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 July 20:
- Federal unemployment supplemental payments on course to expire July 25th
- New York City schools to provide childcare for 100,000 children
- Small business bankruptcies could disrupt mortgage market
Federal unemployment payments end this month
“I’m trying not to worry too much about it. But it’s hard to keep pushing it off, knowing that there’s potentially that massive of a financial hit coming.”
Senate Majority Leader Mitch McConnell announced that he will begin the legislative process for the next round of pandemic aid in the next few weeks — a timeline that allows the federal supplement to unemployment benefits to lapse for tens of millions of American workers.
Since most unemployment benefits are paid out on Saturdays, the current supplement will expire for most people on July 25th since the funding for the program runs out on Friday, July 31st. The Senate reconvened today in Washington, D.C. after July recess.
NYC schools to provide childcare for 100,000 children
“We’ve got to give more ability to parents who need to get back to work … child care will make all the difference in the world.”
New York City announced late last week that it will provide childcare for 100,000 children in an effort to support workers getting back to work while public schools are not fully open.
As pressure from the White House mounts for schools to reopen, educators are scrambling to find creative ways to maintain social distancing in school buildings in order to keep children and teachers safe.
Small business bankruptcies could disrupt mortgage market
“Everybody anticipates that at some point there will be an increase in these. Will it work? No one really knows, especially if a lot of cases come in.”
Last year’s changes to bankruptcy laws have the potential to cause a spike in home mortgage modifications tied to small business bankruptcies.
The new code allows borrowers to change the terms of second home mortgages to avoid losing their property when declaring bankruptcy, restructuring, or settling small business debt. These protections were further expanded in the pandemic rescue legislation passed earlier this year.
Because of current low interest rates, these changes could seriously disrupt the mortgage market as more small businesses go out of business, modify the terms of their loans, and cause a subsequent devaluation of the loan in the process.