“However, if a business has previously been managed badly, going further in debt to ultimately no avail will not help anyone. “For those businesses who are smart, attentive and well-managed operators, they deserve the assistance,” she says. Malody describes some difficulties of loan programs. They suggest a more “significant and sustained” small business loan program which guarantees loans to small businesses and gives them greater flexibility. However, in a letter to Congress, Schultz and other corporate leaders have called for a different, more effective kind of loan, building on the principles of the PPP. The government has already committed a historic $700 billion to support small businesses, mainly distributed as PPP loans and grants, The Washington Post reported in May. “Although right now the pandemic has decimated small business, especially in the hospitality sector, many of us will fight through and find ways to survive.” Funding measures “I think it is a bit premature to predict that every small business in the US will perish,” he says. “In my mind, the true tragedy here is that small businesses represent the spirit and intent of America – the entrepreneurial, creative energy that drives the heart and soul of our nation.”Ĭonsultant Joseph Schumaker FCSI, president and CEO of FoodSpace, based in Silicon Valley, California, and Boise, Idaho, is more optimistic. “Even more sad is the fact that many of these business owners will have to find work elsewhere, possibly in areas in which they were not trained, nor feel passion,” says Malody. The consequences are not only financial, but also cultural. Small businesses, already operating on tight profit and loss dynamics, rarely have cashflow back up to sustain themselves through something like this.” “It is difficult to fathom the length of time it will take to dig ourselves out of this. “I fear that too many people in the US do not fully grasp the devastating impact the shutdown resulting from Covid-19 has caused,” says consultant Karen Malody FCSI, principal of Culinary Options in Portland, Oregon. Here, consultants discuss the current situation and the future of small business in America. In a letter to Congress, Schultz and other corporate leaders suggested a small business loan program would be more effective and sustained than the current Paycheck Protection Program (PPP). ![]() The situation for small businesses in America is grim, Schultz claims, and threatens the future growth of the whole US economy. ![]() ![]() Schultz told CNBC that Starbucks might not have survived the pandemic had it occurred in 1987, when the chain had only 11 stores. With America’s small businesses facing financial and cultural challenges, corporate leaders have called for more government aid, reports Juliet Martinįormer Starbucks CEO Howard Schultz has called on the US government to take more measures to support small business in the face of dramatic rates of permanent closure during the Covid-19 crisis.
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