USA also... Increasing damage to small self-employed businesses due to COVID-19 spread

On the 12th (local time), despite it being rush hour, the bustling area of Times Square in New York, USA, appeared quiet. Due to the impact of the novel coronavirus disease (COVID-19), performances in the Broadway theater district of Manhattan, New York, have been temporarily suspended. Photo by Yonhap News Agency

[Asia Economy Reporter Moon Hyewon] Local media reported on the 13th (local time) that small-scale self-employed businesses in the United States are suffering damage as various events are being canceled and office buildings are empty due to the spread of the novel coronavirus infection (COVID-19).

According to The Washington Post (WP), sales at coffee shops and restaurants on K Street in Washington DC have dropped by as much as 40% compared to before the COVID-19 outbreak. WP attributed this to employees of nearby companies staying at home due to telecommuting instead of going to the office.

Additionally, as embassies and think tanks canceled events, catering orders disappeared, and fewer people are bringing clothes to laundries.

Raj Kapoor, who runs the 'Italian Gourmet Deli' restaurant, said that if catering services disappear, one-third of their sales would be lost.

Hugh Grant-Chapman, who delivers food at 'Miko Cafe' near Dupont Circle in Washington DC, said that although people still come to dine, the catering business, which accounts for most of their sales, has collapsed.

Daniel Inn, owner of the nearby laundry 'Swift Dry Cleaners,' said, "If people don't work, they don't need dry cleaning," and reported that the business is struggling.

WP pointed out that social distancing measures being implemented across the United States to curb the spread of COVID-19, such as cancellations of cultural and sports events, school closures, and companies switching to telecommuting, are essential for public health but devastating for businesses.

According to the U.S. Census Bureau and the Small Business Administration (SBA), as of 2014, small businesses with fewer than 500 employees accounted for 44% of the total U.S. Gross Domestic Product (GDP) and employed 48% of the total workforce.

The U.S. Small Business Administration (SBA) has announced that it is prepared to offer low-interest loans of up to $2 million to small businesses affected by the COVID-19 outbreak.

This content was produced with the assistance of AI translation services.