The Effect of Covid-19 on Small and Medium Business
Small and medium businesses are maxing out the help they have received, and they are in dire need of more relief, and quickly, to keep themselves and their businesses afloat.
That just about sums up the announcements made by the CEO of Goldman Sachs, David Solomon, in an interview on CNBC.
David Solomon shared that almost all of the business establishments that they have surveyed, as part of their Goldman Sachs Small Business Program, are already at their limit and have already maxed out the benefits they have received in early 2020 as part of Congress’ first Coronavirus disease-2019 (COVID-19) relief package.
The ongoing COVID-19 global pandemic, however, has already imposed a heavy financial burden on businesses around the country.
The aforementioned benefit businesses were able to receive the Paycheck Protection Program or PPP.
Many business entities who were able to avail this relief have used this to keep their businesses running amidst the pandemic’s ill effects on the country’s overall economy.
However, as the pandemic continued to drag on during the following months, the situation has become harder for different businesses to continue operating.
Thus, they had to furlough employees and minimize operations to avoid the scenario of closing up their shops for good.
Goldman Sachs’ Solomon acknowledged the same in CNBC interview. The important role small businesses play in the country’s economy.
They add that they need to receive more help stating, “They need capital, liquidity to bridge them. They can see the light at the end of the tunnel.”
Warren Buffet, CEO of Berkshire Hathaway, also shared his two cents resonating deeply with the message shared by Solomon.
They shared that many small-scale business establishments “have become collateral damage in a war that our country needed to fight, but we in effect, voluntarily had an induced shut down of parts of the economy and hit many types of small business very, very hard.”
Buffet, who has worked extensively with Goldman Sachs for decades now, have hoped that authorities will “Extend the PPP plan on a large scale.”
The statements of these two prominent figures in the financial world have come right after Congress passed a new COVID-19 relief package aimed at providing Americans with a fresh round of relief and support coming from the federal government.
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Don’t forget to read the list of Covid-19 Financial Assistance Programs.