Melissa Medick, the owner of Beechnut Kennels, a pet day care and boarding business in Edgewater, Md., laid off in March seven of her 13 employees after revenue fell by 90%. When she received a $93,000 PPP loan in April, she offered all of her employees their jobs back, even though business remained slow.
Small Business News
“The program was structured to take advantage of existing banking relationships that favored established businesses,” John Arensmeyer, CEO of the advocacy group Small Business Majority, said about the deficiency. “It was not designed for very small businesses.”
“The program was structured to take advantage of existing banking relationships that favored established businesses,” said John Arensmeyer, the CEO of the advocacy group Small Business Majority. “It was not designed for very small businesses.”
When you think of small businesses, you may think of your local coffee shop or book store, and, it would appear, that Congress thinks the same thing. As a sole proprietor, I too am a small business owner, but the needs of businesses like mine weren’t considered in the federal stimulus packages even though we are struggling just like everyone else.
In that case, the official estimates of the number of jobs saved could be undercounted. But overall, estimates of how many jobs were saved will likely prove to be inflated because of the poor quality of the data, according to Hunter Railey, Colorado director of the Small Business Majority, an advocacy group for small businesses.
Small business owners Luisa Santos and Teresa Razo discuss how the coronavirus pandemic has impacted their stores on ‘America’s News HQ.’
Joining me on this episode is Xiomara Peña, California Program Director and National Entrepreneurship Director for Small Business Majority. We speak about how Latino small businesses have been surviving, best resources to use and what the recent boycott against Goya products (#GoyaBoycott) could mean for these businesses. Small Business Majority focuses on research, advocacy and education with the goal of building an inclusive economy that works for all, and specifically focused on serving minority populations.
“We applaud Congresswoman Finkenauer for introducing the COACH Act to help small childcare businesses during this difficult time. Childcare is an important industry for solo- and micro-business owners, particularly for those who are just starting out on their entrepreneurial journeys, and they need more resources and support in operating their businesses. This is particularly important now as the childcare sector has been hit hard by COVID-19. By providing industry-specific guidance for these business owners, we can ensure they are better positioned for success."
Jaja Chen, the co-owner of Waco Cha bubble tea shop in Waco, Texas, applied for an EIDL advance and loan on March 29 and was approved in June, but she still hasn’t received the money. A local SBA official told Chen’s company that the agency was having trouble processing direct deposit information.
Xiomara Peña, California program director for Small Business Majority, said the shutdown poses challenges for those who opened after taking significant financial steps and introducing new protocols for operating and cleaning. Some businesses had to submit plans to local authorities or apply for permits to put up new signs or outdoor operations.