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RESEARCH ROUNDUP
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April 25, 2020
COVID-19 Policy Brief Series
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A Government-Backed Line of Credit Would Help Small Businesses More Than Current Relief Efforts
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Veronique de Rugy and Arnold Kling
In the wake of COVID-19, small businesses and families are facing potential economic devastation that could be disastrous and irreparable. While government grants and loans provided through the CARES Act have been implemented to soften this economic blow, these policies should not be the main focus for saving small businesses. The government’s current plan for relief is problematic in theory and in practice. Senior Research Fellow Veronique de Rugy and Senior Affiliated Scholar Arnold Kling suggest a more helpful alternative that directly addresses the needs of small businesses: a government-backed line of credit.
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