American businesses have always been heavily reliant on credit and loans. In fact, in July of the pre-COVID world, large businesses in the United States had over 10 trillion in nonfinancial corporate debt. Yet, while credit has long been a lifeline for drowning businesses, during the COVID crisis there is a new form of lending that can save businesses that have had to lay off a majority of their workers: labor loaning. Labor loaning is exactly what it sounds like - instead of loaning someone your money, as a business, you are loaning them your workers for a fee. This enables you to keep your workers employed and paid, even if your business activity alone cannot support them. 

In a time of crisis, when speed and flexibility are most valuable, businesses rely heavily on the transparency, efficiency, and adaptability of their supply chain. Near-term investments in alternate sources, with a focus on domestic producers, will help companies mitigate the risk of supply shocks. Long-term investments in supply chain simplification and transparency will enable businesses to adapt to rapidly-evolving situations, like the coronavirus pandemic, in the future.

The PPP was established through the CARES Act in order to help small businesses affected by COVID-19. The PPP is a loan designed for small businesses to guarantee their employees eight weeks of payroll and can also be used to pay rent, mortgage interest, and utilities to qualify for loan forgiveness (at least 75% of the forgiven amount must have been used for payroll). Otherwise, the loan will mature in two years and has a 1% interest rate. Loan payments are deferred for six months, and no collateral is necessary.