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 June 2:
- Vandalism deals blow to small businesses struggling to regain footing
- Significant portion of PPP second round funds still untapped
- Tips for building a crisis management plan
Small businesses picking up the pieces
“In normal times, businesses would probably take it in their stride. But coming off the back of the pandemic, it’s devastating.”
Across America, small businesses are picking up the pieces after violence and vandalism erupted alongside peaceful protests against the death of Minneapolis resident George Floyd last week, only days after many SBOs resumed operations due to the COVID-19 public health crisis.
While many business owners have voiced support for protesters, others note that the violence has impacted both white and minority-owned businesses and question how destroying black businesses supports the cause of justice and racial equality.
In addition to filing insurance claims to help mitigate the damage, SBOs have found community members willing to help with clean-up efforts and even lend financial support. Others have encouraged people to support local black-owned businesses as a means of solidarity.
PPP money still available
“There is no doubt in my mind that PPP restrictions have dampened demand.”
Despite recent Congressional action to amend the terms of loan forgiveness for the Paycheck Protection Program (PPP), a large portion of funds from the second round are still available to small business owners. During the first round of funding, the Small Business Administration and partner lenders processed over 14 years worth of loan applications in 2 weeks, quickly running out of money.
Today, approximately $130 billion is still available and the average loan amount has fallen to $114,000. A technical problem with the SBA website caused many SBOs to have their loan money disbursed multiple times.
Do you have a crisis management plan?
“The health of your company can be disrupted in many ways, including reputation issues, negative financial impacts, employee harm, and damages to operations. To put it simply, you need a crisis management plan.”
If the past 3 months have taught us anything, it’s that a crisis management plan is never a bad idea. And though the COVID-19 public health crisis and the current political protests bring different issues and operational vulnerabilities into the forefront, both highlight the need to be prepared for any number of types of disruptions and contingencies.