United States and COVID-19: a tense situation for French expatriate companies

The United States is the country most affected by the COVID-19 pandemic. Like France, it is also experiencing a major disruption of its economic activity between containment and restrictive measures. This situation affects not only the population of the various states, but also companies in all sectors of activity. In this ever-changing market, French companies are struggling to keep working. How are they doing when the pandemic has been going on for more than a year?

United States, upheavals since 2020

The United States has been in the spotlight for over a year now. Starting with the presidential elections, an event that is publicized around the world. Elections against the backdrop of an international pandemic, during which Joe BIDEN succeeds Donald TRUMP as the 46th President of the United States. This is an important change because two programs are at odds. But coming to power for a new President, in a climate like the one the world is currently experiencing, is not the simplest.

Indeed, the country lost 549,335 citizens as a result of the pandemic, a tragedy for the world’s leading power. Especially since, like other countries in the world, the United States is also going through the beginning of an unprecedented economic crisis. For the professional community, this situation is delicate and uncertain. Unlike France,when an American company is no longer able to pay its employees, it has no choice but to lay them off.

On the contrary, in France, all measures are taken to keep employment as much as possible. Partial activity, business aid… France is mobilizing for its companies and the assets that contribute to the economy. The American dream has inspired French companies to move abroad, to start a career across the Atlantic. But the COVID-19 pandemic also has an impact on key sectors of activity on the ground. Restaurants, bars, but also shops, retail close their doors. However, they are obliged to continue to honour the payment of the rent. A situation that does not help a company’s finances.

City USA economy company
Foreign companies appreciate the United States.

Despite this, Americans remain positive, in an environment where the social system is not adapted to the current situation. Indeed, no job security, a coverage of health costs much less favorable than in France to the most modest households.

A contrasting situation in the United States

Unlike the restaurants and other establishments mentioned above, others have doded better. Indeed, the businesses around B to B, communication or companies that offer solutions have to adapt their business through digital. This has allowed them to continue to work normally since the beginning of the pandemic. An area in which French companies are particularly present.

For its part, the industrial sector is more mixed. Industries continued to operate, but in smaller teams to comply with sanitary measures. On the other hand, these companies sometimes wait for parts that do not arrive. States are managed independently of each other, and therefore, the delivery of these parts is not homogeneous.

At the end of March 2020, the Government put in place a historic $2 trillion aid plan to help businesses. This aid plan is decanted into two aid packages: the Families First Coronavirus Act, and the Paycheck Protection Program.

It is aimed at companies that paid $10,000 in monthly wages in 2019. For these companies, the Government gives 2.5 times that amount in debt, or about $25,000. Once the amount is received, the company has 8 weeks to spend it. 75% of the envelope must be reserved for the payment of salaries, 25% for the payment of rent and telephone factors. If these conditions are met, this amount is considered a subsidy, and more as a loan.

Flag USA companies
The U.S. government supports companies in difficulty.

Originally, this plan was reserved for U.S. companies only. But in the face of the grumbling of foreign companies, they were also given access to aid. A welcome help to continue practising in the United States.

Preparing for its arrival in the United States

How to prepare for your arrival in the United States when you are a French company that wants to emigrate? If nothing prevents The French from establishing themselves in the United States… It is still necessary to take precautions. The country no longer issues visas to expatriates, which limits access to the country for commercial travel.

It is therefore necessary to take your time before establishing yourself on the spot… But also to have the ability to meet its costs for several months without turnover. Instead, experts recommend taking the time to learn about the market, the culture… Even if you partner with an American already there to run the company.

Sources:

The establishment of French companies in the United States at the time of the pandemic, Orbiss

SBA Paycheck Protection Program (PPP) US Small Business Administration

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