COVID and Small Business: What To Expect From Congress in 2021

COVID and Small Business: What To Expect From Congress in 2021
Categorized as CARES Act, COVID-19 Relief Series Tagged , ,

We have a new Congress and a new President and his administration. What will that mean for your small business when it comes to help, assistance, and guidance from the government? Congress has held sessions with experts. The President is making this a priority in the face of this pandemic. In an address in January, President Biden said, “It’s not hard to see that we’re in the middle of a once-in-several-generations economic crisis with a once-in-several-generations public health crisis. The crises of deep human suffering are in plain sight.”

Let’s see what they have in store for us.

Update On Federal COVID Economic Plans

In order to get an idea of what our government is planning for small business assistance during this pandemic economy, let’s take a look at some things they’re planning and talking about. Here’s the latest from this new administration and Congress:

  • In early February, a panel of experts shared their ideas with a House committee put together to help design an economic plan that helps small businesses.
  • Janet Yellen, the new Treasury Secretary, has emphasized the importance of our economy to help small businesses through the pandemic. During her confirmation testimony, she said, “We will do everything we possibly can to get that money out to struggling businesses effectively. When businesses fail that have been the backbones of their communities, that’s permanent job loss for workers and a tragedy for the communities.” (source)
  • Congress continues to work on the next round of stimulus checks, which could help consumers spend a little more money with local, small businesses.
  • The House has passed a COVID-19 relief authorization bill. Now, we wait to see what will be included in the final numbers. (source) This bill may include an increase in the federal minimum wage as well as extended unemployment benefits. It is also said to include roughly $440 million specifically for small business relief.
  • The President is also looking to “create a $15 billion grant program to help more than a million of the hardest-hit businesses, as well as a plan to leverage $35 billion in government assistance into $175 billion in small business lending and investment.” (source)

Get Proactive With Your Business

Small businesses have felt the brunt of this pandemic economy, accounting for over 52% of jobs lost (ADP). With small businesses totaling 47% of all jobs (Census), they have lost more than their share. Even with the Paycheck Protection Program and other aspects of the CARES Act, small businesses are struggling. They’re worried that customers may not return, having found alternatives online.

We hope the actions Congress and the President are taking today will lead to real help for you and your small business. We can help you as they make plans. Contact us at ASCEND Business Advisory now to schedule a complimentary consultation to review your business’s options during this pandemic.