NFIB Weekly News

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NFIB Weekly News Leading the News

Treasury Makes It Easier For Small Businesses To Avoid Needing To Repay PPP Loans (05/19/2020)

The New York Times (5/15, Flitter) reported the Treasury Department on Friday “made it slightly easier for small-business owners to avoid having to repay government-backed loans they took out under a program designed to keep them from laying off employees and permanently closing.” While the terms seemed to loosen a requirement that companies “rehire a certain percentage of their employees in order to obtain forgiveness,” they did not eliminate “a requirement that many business found onerous: At least three-quarters of the money must be spent on payroll expenses and the rest on rent and utility bills.”

Business Climate

US Consumer Prices See Largest Decline Since 2008 (05/19/2020)

Reuters (5/12, Mutikani) reported, “US consumer prices dropped by the most since the Great Recession in April, weighed down by a plunge in demand for gasoline and services including airline travel as Americans stayed home during the coronavirus crisis.” The Labor Department report also “showed a record decrease in underlying prices last month, raising the specter of a bout of deflation as the economy sinks deeper into a recession.” USA Today (5/12, Davidson) warned that “low prices don’t do much good if consumers aren’t spending. What’s more, deflation is not good for the economy,” as “it prompts people to put off purchases on the expectation that prices will fall further, hurting economic growth.”

Small Business Marketing

Small Businesses Switch From Big Banks To PayPal For SBA Loans (05/19/2020)

Bloomberg (5/12) reported, “as millions of entrepreneurs adapt to survive the coronavirus pandemic, many are ending their relationships with major banks that can’t keep pace with more nimble upstarts.” In the first few weeks of the Small Business Administration’s Paycheck Protection Program, “giants such as Wells Fargo & Co. and Bank of America Corp. lagged behind in handling applications, leaving desperate applicants to explore alternate sources of financial help. Some found it.”

Wages and Benefits

Additional 3M Americans Applied For Unemployment Last Week (05/19/2020)

The AP (5/14, Rugaber) reported that the Labor Department revealed last Thursday that “nearly 3 million laid-off workers applied for U.S. unemployment benefits last week as the viral outbreak led more companies to slash jobs even though most states have begun to let some businesses reopen under certain restrictions.” The AP said “roughly 36 million people have now filed for jobless aid in the two months since the coronavirus first forced millions of businesses to close their doors and shrink their workforces.” The AP said that “an additional 842,000 people applied for aid last week through a separate federal program set up for the self-employed and gig workers.”