Wednesday, February 10, 2021

9 Million Small Businesses Gone By The End of 2021

The Federal Reserve recently reported that 9 million small businesses will be gone by the end of the 2021 without more federal help.   This is roughly 30% of the 30 million small businesses in the US.  The two Payroll Protection Programs implemented in the last year are just not enough money to keep these businesses going since many have been on lock down for a year and or experienced far less business than normal.  Small businesses like many people live paycheck to paycheck.  Without revenues coming in the door every week, there is no way to pay the bills.  This is especially true because Small Businesses often do not have access to bank credit and certainly not enough credit to get them through a year of little or no revenues.

PPP Loans basically covered two months of expenses each time the program has been implemented in the last year.  It was too little too late. So specific to the formulas, Small Businesses may have gotten enough money to get them through four - five months of little or no revenues.  The pandemic is now a year old.  The Science keeps changing.  Now the CDC says, it is fine for teachers to go back to school, with or without Covid vaccinations.  The dislocation of closing schools on the economy has been huge.  The American Medical Association now says it is fine for doctors to prescribe the cheap malaria pill cocktail for those that get Covid that other countries have been using for months to save lives.  How convenient that this information is now coming out just a few weeks after the election.  

Small businesses have been destroyed because of very bad government policies that allowed big businesses to stay open while Small Businesses were required to close.  It is very clear that if Small Businesses have any chance of surviving, the federal government will have to go way beyond the PPP Loans that are just not enough money for Small Businesses to get to the end of 2021.  And, the states must open up for business Now.   People most at risk are getting vaccinated.   We can wear masks, wash our hands and social distance; but one thing is sure, Small Businesses cannot wait for the pandemic to be completely over because they will be gone.  

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