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SMB News Daily Rundown: Update for October 7

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Small Business News Highlights for October 7: 

  • President Trump reverses course, calls for more direct payments, PPP money
  • SBOs in “hotspot” areas fear for survival amidst talks of more shutdowns 
  • How to survive the pandemic? Everyone needs to work less 

After breaking off talks with Congress, Trump now wants stimulus check legislation

“All he has ever wanted in the negotiation was to send out a check with his name printed on it. Forget about the virus, forget about our heroes, forget about our children and their need to go to school safely and the rest.”

In an abrupt about-face, President Trump is now calling on Congress to pass a standalone economic aid package that would provide funds for another round of direct payments to Americans and help bail out the airline industry. He has also indicated that he would like Congress to provide another $135 billion for the beleaguered Paycheck Protection Program.

The president’s reversal on further economic aid comes as the Federal Reserve released minutes from their mid-September meeting that indicate that Fed officials believe the economy’s recovery will falter without additional aid from the federal government. 

Non-essential New York City businesses may re-close due to uptick in COVID cases

“We’re kind of just waiting on that shoe to drop basically.”

Small business owners in the Big Apple are concerned that Mayor de Blasio’s proposal to close non-essential businesses in parts of the city for 2 to 4 weeks will wipe them out entirely. 

An uptick in the number of COVID-19 cases within specific zip codes in New York City is behind the proposal. The proposal is subject to approval by the Governor Andrew Cuomo, who has so far rejected the measure, claiming that using zip codes to identify hotspots is an imprecise way to curb the disease. 

So far, New York City has seen more residents leave during the pandemic than any other state. 

How to survive the pandemic? Everyone needs to work less 

“Forget your ambitious growth plans and all those financial goals. The only goal you need to have until life goes back to normal is to make as much money as it takes to keep your business afloat. This is not the time for high expectations. This is the time to keep your company’s head just above water.”

For employers struggling to support working parents and employees without children alike throughout the pandemic, the solution is simple: expect less. 

According to this article, the only way “parents and their child-free co-workers can survive this pandemic is for bosses to acknowledge reality, lower their goals, and do their part.”

This means that employers should stop expecting to grow or expand during the COVID-19 public health crisis, and focus on bringing in enough revenue to keep the company afloat while encouraging employees to take care of themselves and their families. 

Sound naive?

As the author says, “I know this sounds naïve. Telling businesses not to maximize profits is practically unpatriotic! But a growing cohort of economists and academics argue that making such a move is not only the right thing to do ethically, but is in fact a canny long-term strategic decision, one that can set a company up to bounce back more quickly during the inevitable economic rebound.”

“And as the CEO of B Lab, the organization that certifies companies that agree to meet high standards of social and environmental benefit as B Corps, argues: ‘I think it’s totally reasonable, and I think it’s absolutely true. We should expect businesses to look out for their workforce, who are their greatest asset — not just in the midst of a pandemic, but all the time. They should make sure people have balance and can look out for their families. Those are the purposes of a job in the first place.'”

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