April 26, 2021
5 minutes of reading
Comments expressed by Businessmen the contributors are their own.
There’s no need to say that Covid-19 have a serious impact on businesses by 2020, especially Small business and starting a business. Much businessmen had to shelve their dreams or get completely buried in a towel. What’s more, businesses that have been running smoothly for many years suddenly have almost no cash flow. The party in Washington DC delayed the first round of Covid-19 economic stimulus, forcing thousands of these businesses to close in the process.
Since then, the government has increased its commitment to helping small businesses and individuals struggling to make ends meet during the pandemic. Under the Trump administration, CARES Act appropriated $ 302 billion to support small businesses and create Salary protection program (PPP). PPP opens a window for Small Business Owners are influenced by Covid-19 to apply for loans from the government to help pay employees salaries and similar business expenses. After that, PPP loans were expanded to include freelancers, contractors and small businesses that may not yet meet the requirements for the first round of loans.
In March 2021, the newly formed National Assembly, in conjunction with the Biden Government, introduced and approved American rescue plan. This new law has pumped 1.9 trillion dollars in so economic, strengthening Covid-19’s preventive measures and health infrastructure, and providing financial support to individuals and small businesses. In total, six bills have been passed by the National Assembly, worth about $ 5.6 trillion.
How Covid-19 has influenced startup culture
Thanks in large part to the Payment Protection Program, startups have access to low-interest (and forgiving) loans to help them maintain and grow their businesses. However, even under extended PPP criteria, businesses need to be active as of February 15, 2020 or earlier. As a result, startups starting during the pandemic have no access to this cash.
Luckily, individual direct payments have also helped a number of new startups. So far, anyone earning less than $ 75,000 per year should have received $ 3,200 in direct stimulus payments. While this may not be enough to sustain a startup in the long run, it may be enough to keep a startup alive until it can bring in revenue. Moreover, unemployment The benefits have also been extended by the Covid-19 law, which ensures that unemployed people can at least pay their bills until they start a business.
Start-up scene in 2021
Pausing financial support aside, it is important to note that the new startup landscape has evolved in 2021. While Covid-19 has placed some industries such as tourism and hospitality on the brink of collapse. , it helped other industries to expand rapidly. For example, IT services, online education and many others have increased in the past year and a half.
The key to creating and building a startup in 2021 is analyzing the characteristics of our “new normal”. What business model flourishing? What’s not working anymore? By asking these questions, many entrepreneurs will find that traditional businesses are currently a difficult commodity to sell to angel investors or even traditional lenders. With social alienation and masks remaining, the workforce is transitioning to mass telecommunications. Meanwhile, businesses that have the ability to move their products and services into the virtual realm are doing so as quickly as possible. Still other businesses are adapting their business practices to strict public health and safety regulations.
Although it sounds too opportunistic, there’s probably never been a better time to enter the world of the business inspiration. As a result of the pandemic, many entrepreneurs have a better chance of entering the market that many competitors have closed for good. As a result, more hawk entrepreneurs can rush in to take advantage of market gaps that are rapidly being filled by larger firms.
Can entrepreneurs expect more aid in the near future?
According to this article, it is still too early to say whether there will be more Covid-19 aid by 2021. In USA and in many other developed countries, vaccine implementation is cutting the number of cases by a very large extent. By the end of 2021, the vast majority of Americans are expected to be vaccinated. Although this would be a major step forward in stopping the spread of Covid-19, it will not undo the economic damage it has caused.
This is why many figures in Washington DC are calling for more aid. Senators Bernie Sanders and Elizabeth Warren, among others, have called on President Biden to provide periodic direct payments and small business support until the crisis is over. Other members of Congress have also called for more investment in infrastructure, health care, and state-sponsored programs for small businesses and startups.
However, the bipartisan divide did not disappear overnight when President Biden took office. In fact, though the overwhelming popularity of direct payments and small business supportMany in the National Assembly believe that the government should wait and see how the current law affects the economy and national deficit. Others, however, especially Democrats, don’t think individuals with lower incomes and small business owners have time to see how things go. Consequently, the future of Covid-19 aid will be a matter of great controversy.
While it is uncertain about stimulating Covid-19 further, it is quite possible to revive new and existing startups by 2021. Entrepreneurs who are in short supply can use their own aid. government to bring new ideas to troubled fields, helping to boost the economy in many ways. Furthermore, the ever-changing nature of the pandemic requires that new businesses continually fill new gaps in the market. In the meantime, we’ll just have to wait and see how much stimulus of Covid-19 will reach the entrepreneurs who need it the most (if any).