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 28:
- Unemployment claims continue to fall
- SBA announces $10 billion for CDFIs to participate in PPP
- House pass changes to PPP
2.1 million Americans filed for unemployment last week
“The pace of flooding has declined, but the labor market is still underwater.”
Normally, 2.1 million Americans filing for unemployment benefits in a single week wouldn’t be news to celebrate, but we all know these are not normal times. The overall number of jobless claims since mid-March tops out just shy of 41 million.
Last week, the number of unemployment claims fell to 2.1 million, down from 2.4 million the previous week. Overall, the number of workers continuing to collect unemployment dropped from 25 million to 21 million.
SBA sets aside $10 billion for CDFIs
“CDFIs provide critically important capital and technical assistance to small businesses from rural, minority and other underserved communities, especially during this economically challenging time.”
The Small Business Administration announced today that it has set aside $10 billion from the second round of funding for the Paycheck Protection Program (PPP) to be lent to struggling small business owners exclusively through Community Development Financial Institutions (CDFIs). CDFIs work to help low-income communities by providing “access to financial products and services for local residents and businesses.” The PPP has been repeatedly criticized for not doing enough to support minority and urban business owners who do not have well-established relationships with financial institutions.
House votes to makes changes to the PPP
“What we think is there is a general consensus between both the House and Senate that the time frame that was set was too short. Unfortunately, we had hoped that this would be resolved sooner.”
The House of Representatives voted 417-1 today to make changes to the PPP that would give SBOs more time to spend the money received by the program.
The so-called “Paycheck Protection Program Flexibility Act” will extend the length of time from 8 weeks to 24 weeks, allowing more SBOs to meet the requirements to have their loan forgiven.
The Senate will need to pass the legislation in order for it to go into effect.