The COVID-19 pandemic became a major factor which affected numerous spheres and especially businesses. In order to address the negative effects of the COVID-19 pandemic, governments worldwide, including in the United States, designed special initiatives to help companies. The support offered by the U.S. government in the form of economic stimulus was helpful for thousands of companies, and the actions of the authorities were consistent with the principles of an appropriate exercise of power.
Ways in Which the Government Assisted Businesses
The primary measure taken by the U.S government during the pandemic in response to the impact on businesses was the introduction of the Coronavirus Aid, Relief, and Economic Security Act. The initiative provided business assistance to smaller enterprises which gained an opportunity to apply for an emergency advance of up to $10,000 (“United States”). Moreover, the government also offered the Main Street Lending Program, which was intended to support medium-sized businesses in the country by providing them with access to loans.
Is There Enough Support for Business Right Now?
Despite the fact that the COVID-19 pandemic is no longer the most pressing issue for businesses in the country, the government continues to offer relevant support initiatives which are sufficient. For instance, the $1.9 trillion aid package introduced in 2021 is still being distributed among businesses which had to reorganize due to the pandemic (“57 Grants”). The package implies offering a variety of assistance measures to businesses, including tax credits, loans, and grants which can enable them to address their problems effectively.
Is the Government Exercising its Power Appropriately?
The COVID-19 pandemic became a significant and unexpected disruptor for the U.S. economy, and the government had to act quickly to solve the arising problems in the economy. Although the situation was difficult, the government exercised its power appropriately and did not engage in the abuse of the constitution and the established laws (Reed and Schulteis 1). Such evidence demonstrates that the U.S. government adopted the correct approach to responding to the pandemic.
The COVID-19 pandemic forced the United States government to take measures to support businesses. There were many initiatives offered by the government, yet the most notable of them was the Coronavirus Aid, Relief, and Economic Security Act. The support provided by the government played a major role in the economic recovery of the country and enabled businesses to avoid bankruptcies and keep workers employed.
57 Grants, Loans and Programs to Benefit Your Small Business. U.S. Chamber of Commerce. 2022. Web.
Reed, Katie P. and Schulteis, Monica P. “President Trump Signs into Law the Coronavirus Aid, Relief, and Economic Security (CARES) Act.” The National Law Review, vol. 10, no. 89, 2021, pp. 1–9.