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 7:
- Unemployment claims hit 33 million
- EEOC suspends data collection in 2020
- SBA limits loan size and closes portal to new applicants
- SBOs continue to wait for money promised by PPP lenders
3.2 million Americans filed for unemployment last week
“The initial claims count has now moved down in 5 straight weeks, suggesting that the number of layoffs has been declining lately following the surge that took place late in March.”
Another 3.2 million Americans filed for unemployment last week, bringing the number of jobless claims over the past 7 weeks up to 33 million. If you have trouble wrapping your mind around that number, it equals about 1 in 5 workers in this country.
Economists are hopeful that the trend is leveling off however, and that businesses will begin rehiring in June as states reopen in the coming weeks, even as white collar job losses continue to spike and states worry about funding their unemployment coffers.
EEOC will suspend collection of EEO-1 information
“Delaying the collections until 2021 will ensure that EEO filers are better positioned to provide accurate, valid and reliable data in a timely manner.”
The Equal Employment Opportunity Commission (EEOC) announced today that they will suspend the collection of EEO-1 Component 1 information for the rest of 2020 due to the COVID-19 public health crisis. Typically, EEO-1 Component 1 includes information about employees sorted into job type, race, ethnicity and gender.
Under federal law, businesses with 100 or more employees and federal contractors with 50 or more employees and contracts worth $50,000 or more must file the EEO-1 form each year.
SBA limits loan amounts, SBOs waiting for funding
“It is imperative that those small businesses who have already submitted paperwork receive this assistance quickly.”
The Small Business Administration’s emergency disaster loan program has been forced to change its lending parameters in response to funding shortages and the huge volume of applicants. Originally capped at $2 million, the loan program has had to limit applications to $150,000 and close the program to all small businesses beyond those in the agricultural sector.
Thousands of SBOs who believe they were approved for Paycheck Protection Program (PPP) loans are still waiting for the money to hit their bank accounts, while businesses that have already received funds from the PPP worry about paying back the money.
For an interesting look at where the hundreds of billions of dollars worth of loan money went, check out this map.