Small businesses across America are have started collapsing at the quickest rate since the onset of COVID-related lockdowns, in spite of the federal stimulus programs designed to preserve businesses.
Per Small Business Roundtable, 22 percent, or nearly a quarter, of all small- to medium-sized businesses across the United States ended up closed by the end of February, in contrast with 23 percent last May.
However, the businesses that have closed in 2021 may not have sufficient capital for reopening, as a result of the recent expiration of various programs, including the Paycheck Protection Program (PPP).
Last week, Co-Executive Director, Rhett Buttle joined the Pandemic Response Accountability Committee for the stakeholder listening forum "Pandemic Response: Perspectives from Small Business Borrowers."
— Small Business Roundtable (@SmBizRoundtable) February 25, 2021
Moreover, experts have also remarked that recently increasing the national has not helped American businesses.
Hans Netten, who serves as a senior lecturer at Hague University, has commented that “a considerable part” of the various loans utilized by the American government will eventually be paid back to the Chinese government and the Chinese banking system, based on the varied political choices made “by the same people who run America no.”
Netter also added that the “American growth model” that revolves around merely stacking one loan on top of another loan “is long overdue.”
Nonetheless, the Biden administration insists that GDP growth will increase back upwards to 10 percent during the second quarter of 2021, which contrasts with the 18 percent increase in national debt from last year.