(Newswire.net — July 1, 2020) –This global viral pandemic has claimed the lives of hundreds of thousands of people worldwide, changed our day-to-day behavior (maybe forever), and has crippled our economy in ways that we might not be able to fully understand for years to come.
Small business owners in particular have been hit the hardest.
According to data released by the US Small Business Administration, one in four small businesses have already shut their doors (at least temporarily) as a direct response to the coronavirus. This means we’re looking at more than half of all small businesses shuttered – for at least the meantime – in the entirety of the United States. While states continue to lift restrictions we have to get used to a new economic reality.
As the government has been working in a bipartisan nature to create a bit of economic stimulus – through things like the Paycheck Protection Program (PPP) and the broader scope of the CARES Act – we still have no real plan for fully reopening the nation in the way we used to know it. In the mean time we need to start working on getting our record-breaking economy back on track, and moving forward in the future better prepared for these kinds of pandemic situations.
Our New Economic Reality
As highlighted above, when you’re looking at 54% of all small businesses that have recently halted all or a majority of their economic activity. We need to start focusing on re-opening America. There has been a major affect on daily business life. There has never been a greater need for capital to help get out of catastrophic economic environment the likes of which we have never seen before.
88% of all small business owners report that they are nervous about the impact of the coronavirus outbreak and how it will affect their business for years to come. Those in the service industry, those in the Northeast area of our nation, and businesses with more than 20 employees are statistically the most nervous and fearful about the impact – but small business owners around the country are understandably unsure about how things are going to go moving forward.
Service businesses have been devastated as have business operations with groups of more than 10 to 20 people working in close quarters for hours and hours each day. Remote working opportunities have allowed a lot of people to keep their jobs, but with record unemployment and furloughs being implemented at a breakneck pace our new economic reality is anything but certain and anything but secure.
Information released by the US Chamber of Commerce reports that most small business owners would prefer direct cash payments going out directly to every American citizen, followed closely by small business only access to disaster loans (forgive a bull loans in most circumstances) set up through the SBA.
Small business owners and entrepreneurs are also looking for government to at least temporarily cancel payroll taxes, an idea that is getting some traction in the House and the Senate but may not be close to coming to fruition just yet.
How We Pave a Path Forward
As for me, Nathan Abadi – founder and president of Excel Capital Management, I continue to have a very bright outlook for small business owners in the United States and health of our national economy.
Working day after day with small business owners directly to help them get their hands on the financing and capital they need to get through the coronavirus pandemic – and not just to make ends meet, but to grow and to succeed – it’s been a very eye-opening education to see how resilient, how strong, and how selfless our small business community really is.
As a nation we have a history of self-reliance, innovation and ingenuity, and a resiliency that is unmatched and is unparalleled.
In times like this, when we all are threatened and attacked by an invisible enemy that does not care about who we are, what we look like, or where we come from we have a unique ability as Americans to come together, to push back as one, and to overcome.
I’m seeing – day after day – small business owners and entrepreneurs push forward, capitalizing on new opportunities and new technology, and leveraging smart financing solutions to come up with innovative and ingenious approaches to business that are going to change our world for the better going forward.
It’s my belief that our economy is going to be right back on track inside of six months (and maybe even faster than that), especially once we begin to strategically – and safely – reopened our nation once again.
Sure, the coronavirus is going to have long-lasting impacts on number of businesses and a number of industries – some of which are going to take longer to recover than others. The coronavirus is also going to change the way that we look at much of our day-to-day behavior, with changes implemented during the pandemic that are sure to stick around for at least a little while (if not permanently).
But small business is the lifeblood of this nation, the backbone of our economy. That isn’t going to change today, tomorrow, or 100 years into the future. Our small business owners are strong, smart, and strategic and we will bounce back.