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 May 21:
- More than half of small businesses want PPP loans forgiven as Senate looks at loan forgiveness requirements
- SBOs banding together in creative ways to weather the storm
- NYC SBOs indicate they will reopen regardless of government guidelines
SBOs expect PPP loan forgiveness, Senate eyes new deal to extend spending window
“A one-size-fits-all PPP program does not work — things have changed tremendously since the design of the program in early to mid-March.”
According to a recent survey, over half of all SBOs who received funds from the PPP hope that the total amount of the loan will be forgiven and 27% expect that up to three-quarters of their loan amount will be forgiven.
Today the Senate is taking up the issue of changing the requirements for loan forgiveness for the program, allowing businesses more time to spend the money they received without penalty. According to Secretary of the Treasury Steve Mnuchin, “One of the things we’re working with Congress on, and there is bipartisan support, is lengthening the 8-week period. I know the restaurants had asked for 24 weeks. But that’s something we definitely want to fix. It doesn’t cost us any more money and there is bipartisan support.”
Small businesses band together to weather COVID-19
“One of the things about a crisis is that it does bring out creativity and ingenuity and typically, collaboration and incredible generosity.”
In some cases, scarce resources lead to fierce competition. But when it comes to surviving the pandemic, some small business owners have decided that they have a better chance if they band together. In New York City, groups of restaurant owners have joined together to create promotional deals that encourage people to buy food from local establishments.
In other places, retailers have joined together to create subscription services or to promote visibility for struggling establishments or help support out-of-work service industry workers.
“The risk is that they’ve spent more money on this program than anyone has ever spent on a small-business program in world history, but haven’t changed the trajectory of permanent small-business closures.”
Some NYC businesses plan to reopen, regardless of permission
“We have to do it intelligently, take it step by step, but it has to be done.”
For a contingent of small business owners in New York City, it’s time to reopen regardless of what the governor or mayor says.
A coalition of over 300 city business owners is calling on state and local officials to let them reopen, citing that fact that many big box stores have been allowed to stay open and sell similar products as their smaller counterparts who were forced to shut down in an effort to flatten the curve.