The Daily Rundown

SMB News Daily Rundown: Update for September 11

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

Man fills in Unemployment benefits application form.

Small Business News Highlights for September 11: 

  • 12 millions Americans still have not received unemployment benefits
  • SBOs report difficulty finding workers, despite economic downturn
  • California passes new laws to help struggling SBOs

Millions of Americans still waiting for unemployment benefits

“They tell me to just wait. My bills are all behind, my pantry is empty, my pockets and savings are dry [and] we’re about to lose internet — so the kids won’t even be able to do their online schooling.”

As economists continue to wring their hands over the latest data on new unemployment claims, approximately 12 million Americans who already filed for jobless benefits are still waiting for their payments. 

Six months into the pandemic, millions of laid-off workers have received only a fraction, if any, of the money they’re owed. While some states have higher rates of unpaid claims than others, officials point to outdated technology, understaffed offices, and the continuing high volume of claims.  

Small businesses struggle to find workers

“It is full-time, year-round work with benefits,” paying from $10 to $15 an hour. When restaurants were shut down and retail was shut down, we thought people would be flocking to jobs.”

Despite a national unemployment rate over 8%, some small business owners report that they’ve had significant difficulty hiring new employees during the pandemic

Lawn care, plumbing and maintenance, auto sales, and home health care are just a few of the types of businesses who say they’ve had to turn away customers due to ongoing recruiting and hiring challenges that lead to chronic staffing shortages.  

California passes new laws to help struggling SBOs

“Restaurants cannot sustain themselves or their employees when they operate with strict capacity limits, which means the state should long ago have crafted a comprehensive aid package to help these small businesses hibernate.”

Governor Gavin Newsom of California signed new bills into law earlier this week in an attempt to support the state’s ailing small businesses. 

The laws allow small businesses to exclude PPP loans from their gross income for state taxes, give small businesses with fewer than 100 employees tax credits for hiring new workers, and allocate over $230 million in stimulus money to jumpstart construction projects. 

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