The Daily Rundown

SMB News Daily Rundown: Update for April 30

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 30:

Highlights:

  • As federal stay-at-home order expires, most states prepare to reopen
  • Private grants keep small businesses afloat 
  • House politicians eye next round of stimulus funding, prepare for a party line clash
  • White House discusses “punishing” China for coronavirus 

Federal stay-at-home order expires

“While there are massive societal costs from the current shelter-in-place restrictions, I worry that reopening certain places too quickly before inaction rates have been reduced to very minimal levels will almost guarantee future outbreaks and worsen longer-term health and economic outcomes.”

President Trump has indicated he has no intention to renew the federal stay-at-home order, leaving governors responsible for creating plans to reopen state economies

While some states, such as New York and California, are holding the line on sheltering in place, others have initiated multi-step phased plans for restarting the economy. The majority of these plans will take effect within the next few days

As employers begin calling workers back, many will be faced with the choice: risk their health or become ineligible for unemployment benefits

Private grants keep small businesses afloat 

“We are looking for small businesses, urban and rural, that size between 5 to 15 employees. Businesses that are the backbone to their communities.”

For small businesses unable to access funds through the Paycheck Protection Program (PPP), grants from private entities, such as Verizon, have made all the difference. Female, minority, and urban-based businesses face multiple barriers to securing funding, so private grant funds represent the difference between staying afloat and closing due to the COVID-19 crisis. 

Democrats proposing next round of stimulus funding to support cities and states 

“This is to allow us to keep firefighters, teachers, police, [emergency medical services] on the payroll, serving the communities in their hour of need. And that’s something that we feel strongly about. We don’t see it as a bailout. We see this as a partnership.”

Speaker of the House Nancy Pelosi has indicated that congressional Democrats are considering new legislation totaling $1 trillion to support cities and states for the next round of economic aid. While the size of the package is much larger than formerly anticipated, House leaders point to the dire straits states find themselves in due to overwhelming strains placed on their coffers due to unemployment claims and other pandemic-related expenditures. 

Republican lawmakers have signaled their resistance to such measures. 

White House wants to “punish” China for COVID-19

“But we will find ways to show the Chinese that their actions are completely reprehensible.”

The White House has indicated that they will hold China responsible for the economic devastation wrought by the COVID-19 pandemic. U.S.-China trade relations were only recently recovering after a “Phase-One” deal was reached over tariffs late last year. 

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