How to Help Local Small Businesses Financially Impacted by COVID-19
A significant driver of the economy – and our communities – is reeling as much of America has been brought to a halt to fight the spread of coronavirus.
Small businesses create two thirds of net new jobs in the U.S. and account for 44 percent of the nation’s economy, according to a 2019 study from the U.S. Small Business Administration.
Many businesses are vital and well-loved parts of our communities, but the restrictions due to COVID-19 have caused many to shutter or greatly reduce operations. Harder-hit local businesses may be evaluating whether they’ll be able to re-open when the restrictions are lifted.
So, how can we help during these unprecedented times?
Here are three ideas for helping local businesses during the COVID-19 crisis:
While your favorite restaurants might be closed to diners, many of them continue to offer takeout or curbside pickup options. Consider adding takeout to your dinner plans one extra night per week to help businesses make up for lost dine-in revenue.
Small businesses create two thirds of net new jobs in the U.S. and account for 44 percent of the nation’s economy.
Buy gift cards to your favorite local restaurants/shops
Many businesses are selling gift cards, and often they can be purchased online for a contactless transaction. Gift card sales help these local establishments with an infusion of cash when they’re otherwise not receiving revenue. When businesses are running at full capacity again, you can redeem the gift card and show your support with your presence.
Invest directly in small businesses if you can
It’s possible to provide a direct financial boost to businesses taking a hit. You may be thinking, “I’m not a bank, so how could I help?” If you have money sitting in your retirement account, you could potentially help a small business, either with a loan or by investing in a business.
Through a self-directed IRA, it is possible to provide promissory notes or invest in private businesses. Many investors don’t realize there’s a wide variety of options when it comes to investing your retirement account – in fact, the IRS lists only a handful of investments that aren’t permitted in an IRA.
To invest in a small business with an IRA, you need to open an account with a self-directed account custodian such as Equity Trust.
Are you using your self-directed IRA to help your community in this time of need? We want to hear your story! Email ETCnews@trustetc.com and tell us about it.
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