Will small businesses in California survive 2020 the sequel? (AKA 2021)
With the pandemic effectively ravaging 3 million jobs in the state of California during the first few months of 2020 while affecting multiple large economic sectors of the state including manufacturing, leisure and hospitality, and retail, small business owners seem to be awaiting the latest forecasts in regards to how the economy will fare in the aftermath of the health emergency.
In this regard, although the number of daily deaths in the state has not yet retreated from its current all-time highs of 750 per day, economists appear to be optimistic about the prospect of a yearly rebound in the state’s gross domestic product, as the progressive rollout of vaccines could put an end to the crisis during the first quarters of the year.
Meanwhile, small business grants in California could continue to assist businesses in surviving this temporary downturn, with Round 2 application for the state government’s Small Business Relief Grant about to open for new applications on February 2.
Alternatives to receive funding apart from small business grants in California
Online lenders like Camino Financial offer small businesses in California the possibility of applying and securing lines of credit and loans to strengthen their liquidity position until the virus situation subsides.
They offer flexible repayment periods and competitive rates to help businesses in staying afloat, while they have expedited what is regularly a time-consuming and paperwork-intensive process by offering 24-hour approvals and funding within only a few days.
These loans can be seen as an alternative or complement to the available small business grants in California offered by the federal and local government and they could even serve as bridge loans that can be fully repaid once the grants are received.
Have you considered taking a small business loan during the pandemic? You can visit Camino Financial’s website to learn more about the alternatives they currently offer.
How has the pandemic impacted businesses in California?
According to a recent publication from the Public Policy Institute of California, the impact of this latest economic crisis has been quite severe for the state on an individual scale, as a significant portion of its domestic economy relies on in-person interaction to thrive.
Meanwhile, the traditionally high housing costs of the California market has made the situation more complicated for households in the state, prompting a wave of relocations as higher unemployment, furloughs, and other similar measures effectively drained the resources of thousands of residents during lockdowns.
In light of the severe impact of the crisis, the California Budget & Policy Center advised the local government that it should prioritize those who might not be reached by the assistance programs launched by the federal government, while also emphasizing the importance of providing economic stimulus in the form of small business grants in California to prevent a “service sector recession”.
What do economists expect in 2021 for California?
One of the most prominent forecasts coming out of a California-based institution in regards to the potential performance of the economy in 2021 was released nearly 45 days ago by the UCLA Anderson School of Management, with the institution expecting to see a 3.6% rebound in the economy by year’s end, coming out of the 3.7% contraction seen last year.
Meanwhile, the same forecast predicts that the unemployment rate during 2021 should land at 6.9%, primarily fueled by a recovery in non-farm payroll jobs, which are expected to grow 3.6% by the end of 2021.
On the other hand, the forecast also anticipates that the state could bounce off its post-pandemic situation at a faster pace than the United States as a whole, led by a recovery in the tech sector – which has emerged as a winner during the pandemic – and by the residential construction industry as the housing market is booming on the back of low interest rates.
Moreover, the continuous injection of resources to the small business sector in the form of small business grants in California can also increase the speed of the recovery, with local authorities aiming to maintain potential bankruptcies and permanent closures in check to avoid permanent job losses.
