Question

As we watch the Corona Virus turn into a Pandemic we are seeing some business close down (Princess Cruises, Viking Cruises among a few). How do you think this pandemic will effect local businesses? Back up your response with research.  

How do you think President Trumps measure to preserve business will effect local businesses?  

How is the stock marketing effecting local business??

Answer 1

As the corona virus continues to spread, so do the concerns of individuals and business owners. For many businesses, the virus threatens to disrupt supply chains, production, and revenue. Many are looking to business disruption insurance to cushion the blow. But the safety net they thought they’d purchased may not be there.

Businesses, large and small, could experience an interruption to their business due to the corona virus outbreak. Many will seek relief through their business insurance, specifically through policies that cover business interruptions. But while many policies do have business interruption coverage, a significant number of these policies exclude compensation for communicable disease outbreaks, a change many insurers made after the SARS outbreak of 2003.

But many existing business disruption coverage pays only for quantifiable physical losses, like repairing and replacement of damaged property and inventory.

If the corona virus disrupts business, there may be no physical damage to the organisation.

Companies may see business slowdown, incur a loss of revenue, experience disruptions in the supply chain, or completely close due to the need to disinfect. But none of these would be the result of physical damage, and none would trigger payout from a typical business disruption policy.

The U.S. Small Business Administration is offering the loans through funding provided by the Corona virus Preparedness and Response Supplemental Appropriations Act recently signed by President Donald Trump.

A state must submit documented business losses for at least five businesses per county to qualify for the program.

SBA Economic Injury Disaster Loan assistance declaration will make disaster loans of up to $2 million available to small businesses and private, nonprofit organisations in states that are approved for the program.

“These loans may be used to pay fixed debts, payroll, accounts payable and other bills that cannot be paid because of the impact of COVID-19. The interest rate is 3.75% for small businesses without credit available elsewhere and 2.75% for nonprofits. Businesses with credit available elsewhere are not eligible for this program,” the news release states.