Small businesses have been hit the hardest by the COVID-19 crisis.
Owners of small businesses have been facing numerous challenges because of the COVID-19 pandemic. Many have closed their doors - some temporarily, some permanently - and many have had to lay off employees. Kathy Keller, Project Coordinator of the Small Business Development Center at Rhodes State College told us that most small businesses have the resources to survive for 60 days without customers. The federal government created the Cares Act to help them with the Economic Injury Disaster Loan and the Paycheck Protection Program. The first $349 billion allocated to the Paycheck Protection Program ran out in just 13 days. There was $310 billion in the second round of funding.
So what can businesses do to stay viable? Keller says those with a business plan are 30% more likely to succeed than those without one. If you already have a business plan, she recommends taking a look at it and revising it for current conditions. She says you should also revise your cash flow income to reflect the restrictions, and negotiate your debt repayment. If you need assistance, the SBDC is available to help. Most of all, Keller says that shopping locally will help our businesses.