The Daily Rundown

SMB News Daily Rundown: Update for October 19

Welcome to the Small Business Rundown. Each day, we bring you stories that impact small business owners and their workforce.

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Small Business News Highlights for October 19: 

  • Speaker Pelosi gives Tuesday deadline for stimulus negotiations
  • Jobless Americans have drained their savings
  • 45 facts about small businesses

Stimulus negotiations deadline

“These changes make the funding a slush fund for the Administration which ‘may’ grant or withhold rather than a prescribed, funded plan to crush the virus.”

On Sunday, Speaker of the House Nancy Pelosi issued a Tuesday deadline for reaching an agreement on economic stimulus legislation.  Despite negotiating throughout the weekend, the White House and Congress appear to remain at an impasse.

With 15 days until the election, both parties agree on the need for more direct cash payment and extended unemployment benefits. They continue to disagree, however, on other key issues such as assistance to state and local governments and Coronavirus testing.

President Donald Trump has said he’s ready to sign a stimulus package, though Secretary Mnuchin has not budged from his $1.8 trillion offer, while Speaker Pelosi remains firm that the price tag should be $2.2 trillion.

Drained savings

“The August spending decline among jobless workers shows no signs of having plateaued, suggesting that that in future months, in the absence of additional government support, spending among the unemployed could likely decline below August levels.”

Any savings that unemployed Americans amassed during the period of enhanced jobless benefits are almost gone, if not already depleted, according to a new study.

The report found that unemployed people spent 2/3 of their savings during the month of August and that the lack of further economic support will translate to a significant drop in consumer spending in the months ahead.

Small business facts

“But as dreamy as business ownership can seem, it takes a lot of grit, hard work, and old-fashioned luck to find success. Recent data shows that fewer than 80% of businesses make it beyond their first year, while only around half survive for at least five years or more.”

Need some facts to spice up the conversation at your next Zoom happy hour? You could casually mention that Montana, Wyoming, and Vermont have the highest rates of small business employment. Or note that only 30% of small businesses are successfully passed to the second generation. Find these small business stats — and many more — here.

Or casually mention that an asteroid could hit the Earth before election day.

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