Since the top of the year the topic of conversation has been about the unexpected pandemic. With the coronavirus said to have spread from China, as recent, the U.S has confirmed over 1 million cases. The spread of this deadly disease as many know has forced the president to call for a state of emergency which has led many states to completely lock down cities to reduce the number of infections. The issue with this is, many small business that were not considered essential had to close their doors, but the question many are asking is for how long? Although The SBA offered low interest loans to help small businesses as well as that advancing up to $25 thousand to some businesses to stay afloat. Unfortunately, not everyone was able to get a piece of the pie; either they were not approved or registered too late. With only 13 days of the government offering $349 billion in loans for small business, the money ran out. Big companies like Los Angeles Lakers and Shack Shake took advantage of theese loan while many questioned why.
The government also offered the payment protection program for companies with less than 500 employees but reports say 90 percent of minority owned businesses were not qualified for the program. While mom and pops stores were unable to take advantage of any of the funds, over 200 publicly traded companies received over $750 million in small business loans. This is what they mean when they say the rich get rich and the poor gets poor. Small business that are serving the community are forced to temporarily close their business which impacts revenue which can ultimately lead to downsizing.
As many states remain closed some establishments are reopening under limitations. businesses such as restaurants, fitness centers and hair salons are still restricted from opening. If this prolongs, many businesses will not survive this crisis. I believe many small business owners will be forced to go out of business or file bankruptcy which will leave opportunity for those in power, or who have funds to buy the businesses or reap the benefits of their absents.
I find this very frustrating as a small business owner myself. I am unable to apply for loans because there are no more funds and the Paycheck Protection Loan applications had an overwhelming number of businesses apply so I am subject to wait to see if I was approved. Meanwhile, my business continues to lose money daily.
There has to be laws implemented that will govern small businesses especially business of color. Hence, but this too explains how systemic racism still exist in the land of the free.