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States try to rescue small businesses

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With the economic recovery faltering and federal aid stalled in Washington, state governments are stepping in to try to help small businesses survive the pandemic winter.
The Colorado legislature held a special session last week to pass an economic aid package. Ohio is offering a new round of grants to restaurants, bars and other businesses affected by the pandemic. And in California, a new fund will use state money to backstop what could ultimately be hundreds of millions of dollars in private loans. Other states, led by both Republicans and Democrats, have announced or are considering similar measures.
But there is a limit to what states can do. The pandemic has ravaged budgets, driving up costs and eroding tax revenues. And unlike the federal government, most states cannot run budget deficits. ....

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In absence of more federal action, Ohio and other states are stepping in to help small businesses during the pandemic

December 10, 2020 12:22 PM
In absence of more federal action, Ohio and other states are stepping in to help small businesses during the pandemic
The Ohio Statehouse in Columbus
A Cleveland small business owner is featured prominently in this New York Times article about states efforts to help companies survive the pandemic winter as the economic recovery falters and federal aid is stalled in Washington.
Ohio is among the states that is stepping into the breech, offering a new round of grants to restaurants, bars and other businesses affected by the pandemic, the Times says. But, as the paper notes, there is a limit to what states can do. The pandemic has ravaged budgets, driving up costs and eroding tax revenues. And unlike the federal government, most states cannot run budget deficits. ....

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States Try to Rescue Small Businesses as U.S. Aid Is Snarled

State governments are offering loans, grants and tax rebates, but budget constraints limit their impact. ....

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