American small businesses collapsed because of Covid-19’s resurgence
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American small businesses collapsed because of Covid-19’s resurgence

Larkin is the owner of a karaoke club in Wichita Falls, Texas, USA.

But at that time, Texas Governor Greg Abbott announced that all bars across the state had to close for a second time because the number of nCoV infections was increasing sharply again.

Gabriel Gordon at his restaurant in California.

`We did everything we needed to do,` Larkin said.

In March, when small businesses in the US such as bars, dentists, small law firms, kindergartens and other businesses had to close due to the epidemic, they were very tired.

But now, with a new outbreak, especially in states like Texas, Florida and California, which have just begun to reopen, a second blockade is a final blow to small businesses.

Nearly 66,000 businesses have declared bankruptcy since March, according to data from Yelp, a company that provides a platform for local businesses to advertise their services and track business closure notices.

From June 15 to 29, the rate of completely closed businesses was higher than the previous three months.

Researchers at Harvard University believe that the rate of US business closures is likely to continue to increase.

Christopher Stanton, an associate professor at Harvard Business School, said determining the exact number of businesses closing is not easy because once they have ceased operations forever, contact is difficult.

According to him, it will take at least a year for the government to know the real damage the epidemic causes to small businesses.

According to The Yelp, among the businesses they track, the retail industry, led by stores that provide services and beauty products, is closing at the highest rate since the outbreak.

Small businesses account for about 44% of US economic activity, and their closure on this large scale could devastate the nation’s ability to grow.

American small businesses collapsed because of Covid-19's resurgence

If grouped together, small businesses would rank among the country’s largest companies, according to Satyam Khanna, an expert at the Institute of Corporate Finance and Management at New York University School of Law.

`It will be a major obstacle to recovery,` he assessed.

For nearly two decades, Rich Tokheim and his wife sold sports memorabilia to fans in Omaha, Nebraska.

The 2020 tournament was canceled in March.

Nick Muscari, owner of a barbecue restaurant in Texas.

To support small businesses, the government in April launched a relief package worth $660 billion.

Nick Muscari, 38, a restaurant owner in Lubbock, Texas, also received a loan.

Muscari temporarily closed his restaurant during the first blockade and survived thanks to a loan from the government.

The restaurant’s closure means 30 Muscari employees are also unemployed.

Many small businesses are also tired of having to comply with constantly changing safety guidelines.

`Basically, they needed two 10-foot-wide hallways,` Gordon said.

Vu Hoang (According to the New York Times)

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