How the Government Supports Small Business During the Coronavirus Pandemic

How the Government Supports Small Business During the Coronavirus Pandemic

The global economy is plunging into crisis. Coronavirus first paralyzed part of the production in China, then stopped hundreds of enterprises in Europe and Asia, followed by the turn of the United States.

Over 6.6 million Americans applied for unemployment benefits last week, nearly doubling the record high unemployment rate recorded a week earlier against the backdrop of the coronavirus pandemic.

A sudden disruption in the global economy will trigger a global recession in 2020, predicts S&P Global. According to S&P analysts, the annual growth of world GDP will not exceed 1-1.5%, the second quarter will be the hardest.

The mildest scenario is a repetition of the 2009 crisis, admits Tomash Fiala, CEO of Dragon Capital investment company.

According to the forecast of the International Labor Organization, due to the coronavirus pandemic, about 25 million people may be left without work.

The US Senate unanimously voted for a bill on emergency measures to support citizens and the economy in connection with the spread of coronavirus. About $ 2 trillion is allocated for these purposes. The document must be approved by the U.S. House of Representatives.

The bill provides:

  • payments of $ 1.2 thousand to US citizens with an income of up to $ 75 thousand per year, for children a payment of $ 500 is provided (the total amount will be $ 500 billion);
  • development of a small business support program of up to $ 367 billion;
  • financing of various sectors of the economy, support of cities and states for $ 500 billion;
  • $ 250 billion expanded unemployment insurance;
  • allocation of $ 46 billion to fight against coronavirus.

According to Treasury Secretary Stephen Mnuchin, such support will save the US economy for three months. US President Donald Trump promised to sign the document immediately after its approval by Congress.

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