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 October 8:
- Status of stimulus negotiations: Who knows?
- Weekly jobless claims worse than expected as hiring remains stalled
- 36,000 restaurants and small businesses on the brink of closure
Status of stimulus negotiations: Who knows?
“The only point about negotiations is, ain’t gonna be no stand-alone bill unless there’s a bigger bill, and it could be part of that or it could be in addition to that.”
Wall Street hit a 1-month high today after President Donald Trump signaled that stimulus negotiations are back on track. As usual, reality might be a bit more complicated.
After shutting down talks completely via Twitter earlier this week, the president announced his support for a targeted stimulus package that would include direct payments and aid for the airline industry. In response, Speaker of the House Nancy Pelosi rejected a standalone bill, reiterating that any money for the airline industry would have to be part of a bigger package. To which, Senate Majority Leader Mitch McConnell voiced his own confusion: “The discussion from day to day can be confusing for all of us to follow” followed by skepticism that any legislation would be passed before the November 3rd election.
Today, both President Trump and Speaker Pelosi announced that they are still negotiating on a broad economic relief package.
Meanwhile, millions of Americans remain in the lurch, wondering when their utilities will be shut off.
Weekly jobless claims worse than expected
“Some of these new layoffs are coming from firms that didn’t want or didn’t have to lay people off at first. [Now] they have no choice but to start reducing their workforce.”
New jobless claims topped 840,000 this week, coming in slightly higher than expected. In total, over 25 million people are claiming some sort of unemployment benefit, and economists worry that the economy is on the wrong trajectory as hiring continues to slow.
Even so, other economists wonder about the veracity of the unemployment tally, citing the flood of layoffs that overwhelmed state unemployment agencies that often result in overcounting of initial claims.
36,000 restaurants and small businesses on the brink of closure
“If Congress and the president walk away from negotiations, even more of our neighborhood restaurants will go out of business.”
Association groups for restaurants and small businesses are speaking out, warning government officials that as many as 36,000 restaurants and small businesses will permanently close this winter without additional support from the federal government.
According to the International Franchise Association, one in 20 businesses faces possible closure without assistance.