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 25:
- Texas pauses reopening amidst serious spike in COVID-19 infections
- Government Accountability Office calls for investigation of SBA
- Cities paying remote workers to relocate
As hospitalizations rise, Texas hits pause on reopening
“The last thing we want to do as a state is go backwards and close down businesses. This temporary pause will help our state corral the spread until we can safely enter the next phase of opening our state for business.”
Texas businesses that had hoped to reopen in the near future have to put their plans on hold. The governor of Texas has announced that the Lone Star State is pausing their reopening as hospitalizations for COVID-19 rise.
Businesses that already reopened at reduced capacity in May will be allowed to continue operating, although the governor has recommended that people stay home except for essential functions and emergencies. Hospitals are also being told to cancel elective procedures.
GOA calls for SBA oversight, points to PPP fraud
“Because of the number of loans approved, the speed with which they were processed, and the limited safeguards, there is a significant risk that some fraudulent or inflated applications were approved.”
The Government Accountability Office has released a report calling for a greater measure of oversight for the Small Business Administration and its COVID-19 economic rescue programs.
The GAO’s report highlights the Trump Administration’s refusal to share information and data about the program and says that the Paycheck Protection Program was likely highly susceptible to fraud and misuse of federal funds.
Cities paying remote workers to relocate
“They’re being paid by a company elsewhere, typically a fairly large salary, and able to buy a house in our region.”
As more companies are moving to make their remote workforce permanent, cities across the country are marketing themselves to remote workers.
For instance, Tulsa, Oklahoma started a program that awards $10,000 grants to tech industry workers willing to locate. The program requires an extensive application process, as the city wants to ensure that new residents will make positive contributions to the city, beyond buying up affordable real estate.