What Small Businesses Need to Know About the Coronavirus Relief Bill

What started with Wuhan in China has the world under its grip now. Coronavirus (COVID- 19) is everywhere. It has torpedoed our world in every conceivable way. The nature of the virus mandates social distancing as the only way to control the spread. With more and more states in the US adopting lockdown as a major strategy to contain the virus, only essential commodities are being allowed to operate. This has impacted the economies world over like never before with small businesses bearing the major brunt of the adverse economic impact. 

There are about 30 million small businesses in the US that are a critical part of the robust economy of the country. Such businesses mainly operate on the revenue from their regular customers to sustain themselves. Most of these businesses are already seeing a drastic drop in their income due to the various restrictions imposed on the movements of goods and services. 

How are small businesses getting affected by Coronavirus 

• Administrative Restrictions: The lockdown implemented by a few states coupled with social distancing being practiced by the people has created a situation where most small businesses are not accessible to their customers. The fear of exposure to the virus in crowded places has led to people severely curtailing their public interaction including not patronizing the shops that they so love. 

• Compromised financial capacity- The Coronavirus pandemic has led to a compromised financial capacity where the small businesses are finding it difficult to maintain inventory, manage payrolls and respond to supply and demand fluctuation in the market. Consequently, they are finding it increasingly difficult to sustain themselves.  

• Reduced workforce: With social distancing being the norm, small businesses have either laid off their staff or have given them work from home if possible. In both cases, optimal service efficiency and efficacy are greatly affected. 

• Shortage in the supply chain: The fear of the spread of Coronavirus has led to drastic measures being taken by the government that has impacted the supply chain that the small businesses depend on for their smooth operations in the most unfavorable ways. They may not be able to secure an adequate buffer for their supplies as the entire supply chain gets affected due to the Coronavirus outbreak.