The COVID-19 pandemic is an ongoing crisis that has had immense social and psychological effects. The discussions thus far on how to remedy the harmful impacts have consisted of short-term economic bandages from the government. But these policy prescriptions fail to appreciate the potential of businesses, entrepreneurs, and nonprofits to help communities withstand and overcome crises. Extensive Mercatus research on community response and recovery after disasters has shown that commercial and social entrepreneurs are key drivers of disaster response and recovery. Responding to and recovering from this pandemic will require a similar approach spurred on by entrepreneurial ideas and solutions as well as a policy environment that encourages rather than stifles entrepreneurship. See how policymakers can give entrepreneurs space to act and find solutions amidst this crisis.