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The globe has seen a devastating economic impact as the Covid-19 outbreak has been a disease spreading drastically. Owing to the negative impact the Covid-19 pandemic has caused on most businesses the globe has then suffered a huge threat in its economy.
In an attempt to manage the spread of this deadly virus most countries issued total lockdowns in their entire region, restriction of traveling across countries globally, which is a major means with which most businesses generate their revenue. The businesses that were not remotely organized were perpetually shut down and only those that offer very essential services were left open with strict principles of operation leaving the global economy adversely affected.
Some of the businesses that were negatively impacted by the Covid-19 pandemic include:
This industry/business sector gets its sales mostly from people that are used to traveling, as they find a place to lodge and rest. Since a total restriction was placed on traveling within a country and overseas, businesses were shut down, and social distancing was ensured, this business sector suffered a deep loss in its revenue, also, its workers were affected; as some were sacked from work and others suffered a loss in hours of operation. It is no doubt that this business sector is one of the major industries that received the hardest strike because of the lockdown and travel restriction that constrained travelers from across the nation and the globe.
Tourism and Aviation:
This business sector is also one of the eminent industries that got struck hard, as there was a little in demand among travelers because of the lockdown and travel restrictions. A good number of both the developed and underdeveloped countries with local and foreign airlines have suspended all activities, with the entire airport in each country under a shutdown according to the order given by the Federal Government. A report that was circulated in March by the International Air Transport Association (IATA) gave an estimate of the loss the business sector suffered from a figure which was roughly over $252 billion in the globe altogether.
Real Estate and Construction:
The restriction order the federal government gave on the masses movement and the policy that was also introduced which entails 2 meters distancing (social distancing) seriously affected the possible rendered services in construction activities in the globe entirely with individuals and organizations trying to introduce safety measures that will help them manage the spread of the virus. Also, only a little number of property buyers will attempt to acquire houses since there is already a loss of interest due to the negative impact Covid-19 caused in the world economy, which includes; drop in income, loss of jobs, and loss in hours of operation.
Cinemas and Entertainment:
One of the big industries that also have a vast urge from the masses is the Film and Entertainment Industry. In general, this industry has experienced a significant negative impact; most of the activities carried out in the cinema could not function, including movie theatres, movie premiers, musical concerts, and art exhibitions that have been equally canceled while some postponed. The Covid-19 outbreak so many strikes this industry negatively to the point of the business sector losing a multi-billion worth of deals.
The trade sector can't escape through the negative impact the Covid-19 has caused in the world economy, this is owing to the shutdown order given by the federal government on factories, the shutdown order on the factories caused limited access to commodities and raw materials due to the challenged faced in the supply chain. Due to the lockdowns, closure of seaports, and closure of borders billions of dollars will be lost on imports and export trade. China, a major country which with its current integration is crucial to worldwide trade in the main supplier and value chain and buyers of average inputs, its trade will likewise be affected due to the disruption it is dealing with in respect to the disease.
Oil and Gas Industry:
This industry is also largely affected by the Covid-19 outbreak, the restrictions given on movement have led to a huge drop in the oil demand, it has also led to a drop in the prices of crude oil around the globe. Many attempts were made to help balance the loss and profit of the Oil and Gas industry, one major attempt was the coming of the Organization of the Petroleum Exporting Countries (OPEC) and other top oil-producing countries through a means called output cut, all these have still not helped in improving the negative impact Covid-19 caused on the industry nor stabilize the industry market.
The lockdown order which also triggered low purchases from customers, the shutdown of factories and production lines have also hurt the manufacturing sector.
Consultants and Services:
Another sector that is negatively affected is the Consultant and Service provider. The crash in revenue by government institutions and companies which is due to the meltdown in the global economy resulted in tightened budgets which perpetually affected the consultants negatively.
Start-ups and Small businesses:
Many businesses were likewise affected by the lockdown order given by the government because of the covid-19 outbreak. Business people were forced to take quick actions to maintain their status and position in the business. Startups have been left as one of the most vulnerable businesses due to the preventive measure taken by the government to curb the spread of Covid-19.
SPECIAL LOANS AVAILABLE FOR COVID-19 AFFECTED BUSINESSES
Many businesses find it very difficult to accurately analyze how their gross income will be affected by COVID-19 owing to a series of unidentified factors the pandemic has caused.
