Coronavirus crisis in France: The battle to save the livelihoods of the self-employed

Facing the economic strain from the financial fallout caused by the coronavirus crisis, Tenino is printing its own money like it once did in the wake of the Great Depression. The small town in Washington has issued at least $2,500 worth of wooden bills to exclusively be used for small businesses on Main Street. Thirteen residents have applied for the funds and $150 have been spent by residents on necessities as of June. Other small towns across the country have already sent inquiries to the mayor of Tenino, seeking to imitate Tenino's effort.

The German government has spent billions to keep small businesses and freelancers afloat during the pandemic. Entrepreneurs who qualified were sent funds, often within 2 business days, specifically for business-operating costs such as commercial rent. Some businesses are hoping for more support in the form of rent freezes depending on how long the lockdown continues while others lost out on funding by waiting too long. The program ran out of money but the government has announced additional aid packages.

Community banks in Wyoming were able to better serve local businesses in securing federal funds from the Paycheck Protection Program. The smaller banks were able to quickly pivot their staffing and operations need to process the overwhelming number of applicants, resulting in an approval rate of 100 percent in some counties. Personal connections in the smaller communities also led banks to work overtime and do everything in their power to help local businesses, in contrast to big banks which appeared to prioritize clients with higher net worth, according to reports.

Community banks in Texas have outpaced much larger national banks in approving and funding loans that are keeping businesses afloat during the pandemic-induced lockdown. The lone star state leads in the number of loans processed totaling $17 billion - saving a reported 200,000 jobs. Businesses in Texas have received more loans than any other state due to community banks that have been working around the clock. The banks have managed to approve as many loans as they typically would in an 18-month period.

Germany's creative workshare approach to stemming unemployment has prevented mass layoffs, unlike rising numbers in the United States. The German government provides payroll subsidies which allow an employer to keep on its staff by cutting back hours for everyone. Unemployment funds that would usually go to those who are laid off are instead directed to employers' payrolls, preventing the inconvenience and uncertainty of layoffs and allowing workers to seamlessly return to work full time when the health crisis is under control.

The Italian government's attempt to assuage the financial fallout of the pandemic on small businesses, freelance workers, and the self-employed did not achieve the desired results despite the enormous size of the aid package: 25 billion euros. Delays, technical glitches, and language barriers for international workers have plagued the application process from the day it was launched and over half a million applications have yet to be processed. Italians also criticized the 600-euro amount which is the average rent in the country, often higher in some areas. The government has announced additional aid.

The Cares Act is a federal program providing $46.6 million dollars of emergency aid which cities in Louisiana are spending on a combination of a mortgage and rent relief or on the needs of small businesses. For most cities throughout the state, the first priority is keeping residents in their homes as the stay on evictions approaches, at which point landlords will expect rent as well as backpay. Louisiana faces the triple threat of a pandemic, the economic fallout from it, and a series of tornados. Keeping people in their homes has been the foremost priority to stop the spread of the virus.

Despite a nationwide months-long coronavirus lockdown in Norway, the economy was able to remain stable due to a "decades-long effort to create an equitable economy" that helped the government to enact a package that provided businesses and self-employed individuals' tax relief and deferrals. Although Norwegians pay roughly the same amount of taxes that Americans do, their taxes largely pay for social welfare programs which include unemployment benefits, retirement pay, and health care coverage. This "national ethos of economic equity" is what helped the country to navigate the pandemic.

Throughout the economic crash of 2008, banks were "vilified" for their response, but as the economy again teeters on crashing during the coronavirus pandemic, regulators have been able to be proactive in their approach. While several banks are making financial contributions to philanthropies, and public health efforts or creating relief funds, others have agreed to temporary forbearance on certain types of loans which enables "local business owners and workers to defer payments without penalty to the end of their loan terms."

A collaborative funding organization called the Runway Project gives loans to primarily Black entrepreneurs in the Oakland area. The initiative aims to address racial disparities in startup capital by reducing the financial risk of starting a business. The program also includes personalized support as a "wrap around" approach to the lending process.