It’s no secret that coronavirus has been nothing short of devastating for small businesses. Even with the Small Business Administration (SBA) offering financial relief in the form of the Paycheck Protection Program (PPP) and the Economic Injury Disaster Loan (EIDL), many small businesses are still struggling to keep their doors open. So far, the numbers have been astronomical — to the tune of some 100,000 small businesses closing down permanently, according to a report from the National Bureau of Economic Research — and they’re expected to continue to rise as the pandemic drags on.
With that in mind, American Express has come forward with their own disaster relief program of sorts. Between now and the 20th of September, the credit card company will be offering a cash back rewards incentive for their cardholders. The program is fairly simple and straightforward: for every $10 (or more) that you spend at a small business, Amex will give you a $5 statement credit on your account. This can be repeated up to ten times, for a total of $50 in rewards. Not bad, huh? But the question remains: what’s a mere $50 in the grand scheme of things, and will it actually help out small businesses in the long run?
Well, first and foremost, $50 is no small chunk of change. For most of us, it’s a fairly decent perk, especially since it requires us to do what we would have done anyway (shop at local businesses). Whether you feel like getting takeout from your local mom-and-pop restaurant, you’re going to pick up a few groceries for dinner tonight at your corner market, or you need to take Fido in for a checkup at your neighborhood veterinary clinic, these activities all count toward the reward program. You’re literally getting paid for shopping locally. Easy peasy.
And secondly, historic data does prove that these incentives do work. Amex rolled out their first small business reward program back in 2010, called Small Business Saturday®, as a response to the mass consumerism of Black Friday. In 2015, the SBA decided to get in on the fun and joined forces with Amex, sponsoring the program. Even better, a study from 2019 revealed that a whopping $19.6 billion was funneled back into local economies thanks to the initiative. So while “just” $50 may not seem like much, it adds up to impressive numbers when seen from a more macroscopic perspective.
This isn’t the only program that has Amex’s name standing behind it, either. The company is also the driving force behind the Stand for Small program, which unifies larger businesses who are offering their own helping hand to smaller businesses. Whether you’re looking for assistance in managing your expenses, or you’re in need of help in growing your online presence, the Stand for Small program was designed to help make this possible. Large names like Amazon and eBay are included in the ranks that have rallied behind Stand for Small, lending clout to this program.
So what’s a little extra $50? Is it worth it to you? Sure, the intentions of some of these companies may be somewhat less than magnanimous — there’s no arguing that there’s something in it for them, as well — it doesn’t change the fact that in an economy that’s been crippled by COVID-19, they’re actually doing something instead of just sitting there idly and waiting for someone else to take action.
That, at least, has to be worth something. And if you’re wanting to get your hands on a share of the cool fifty bucks courtesy of Amex, they’d like to remind you that you do need to enroll in the rewards program no later than July 26. If you don’t, you may miss out on your opportunity to help keep small businesses afloat (while also enjoying an extra $5 in your pocket here or there), courtesy of American Express.