Welcome to the Small Business Rundown. Each day, we bring you stories that impact small business owners and their workforce.
It’s Friday the 13th, the President has declared a national state of emergency, and the stock market is all over the place. Here’s a sample of some of the news impacting small businesses today:
Coronavirus causing supply chain squeezes for small businesses
New data from the The National Federation of Independent Business reports that 74% of small businesses say that they’ve yet to feel the impact of the coronavirus pandemic, though 42% are seeing slower sales and nearly 40% have seen a disruption of their supply chain. This comes on the heels of historically high levels of optimism in the small business community.
The Number: 3%. Currently, 3% of small businesses report a positive impact from the coronavirus.
The Quote: “I am reaching out proactively to buyers, letting them know there may be delays. Everyone has been so understanding because it’s affecting everyone, not just in our country, but in the world. I am really hoping this starts to normalize and the supply chain gets back on track soon.”
Banking experts report widespread panic in the small business community
The White House has announced $50 billion of funds for SBA-backed small business loans in an effort to keep vulnerable companies afloat. This would double the amount of money available to small businesses and help offset the impact of drops in consumer spending and interruptions to supply chains and deliveries.
The Number: $50 billion. The president announced that $50 billion will become available for low-interest loans backed by the SBA.
The Quote: “While this is a great step to boost credit to small business, it will take three to four weeks before the impact is seen on the ground.”
Seattle announces grant program to aide city’s small businesses
The mayor of Seattle announced a $1.5 million program to help offset the impact of the coronavirus on the city’s small businesses. The area is currently one of the hardest hit in the country, and the mayor called on the federal government for fiscal support as well. Currently, only businesses with 5 or fewer employees are eligible for the grant money.
The Number: $10,000. Grants of up to $10,000 will become available to Seattle small businesses.
The Quote: “Our small businesses have been devastated in recent weeks, and we know the crisis will be felt for months.”