Small businesses are the backbone of any economy. They create employment opportunities, generate revenue, and are often the breeding ground for innovation and creativity. However, small businesses are also the most vulnerable during times of crisis. The COVID-19 pandemic has struck a severe blow to such businesses worldwide. Governments have been quick to respond to this crisis by introducing relief programs to help small businesses survive and thrive. In this article, we explore five ways small businesses can benefit from government relief programs.
1. Access to Low-Interest Loans
One of the most popular relief measures introduced by governments worldwide is providing small businesses access to low-interest loans. In the United States, the Small Business Administration (SBA) launched the Paycheck Protection Program (PPP) to help small businesses affected by the pandemic. Through PPP, small businesses can apply for loans of up to $10 million to cover expenses such as rent, utilities, and payroll. The loans have a maximum interest rate of 1%, making them an attractive option for small businesses struggling to survive.
2. Grants and Financial Assistance
Governments are also providing grants and financial assistance to small businesses to help them cope with the pandemic’s impact. For instance, the Canadian government launched the Canada Emergency Business Account (CEBA), which provides interest-free loans of up to $40,000 to small businesses. If businesses repay 75% of the loan by the end of 2022, they can retain the remaining 25% as non-repayable. The CEBA is a lifeline for small businesses struggling to keep afloat during these uncertain times.
3. Tax Relief and Rebates
Small businesses can also benefit from tax relief and rebates introduced by governments. For instance, the Australian government announced a series of tax measures to support businesses during the pandemic. These measures include immediately writing off the full value of any eligible asset purchased for less than $150,000, providing a cashflow boost of up to $100,000 for eligible businesses, and offering a 50% wage subsidy for eligible small businesses and not-for-profits.
4. Business Counseling and Mentoring
Governments worldwide are also providing small businesses with counseling and mentoring services to help them navigate the pandemic’s impact. In the United Kingdom, the government launched the Growth Hub Network, which provides small businesses with free one-to-one advice, mentoring, and support services. The network comprises more than 200 advisors and offers services such as legal advice, marketing support, and business planning.
5. Access to Expertise and Training
Another way small businesses can benefit from government relief programs is by accessing expertise and training. In the United States, the SBA launched the Small Business Development Center (SBDC) and SCORE programs to help small businesses access expertise on topics such as finance, marketing, and operations. SBDC and SCORE offer webinars, workshops, and training sessions to help small businesses build skills and knowledge to succeed.
Conclusion
Small businesses are critical to any economy’s health and well-being, but they are also the most vulnerable during crises such as the COVID-19 pandemic. Governments worldwide have responded to this crisis by introducing relief programs to support small businesses. Small businesses can benefit from these relief programs in several ways, including access to low-interest loans, financial assistance, tax relief and rebates, counseling and mentoring, and expertise and training. Small businesses should take advantage of these relief programs to survive and thrive during and after the pandemic.
