Small businesses weigh their future, as economies begin to reopen. The economic pressures are magnified for small businesses, which account for 50% of total employment in the U.S. A recent study by Deutsche Bank found that one quarter of small businesses only had enough cash on hand to operate for one
The Strand Book Store in New York City has stood as a source of pride for the Bass family for 93 years. With its famous slogan “18 Miles of Books,” the Manhattan shop has weathered the Great Depression, survived 9-11, and gone to battle with Amazon — all without a single layoff.
More than two months later, the Strand is still in limbo: A little more certain about its next few months with loans secured through the government’s Paycheck Protection Program , but uncertain about its long term viability, given business lost from a sudden economic shock. Wyden’s concerns mirror those of small businesses across the country. As states lift stay-at-home restrictions allowing some stores to reopen, business owners are assessing the cost benefits of drastically reduced traffic with their ability to conduct limited activity.‘Teetering on the edge of bankruptcy’The economic pressures are magnified for small businesses, which account for 50% of total employment in the U.S.
“I think the PPP was misconceived. Many businesses are getting a windfall from it, where you know there are profits for their owners, but it won’t ultimately help their workers,” said Furman. “Many of the businesses getting those loans and effectively those grants would have continued anyway. And then if you're teetering on the edge of bankruptcy, just covering two months of payroll probably isn't enough for you and you still may go bankrupt.
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