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 September 3:
- Small business hiring plans reach pre-pandemic levels
- SBOs dip into personal savings to keep businesses open
- Senate Majority Leader indicates new COVID-19 stimulus package unlikely this fall
Small business hiring plans reach pre-pandemic levels
“The small business labor market is recovering and moving in the right direction. However, there is still uncertainty and many small businesses are counting on additional financial assistance.”
The National Federation of Independent Businesses is reporting that the largest percentage of U.S. small businesses since February is planning on adding workers to the payroll.
According to the NFIB, 21% of small firms in August were planning to create new jobs, which represents a 3% increase over the month before, and the fourth straight increase. Additionally, 33% of SBOs said they have open positions they were unable to fill immediately, the most since March. Of the businesses surveyed, 18% indicated that they raised compensation levels in August, up 3% since July.
SBOs dip into personal savings to keep businesses open
“I’m banking on the long-term outlook for the business. It might in the future potentially be sold. That in my mind is where we’d be making up some of that money.”
Now that government programs have ended and without any new relief in sight, many small business owners are now dipping into their personal savings and retirement funds in an effort to keep their business going through the ongoing economic turmoil and public health crisis.
While some financial advisers caution small business owners about robbing Peter to pay Paul, many SBOs believe that they have no choice and view using their savings as an investment in the business that will eventually pay off when they sell the business some day.
Congress may not pass new COVID stimulus package
“I don’t know if there will be another package in the next few weeks or not.”
Meanwhile, Senate Majority Leader Mitch McConnel has indicated that Congress might not pass new COVID-19 rescue legislation when they return from their month-long recess next week. His statement comes after Treasury Secretary Steve Mnuchin testified that certain sectors of the U.S. economy desperately need additional support to fully recover.
Meanwhile, the Congressional Budget Office announced the federal deficit is projected to top $3.3 trillion dollars.