Small Businesses Will, Get Help Paying Workers if They Can Wait - Article Analysis Essay

Introduction

Emily Flitter's Article, "Small Businesses Will, Get Help Paying Workers if they can wait," examines the effect of coronavirus on small businesses during this sudden financial crisis. Flitter encourages small business workers to be patient and not to shut down their businesses or lay down their workers. Flitter explains how small businesses will benefit from the stimulus package, which the government is planning to grant them and may not even have to repay the loan.

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The government has offered a stimulus package of $2 trillion, and small businesses will benefit from more than $370 billion. Enterprises will not have to reimburse sums invested in recruiting employees, wages, rents, or utilities. Banks' lending the funds will be reimbursed by the Treasury Department, which is raising $377 billion to finance the project (Flitter). The bills will enable these businesses to access the stimulus loans from banks, and the loans will be backed up by small business administration to pay for basics expenses. Independent of stimulus, regulators have encouraged the banks and credit unions to start making small loans to small businesses and individuals. The advantage of this loan is that business owners will not have to use guarantee and their assets as collateral. There are no deposits, and the interest rate is reduced to 4% (Flitter).

However, there are some restrictions and eligibility to get loans. It requires applicants to deal directly with the small agency for the loan. One criterion for qualification is that one should not have laid off the employees so that they be exempted from paying a small amount of the loans. Loans are also limited to$10 million, and businesses with 500 employees or fewer Businesses will have to use the money within two weeks to avoid repaying it. They also can't pay any employee more than $10,000 in those two months if they want that amount to be exempted (Flitter).

Flitter argues that there have been several setbacks, as reported by some employers of small businesses. The waiting period is too much since the bill is waiting to be signed in the next two weeks. These delays could mean the small business margin, like restaurants, may not survive in that period. Most of the small business owners have sacrificed their savings to keep loyal employees since they appreciate their efforts in their business. Those who filled the application form have to wait for 3weeks for their loans to be processed. Some companies are not sure if the banks they rely upon will participate as an agency. Social distancing has also made it hard for lenders to workarounds hence slowing the process to apply.

In my opinion, small companies should be patient when applying for loans. This would alleviate the pressure and financial crisis on low-wage employees, allowing them to maintain their everyday lives. This would also enable companies not to shut down and continue to run. .Besides, the world would be able to manage and reduce the availability of products and services deficit. This would at least balance the economy through this pandemic. I find that banks should be less lenient with small companies and reduce so many restrictions for them to get loans. They should also increase the loan limit during these difficult times.

Work Cited

Flitter, Emily. "Small Businesses Will Get Help Paying Workers If They Can Wait." Nytimes.Com, 2020, https://www.nytimes.com/2020/03/26/business/coronavirus-stimulus-small-business.html. Accessed 1 Apr 2020.