The adverse effects of the COVID-19 Pandemic are still a threat to the global economy and public health. Though vaccination drives have begun in most parts of the world, the economy is yet to bounce back fully. The worst-hit has been small businesses that were forced to shut down on the outbreak of the Pandemic.
Fred Glynn – The need for innovative policies for small business financial aid
Fred Glynn is a councilman and a Past President of the Hamilton County Council. He is an exemplary leader in governance and business. He has 15 years of valuable experience in the fields of sales, insurance, and mortgage. He has built two lucrative companies from scratch and is a firm supporter of fiscal conservatism.
Small businesses are struggling in the post-pandemic era
He goes on to explain that the Pandemic has been a bane to small business owners. They are struggling daily to make ends meet. The effects of the Pandemic have been devastating for them. They still encounter the challenges of finding customers and supporting their employees. For the above reasons, both the Federal and the local governments of the USA have joined hands together to make sure that small business owners get the financial support they need in these challenging times.
The Stabilization Fund of Hamilton County for small business support
He cites the example of Hamilton County in Indiana, where he says that the local government, via the efforts of the Council, has created a unique Stabilization Fund to support small businesses in the region with a nominal financial grant of $25,000 for helping their companies to at least attain the break-even point.
He adds that the USA Small Business Administration is now extending loans to small businesses that are eligible for the same on the national levels. It is also offering relief at this time from payments if the business is a present lendee of SBA.
2 Factors to consider for small business owners
The following are specific factors that small business owners should consider when it comes to getting the financial aid they need for supporting their companies-
- As a small business owner, you should first ascertain what your needs are first.
- Check whether you need financial help when it comes to supporting your present employees.
Current schemes for financial aid targeted at small businesses
Following are some small business financial aid schemes for a small business in the USA-
- The SBA currently has a special feature called the Paycheck Protection Program that helps small businesses keep their employees on the payroll.
- Again, the Economic Injury Disaster Loan acts as a lifeline to small business owners and non-profit organizations that have lost their customers due to the COVID-19 Pandemic.
- Again, the SBA Debt Relief and the SBA Express Bridge Loans are for the present lendees of SBA.
As per Fred Glynn as a small business owner if you are considering the Economic Injury Disaster Loans (EIDL), the terms of payment cover a thirty-year maturity period with interest rates of $3.75 for small businesses. This loan should only be used for the business that could have been otherwise met if the Pandemic had not taken place. An eligible business should have less than 500 workers or even lesser employees to be considered for this loan.