One of the noticeable products of Covid-19 is the huge economic shock it has brought on so many businesses and the world as a whole; nevertheless, the coronavirus will also convert and affect business in some other ways.
Some businesses that involve in technologies and shopping platforms will continue to make sales and keep playing a fresh important position even after the Covid-19 pandemic has wiped off, while businesses whose sales depend on shifting location and face-to-face interaction would be suffering from broken sales and incomes.
In the tip of March, several businesses complained that their sales revenue dropped back by about minus 6 percent in respect to the coronavirus-related development
Due to the disaster, the Covid-19 pandemic has caused to the majority of businesses run around the globe, certain loans are then made available to support these businesses from running bankrupt.
The special loans made available for business affected by the Covid-19 pandemic are listed below:
A. CORONAVIRUS BUSINESS INTERRUPTION LOAN SCHEME (CBILS):
The Coronavirus Business Interruption Loan Scheme (CBILS) can make available facilities that are up to five million euros (E5m) for business with smaller revenue across the United Kingdom; the British Business Bank’s roster of 40+ accredited lenders is the means with which the Coronavirus Business Interruption Loan Scheme (CBILS) is delivered. The range of business finance facilities supported by the Coronavirus Business Interruption Loan Scheme (CBILS) includes overdrafts, term loans, invoice finance, and asset finance. CBILS was launched at the tip of March and will be accessible for applications within the time frame of six months, there is likewise a possibility that the six month period of application extend if the Covid-19 pandemic period does not stop).
FEATURES OF THE CBILS SCHEME
For the Coronavirus Business Interruption Loan Scheme, the government gave certain principles that show eligible individuals
B. CORONAVIRUS BOUNCE BACK LOAN SCHEME (CBBLS):
The United Kingdom declared a special loan with the name “Bounce Bank Loan” scheme (CBBLS) this loan will be dispensed through a government network of purported “accredited lenders”, including all the important financial institutions already included on the government’s list of accredited for CBILS.
FEATURES OF THE CBBLS SCHEME
Any business that is in alignment with the following criteria can apply for the Coronavirus Bounce Back Loan Scheme (CBBLS):
C. OPEN FOR BUSINESS LOAN PROGRAM:
The Covid-19 pandemic has negatively affected many local and small businesses in the Kerr-Tar Regional. The Kerr-Tar Region Council of Governments then attempted to help the businesses in this region with a loan program known as “Open for Business Loan Program.” This reason this loan program is set down is to assist the business that is still small and medium based on their revenue to recuperate from the negative effect the Covid-19 economic
FEATURES OF THE OPEN FOR BUSINESS LOAN PROGRAM
Open for Business Loan is a non-venial interest-free loan, which ranges from $10,000 - $100,000.
D. PAYCHECK PROTECTION PROGRAM (PPP)
The Paycheck Protection Program is a loan made available to provide a direct bonus for small businesses to still help their workers remain on the business payroll. The Paycheck Protection Program was originally raised with a sum of $350 billion intended to help small businesses in the United State of America with eight weeks of cash-flow aid via 100 percent guaranteed loan from the federal government. The Paycheck Protection Program loans are strengthened by the Small Business Administration (SBA).
FEATURES OF THE PAYCHECK PROTECTION PROGRAM (PPP)
E. ECONOMIC INJURY DISASTER LOANS (EIDL)
The Economic Injury Disaster Loan is set down to assist small businesses to gain victory over the momentary loss of gross they are encountering because of the Covid-19 pandemic. The Economic Injury Disaster Loan is fundamentally brought about for businesses to use in paying fixed debt, account payable, payroll, and other monetary bills that can be paid because of the pandemic (and that the Paycheck Protection Program loan did not already cover).
FEATURES OF THE ECONOMIC INJURY DISASTER LOAN (EIDL)
F. SBA EXPRESS BRIDGE LOANS
Businesses that already have a standing relationship with SBA Express Lender are helped by the SBA Express Bridge loan to speedily get a loan up to $25, 000. The SBA Express Bridge loan aims to help small businesses overcome any momentary loss of revenue they are encountering because of the Covid-19 pandemic.
FEATURES OF THE SBA EXPRESS BRIDGE LOANS