Welcome to the Small Business Rundown. Each day, we bring you stories that impact small business owners and their workforce.
Small Business News Highlights for April 22:
- More details emerge about the newest round of small business stimulus money
- New timeline for first U.S. novel coronavirus infections
- Jobless claims continue to climb
More funding is on its way for SMBs
“The best way to get the economy back and running is to begin to open it up again, rather than passing immediately another bill where we have to borrow.”
The Senate passed another round of COVID-19 economic stimulus money yesterday, including $322 billion for the Paycheck Protection program, with $60 billion specifically set aside for small lenders. The bill also included $60 billion for small-business disaster loans and grants, $75 billion for hospitals and, despite President Trump’s protests, $25 billion for coronavirus testing. You can read the full text of the legislation here. For a rundown of how to apply for this new wave of funding, read this.
While Democrats indicate that they believe that this bill laid the groundwork for more spending measures aimed and propping up the economy, Republican leadership has signaled their growing concern with deficit spending and indicated that they may favor letting states declare bankruptcy rather than bailing them out.
New timeline for COVID-19 infections
“It shifts everything weeks earlier, extends geographic involvement, (and) further shows how our inability to test let this outbreak loose.”
California has revised the timeline for when the state saw its first COVID-19 related death. Recent autopsies indicate that two individuals in California died as many as 3 weeks prior to the first supposed COVID-19 death in the U.S. While this information underscores the problems the U.S. has encountered due to a lack of reliable testing, it also raises questions about how widespread community transmission has been, if antibodies confer lasting immunity to the disease, and what it means for opening the economy moving forward.
Unemployment claims continue to climb
“Claims have moved past the peak more visibly now, but the cumulative number is still rising significantly.”
Another 4.5 million people filed for unemployment last week. While some states have been hit harder than others, economists report that most states saw declining numbers than previous weeks. While the number of unemployed Americans is staggering, it’s worth remembering that the number of unemployed people is not necessarily as significant as the length of time that they remain unemployed.