Who closes businesses due to covid in the US?
Who closes businesses due to covid in the US? Many entrepreneurs who carry out their activities in the North American country have this doubt. In Hispanic Entrepreneurs We explain how this protocol works.
The effects of covid on trade
Economists point out that it is very difficult to count the number of companies that have closed due to the pandemic. Also, if said closure is temporary or permanent. The absence of data occurs because the official statistics are delayed.
However, the Harvard University project called The Economic Tracker indicated that there are 37,5% fewer small businesses in the United States. This compared to January 2020.
Many avoided the crisis after reinventing themselves by adapting to biosafety regulations and vaccination mandates. But it has been complicated by supply chain backlogs, inflation, labor shortages, among other problems.
With the avalanche of infections with the Omicron variant, things have become complicated again. Above all, because the wave appeared just at the time of December. This time the closures have been voluntary and the economic recovery will slow down.
Who closes businesses due to covid in the US?
Each state has its laws and this must be respected by all instances. So throughout the pandemic caused by covid, governors have issued mandates and recommendations according to their situation.
In most cities they have opted for the closure of schools, companies and institutions when infections have increased. In the first days of 2022, they have reestablished the mandate for the use of masks in the face of the onslaught of the delta and omicron variants. They have also taken other measures indicated by the Centers for Disease Control and Prevention.
According to Ohio State University professor Peter Shane the authority that regulates public health and safety is the governor. The decision belongs to the states and not to the federal government according to the American constitutional system.
For this reason, conflicts have arisen with the presidency that can issue guidelines. In short, it is the power of each entity to follow them or not. State and local authorities have the final word on their economies.
In this latest wave of infections, the order has not been necessary from these instances, the businesses themselves have decided to close. This because many of its employees contracted the virus and others as a precaution. They hope that with this measure they can avoid future longer closures.
The so-called “judiciary” they possess to govern health, welfare, and safety gives them the authority to force closure. It can force businesses that disagree, order people to stay home, and impose curfews. They even threaten arrest if the order is not followed. In the coronavirus crisis, the latter has not been necessary to “flatten” the contagion curve.
Help for small businesses affected by covid
The US government implemented a series of aid plans for companies and small businesses that were affected by the pandemic. It presents several options such as the payment protection program. It is a forgivable loan plan to be able to support workers.
The EIDL COVID Loan helps businesses that experienced revenue losses. It has low interest rates. As well as, the SVOG Grant Program for eligible businesses affected by the crisis.
There is also the restaurant revitalization program that awards funds to eligible establishments that work with food. The relief program of the SBA that is directed to the borrowers of the agency. However, some of these aids are suspended.
Related Notes: