“Virtually every small business borrower believes that this will be forgiven,” said Paul Merski, a lobbyist for the Independent Community Bankers of America. “They took it out assuming that it would be a grant but it’s not — you have to abide by very complex rules and regulations on how this is spent.”
Small Business News
Nine in ten small companies say the coronavirus has affected their business, with 43% reporting it has had a severely negative impact. That’s according to Small Business Majority, a San Francisco-based small business advocacy organization. The study of 500 companies, conducted by Chesapeake Consulting in April, also found that 41% report their revenues have declined by more than 50% since the COVID-19 crisis began. One in three small businesses have closed.
Survival Strategies, From Shutdown to Reopening: This week’s guests on the War Room will be John Arensmeyer, founder of Small Business Majority, an advocacy group for business owners; and Gene Marks, a small business advocate who is founder of the Marks Group, a consulting firm that helps businesses with their technology issues. Both John and Gene have devoted countless hours to helping businesses navigate the crisis. We’ll talk rescue loans, technology, reopening, and we’ll take your questions. Thursday at 3 PM ET: REGISTER HERE
Reps. Madeleine Dean (D., Pa.) and Derek Kilmer (D., Wash.) support direct cash payments to very small businesses, and have introduced a companion measure to Mr. Wyden’s in the House. The Small Business Majority, an advocacy group, also favors direct cash grants.
Amid the current stay-at-home advisory, small businesses across the country are getting walloped by the coronavirus outbreak. According to a poll conducted on behalf of the Small Business Majority in mid-April, 72 percent of small businesses across the country have reduced their payroll, and 40 percent have permanently laid off employees.
Boice is trying to avoid the dire projections that came out of a study by the advocacy group, Small Business Majority, which found 44% of small businesses have already closed or will likely do so in the next two months.
In California, Urrutia says, 70% of restaurants might not reopen. As many as half of personal service businesses like nail salons and barbershops may remain shuttered. A poll conducted this month by the Small Business Majority advocacy group found that 44% of small-business owners, most of whom employed fewer than 25 people, either have closed their operations or expect to in the next two months.
Many borrowers are turning to Reddit’s small-business threads to learn how others navigated the PPP and the EIDL program. Samantha Safer, owner of Otway, a 49-seat neighborhood restaurant in Brooklyn, N.Y., that employed 16 people before the pandemic, learned that many who’ve received EIDL grant money didn’t hear from the SBA but did notice their personal credit report had been pulled shortly after the funds were deposited in their bank accounts. (Read this Credit Karma explainer on hard and soft credit inquiries.) Safer didn’t get PPP and never heard back about her EIDL application.
Xiomara Peña, directora del programa nacional de emprendimiento latino, del Small Business Majority, con sede en Los Ángeles, California, en base a sondeos de opinión explicó los efectos de la pandemia en los pequeños negocios y los pormenores del PPP.
Congress voted to add additional funds to the Paycheck Protection Program (PPP) and the Economic Damage Disaster Loan. But the bill failed to support lenders that provide capital to Latino small businesses and other “underbanked” communities. This is not good news for California’s small businesses, many of who are closing or about to close during the Covid-19 crisis and received the fewest PPP loans in the entire country. How are they regrouping?