The Covid-19 situation has changed the work environment for a lot of companies in Sweden. Due to restrictions from Sweden's health care association, people have been working from home to as large extent as possible. Even though the work environment in the software industry was started to be digitized before Covid-19, it has been a huge readjustment for the employees. The software industry has been selected for this study for its significant importance for the BNP in Sweden. SMEs have been selected to cover as large a portion of the companies as possible. This study goes through how Covid-19 has affected the agile way of working within agile teams in software SMEs. To do this investigation, a grounded theory approach with qualitative interviews from 11 different software companies, and 13 participants has been made. The analysis of the study resulted in six main impacts that Covid-19 has had on agile teams in the software SMEs: Communication, Structure, Motivation, Health, Relationship, and Responsibility.