The Daily Rundown

SMB News Daily Rundown: Update for July 22

Welcome to the Small Business Rundown. Each day, we bring you stories that impact small business owners and their workforce.

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Small Business News Highlights for July 22: 

  • Small business data indicates recovery moving backward in COVID-19 hotspots
  • Childcare crisis highlights racial disparities 
  • Republicans agree on need for additional stimulus checks, resist payroll tax cuts 

Recovery moving backwards in COVID-19 hotspots

“Areas that have seen a spike in coronavirus cases are seeing declines in business activities, although the declines are not as steep as during the first wave of cases.”

A look at unemployment and small business data shows that the number of people going back to work has actually decreased from early June to mid July in 6 different states. 

In Texas, Florida, Arizona and 3 other states, the number of unemployment claims has increased by at least 5% as coronavirus cases have surged in those locations. Economists do note, however, that though business activity has declined in many places since the first indications of recovery, the drop off has not been quite as steep as the initial crash following mandatory closures. 

Childcare crisis highlights racial disparities 

“When you look at the impact on providers and providers of color, and women of color who are parents looking for jobs, we really created a perfect storm.”

The childcare crisis in the U.S. has dealt a double blow to Black and Latina women since these women both make up almost half of all providers while simultaneously struggling to find affordable care options for their own children. 

During the height of the pandemic, nearly 60% of the nation’s childcare providers had to close. Now, 2 out of 5 providers report that without funding from the government, they will not be able to keep their doors open. 

While both Republicans and Democrats agree that the childcare sector needs imminent support, the parties disagree on how best to go about it.

Republicans agree on need for additional stimulus checks, resist payroll tax cuts 

“I’m not a fan of that. If it’s a choice between doing checks and payroll tax cut, I think it’s pretty clear the checks actually have a more direct benefit to the economy.

Multiple sources are reporting that Republicans have shifted the party’s position to acknowledge the need for additional direct payments to Americans, though there is a lack of consensus still on who should receive additional aid and how much the checks should be. 

The White House continues to push for relief in the form of payroll tax cuts, a proposal that does not have a lot of support from Congressional Republicans. 

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