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 26:
- 14 straight weeks of 1 million plus unemployment claims
- Pivoting is critical to small business survival
- $38.5 billion in PPP loans cancelled
Nearly 1.5 million workers for unemployment last week
“Now those places probably aren’t going to reopen so they probably tossed out the applications.”
The U.S. recorded its 14th straight week of a million or more new jobless claims as nearly 1.5 million workers filed their initial unemployment claim last week. After adjustments, the total number of unemployment claims came in around 19.5 million, down from nearly 25 million claims filed at the beginning of May.
Ongoing concerns about new hotspots and the decision of some states to halt the reopening process has thrown the labor market into chaos. Workers who applied for jobs last week are being told that the businesses aren’t opening after all.
As the federally-funded unemployment payments of $600 per week are set to expire at the end of July, research from the Federal Reserve indicates that people receiving unemployment benefits are more likely to look for jobs.
Pivoting is critical for SMB survival
“I could see global travel was impacted. It was the unknown, and the unknown is never good for bars and restaurants.”
Adapting to new circumstances and quickly pivoting their business model are hallmark traits of small businesses that have weathered the COVID-19 pandemic. For an in-depth look at how small business owners have shepherded their business through the turmoil of the past months, check out the stories of these SBOs who have successfully transitioned their operational model.
$38.5 billion in PPP loans cancelled
“The SBA hasn’t provided a detailed accounting of whether the Paycheck Protection Program loans were canceled because of returns, duplicates or other reasons.”
Government officials have indicated that more than $38 billion worth of federal COVID-19 relief loans have been cancelled. A report from the Government Accountability Office found that over 170,000 loans had been cancelled and that approximately $128 billion still remains in the program’s accounts.
While the breakdown of reasons behind the cancellations is not available, many small businesses indicate that they are considering returning the loan money because of concerns over repayment.