in loan demands, it will still be a few weeks before small businesses see the effects.
CNBC suggests that small businesses continue communicating with their staff, invest in work-from-home technology, and create a disaster-preparedness policy to compensate for these issues.
By Cara Nixon