economy Markets

More Than Half Of America’s Small Businesses May Be Gone By The Election. Literally.

...teetering precariously on the precipice of oblivion.

Another day, another survey suggesting Main Street is teetering precariously on the precipice of oblivion. According to the Society for Human Resource Management, more than half of America's small businesses will exhaust their capacity to keep going by the end of October. The study polled 375 firms between April 15 and April 21. 12% said they can last "up to one month", while a full 20% said they can make it more than 30 days, but may be out of business within three months. Just 34% expressed confidence in their own viability past six months. Business owners are generally divided about the adequacy of the policy response from local and federal governments. Slightly more respondents disagreed with the notion that Washington has done enough. In other words, business owners have a marginally more favorable view of their own state's response to the crisis. Disconcertingly for the White House, more than 20% of those surveyed were unfamiliar with the Paycheck Protection Program. The breakdown betrays a stark divergence. 84% of businesses with 100-500 employees were familiar with PPP, but only 60% of small business owners with 2-99 employers had heard of the government's flagship
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7 comments on “More Than Half Of America’s Small Businesses May Be Gone By The Election. Literally.

  1. Who are these people who are running small businesses but apparently have little or no idea what is going in the world? I mean, really, people, you need to have a clue.

  2. I applied for one. Trust me, it is not so easy. Just finding a lender who would take the application was tough. The big banks did not want to deal with small borrowers. The first round was almost impossible to apply for unless you had an inside connection at the bank. As I never borrowed before with my lender, I was at the back of the line. I finally found a fintech lender who was set up to accept an application from a small firm with a 1099 schedule C but had to put in the paperwork twice as their system did not seem to take it the first time.

    • Sorry to hear that. Implementation, especially with respect to round one, was pretty dismal. But this — “only 60% of small business owners with 2-99 employers had heard of the government’s flagship rescue program” — is…disturbing.

      • Anonymous

        Most people in the world don’t have a clue about most things in life, important or not. This is not surprising at all.

      • Besides, if you run an actual small business, unless you have taken great pains to get connected to the financial world you don’t get much attention. If you use Square and Quick Books you might have gotten an alert, but that’s a guess. There’s really no money to be made for a bank in a “relationship” with a business that employs 10 or 20 people. In today’s ZIRP world even a nice checking account offers the bank little in the way of earnings. You are probably too risky for the bank to make you a loan so they are just not set up very well for folks like this. No contact, no benefits. Iif they are still even open these guys aren’t sitting around listening to Trump and his “team” of folks who, in truth, have no use for the “little people.” If these small firms are still open they are too busy to be keeping up with news that actually has no actionable content. I ran a small business support center for several years and it’s not just those folks who have no clue, it’s also their critics.

  3. H-Man, the little guys are always at the back of the train. But the little guys drive the train. If we don’t have the little guys, that train is going to derail.

  4. RepubliCons do not care a whit about small business.

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