7.5 million small businesses are at risk of closing permanently in the wake of the coronavirus pandemic, according to a recent survey. Small businesses employ nearly half of the U.S. workforce and are especially vulnerable to economic downturns as they lack the capital of larger companies.
In the most recent attempt to minimize the economic damage, Congress, on April 23, passed a bill that will provide $310 billion in aid to small businesses struggling to survive during the COVID-19 crisis. The latest legislation brings the total government stimulus spending aimed at bolstering the economy in the wake of the crisis to an unprecedented $2.5 trillion.
In light of the historic government relief spending, 24/7 Wall St. compiled a list of the types of small businesses that need the most help during the coronavirus crisis. Our list includes the self-employed and sole-proprietors (who work for themselves or through a larger company like Airbnb) to businesses with several hundreds employees in a range of industries.
Part of the government assistance program for small business aims to assist companies with fewer than 500 employees with payroll costs. With this help, companies that are struggling with reduced revenue will be less likely to have to lay off workers. So far, unemployment claims in the last five weeks have wiped out all of the employment gains of the last 10 years. Here is a look at every state’s unemployment claims since COVID-19 shut the economy down.
While no sector of the economy has been unaffected by the efforts to contain the spread of the coronavirus, businesses in certain industries are especially exposed. These include food and beverage services, hospitality, and travel. Here is a full list of the U.S. industries being devastated by the coronavirus.