Monday, June 27

White House highlights 5 benefits for Latino small businesses with stimulus package

White House highlights 5 benefits for Latino small businesses with stimulus package

More small businesses will have access to aid with the new stimulus package.

Spencer Platt / Getty Images

Most Latino businesses have fewer than 20 employees, but their efforts add up to 44 percent of Gross Domestic Product (START) generated by this type of business.

Establishments such as beauty shops, wineries, restaurants, gift shops and a long etcetera, also create two-thirds of new net jobs, in addition to providing opportunities for half of the workers in the United States, according to federal government data.

“Millions of small businesses operating in neighborhoods, especially small businesses owned by people of color [incluidos latinos], are struggling to make ends meet in the wake of the COVID-19 pandemic and the resulting economic crisis “, recognized the President’s Administration Joe Biden. “Without additional help from the government, these challenges could get worse in the coming months and our national vaccination program will be hampered.”

He added that the recently approved $ 1.9 billion US Rescue Plan offers immediate help to those small businesses, in addition to incentives to families with the $ 1,400 check and other support.

According to official data, at least 400,000 small businesses have closed, but millions are about to do so, although they can find some relief with the loans and investments of the package just approved by Congress.

A report from the Center for American Progress (CAP), “Latinos face disproportionate health and economic impacts from COVID-19” (“Latinos Face Disproportionatee Health and Economic Impacts From COVID-19”)Prior to the approval of the ARP, he pointed out that Latino communities suffer job losses in all sectors, but particularly in services, where small businesses are located.

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In addition to the economic impact, Latinos face a disproportionate impact on the pandemic, since the CAP report adds that members of these communities are 1.7 more likely to contract coronavirus; 4.9 times more likely to be hospitalized, and 2.8 times more likely to die from the disease.

The Biden Administration emphasizes that ARP programs, small businesses can rehire employees and keep them safe in their work space, but recognizes that there must be an orientation plan, a kind of “navigation path” that will be implemented for underserved entrepreneurs who do not they have lawyers or consultants.

The aid package will offer:

1. The assignment $ 15 billion in flexible grants.

2. Fund of $ 28.00 million for a new grant program for small restaurants and other affected food and beverage establishments.

3. The program of Paycheck Protection with an additional $ 7.25 billion that target small businesses and nonprofits that had been excluded.

4. Will be allocated $ 1.25 billion to support live theater operators, theater producers, operators of live performing arts organizations, operators of museums, movie theaters and talent representatives.

5. They will also be reversed $ 10 billion in state, local and tribal small business financing programs to help entrepreneurs innovate, create and maintain jobs.

President Biden prepares his new economic recovery plan that takes a boost with the recently approved ARP law.

Experts have highlighted the importance of supporting neighborhood businesses, the so-called “main street” businesses, as they are a major driver in the economy and employment.

The Economist Andres Vinelli, vice president of Economic Policies of the CAP and author of the report “7 principles that should guide the negotiations of economic relief”, stressed to this newspaper that supporting small businesses is essential at this time, to avoid their closure.

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“What is being tried is to prevent businesses from closing, because it is difficult after they open,” he said.

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