Governments’ Economic Approach Towards Combating Coronavirus.
The coronavirus made the whole world come to a standstill as various sectors such as agriculture and economic enter into the danger zone. Various governments are trying to ease peoples’ lives during this crisis by adjusting economic aspects.
Some countries’ governments are reducing tax rates, interest rates, and tariffs so that small scale businesses might not fall. Others take the initiative of extending loan repayment periods as others increase the credit limit of personal consumers.
Various countries such as the US, are giving relief funds to its citizens to help them during these challenging times.
The United States Approach Towards Fighting This Crisis.
The US has the most cases of coronavirus on the world’s record. Its stock markets dropped over the past couple of weeks. Businesses are not doing well as millions of Americans are on the verge of losing their jobs.
Many more millions of Americans filed jobless claims complaining the take for the US government in controlling the situation. President Donald Trump signed a 2 trillion USD corona relief into law. The relief was to cut across unemployment benefits for Americans who were out of work because of the coronavirus.
The payment was to include tip workers, gig and self-employed workers, workers in different states and those in social assistance programs. However, these relief funds have a mandatory criterion and failure in fulfilling it may make one miss out on the funds.
The US asked financial institutions to aid in allocating 350 billion USD in loans to small enterprises as part of the relief funds. These small businesses include those such as salons, barbershops, and restaurants.
Nancy Pelosi talked with leaders of the treasury department and SBA to make sure small businesses are not left out of the relief funds.
Tech Companies Involve Themselves In Helping The United States Fight The Coronavirus.
The Fintech firms have been trying to get involved in the relief plan of the US. Eventually, they got the recognition of participating in the important relief program by the country.
PayPal and Intuit QuickBooks got approval from SBA to participate in Paycheck Protection Program. These government loans are to aid small enterprises to thrive in this economic dip.
The economic decline is a result of the coronavirus which forced major businesses to shut down and putting small businesses at the risk of being extinct.
Dan Schulman, the CEO of PayPal, says, “this is a race to save jobs today and for the future. We are eager to deploy our capital and experts to do our part in aiding small enterprises to thrive this trying time.”
Besides, Intuit QuickBooks says it will develop staff data that small enterprises will need to deliver to creditors for approval.
Tech firms such as Amazon are alternatives for small enterprises to get starting money or capital. PayPal delivers entry to over 895000 loans and money advances. Besides, it delivers entry to over 14.5 billion USD in backing to over 300000 small enterprises.
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