For a few weeks in late March and early April, the entire global economy appeared to be grinding to a halt in the face of the coronavirus pandemic, and small business owners were rightly concerned the fallout might drive their companies out of existence.
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For a few weeks in late March and early April, the entire global economy appeared to be grinding to a halt in the face of the coronavirus pandemic, and small business owners were rightly concerned the fallout might drive their companies out of existence.
Then came the $2.2-trillion federal CARES Act, which offered a more stabilized environment and a sense of relief from the initial panic.
At the heart of that government stimulus program in the spring was the $525-billion Paycheck Protection Program, which provided forgivable loans to small and not so small businesses.
Nearly 18,000 organizations in Central Massachusetts applied for one of the PPP loans, including 350 firms who qualified for loans in excess of $1 million.
It is safe to say for most of those 18,000 businesses, this was the first time they ever took advantage of a government relief program. S
ometimes the government is here to help – and the PPP program, despite its imperfections, proved to be a difference maker for companies in need.
Nearly 10 months later, unemployment remains high and economic output is well below its pre-pandemic levels.
We have a much clearer picture of who is suffering most from the pandemic.
Countless businesses have closed, and small business revenue dropped 46% in Worcester County in 2020, according to the economic activity Opportunity Insights, run by a consortium including Harvard University in Cambridge and the Bill & Melinda Gates Foundation in Seattle.
Still, if your business has survived 2020, and with a light at the end of the tunnel in the form of a vaccine, business owners need to continue to pay attention to any additional lifelines thrown into the choppy waters.
At the end of December, Congress passed a $900-billion stimulus package with financial programs for businesses, and the Baker Administration has created a separate $668-million small business grant program in Massachusetts.
Both of these efforts – combined with many others, including an extended emergency relief application deadline from the U.S. Small Business Administration – can help businesses navigate the tough times between now and whenever the COVID-19 vaccines help society achieve herd immunity.
These new federal and state programs can offer immediate, needed relief to the industries most challenged by the pandemic, but many small businesses don’t have the bandwidth to understand the many ways they can help themselves through government relief.
Digging in and learning about the details of this new round of programs would be a good place to start.
Not only can they help your business survive the bumpy ride over the next several months, they can help position you for sustained success far into the future.
