By providing support for workers and small businesses, local governments will play a crucial role in weathering the virus and stabilizing the economy.
“[L]ocal governments are well-positioned to step in with economic aid in the near-term,” according to an article by Joseph Parilla for Brookings, filling in for federal and state levels of government in critical areas of economic stabilization.
“Worker protections are a critical first step in any city-level economic stabilization plan,” according to Parilla, who lists efforts in Washington, D.C., California, and Washington to provide unemployment insurance for workers who can’t work due to quarantine or shelter in place orders.
“The second major policy response among cities has been small business stabilization,” adds Parilla. Examples of small business stabilization listed by Parilla include a move by Seattle to defer business and occupation taxes for eligible businesses, expand its Small Business Stabilization Fund, and “provide technical assistance to business owners seeking relief from the U.S. Small Business Administration.”
Key to all local efforts, and Parilla lists more in the source article, is the need to move quickly. “According to the JPMorgan Chase Institute, 47% of small businesses have less than two weeks of cash liquidity on hand, with restaurants and retail operating at the slimmest margins.”
FULL STORY: How cities are helping workers and small businesses during the coronavirus crisis
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