Connect with us

Company

Give Americans a stimulus check by Christmas or small businesses will have an unhappy new year

Published

on


This holiday season will likely be different for families and small businesses across the U.S. Not only will family gatherings be smaller than in years past or canceled altogether, but the economic impacts of the COVID-19 recession will mean that for many families, spending on gifts is out of reach. A new Gallup poll found that without an additional stimulus check, Americans plan to spend less money over the holidays. 

This means there will be far fewer shoppers and diners at local shops and restaurants at a critical time of year. It’s not just gifts that many families won’t be able to afford. Almost half of all U.S. households have experienced serious financial trouble due to the coronavirus pandemic, leaving millions struggling to meet basic needs, including food, rent, and utility bills. 

With the holiday season being one of the most important times of the year for small businesses, less holiday spending will mean many neighborhood businesses could be forced to permanently shutter. Nationwide, hundreds of thousands of small businesses have already closed their doors for good. 

Unless Congress passes additional stimulus relief, more than one-in-three small businesses say they would be forced to close by the end of the year, according to a recent survey by Small Business Majority. The number is even higher for small business owners of color: an astounding 41% of Black- and Latino-owned businesses won’t make it through the next few months without additional financial support. As more small businesses close, even more people will be left without income and in urgent need of financial assistance. 

The CARES Act passed by Congress in March included one-time $1,200 stimulus payments to individuals, expanded unemployment benefits and loan support for small businesses, in addition to a number of other boosts for families and the economy. This short-term aid provided a lifeline for some small businesses over the summer. Meanwhile, the stimulus checks included in the law were a primary reason that poverty fell in the U.S. the early months of the recession, before going back up again as the money ran out. 

The checks also boosted the economy by increasing spending at all income levels,​ most significantly among low-income people. In rural communities, particularly those in the South, the checks directly increased small-business revenue. This is critical as nearly half of small businesses rank reduced consumer demand as the top issue for their business right now. 

It’s not too late to turn things around. Congress should pass a robust stimulus bill that sends checks to individuals now to help keep families afloat this holiday season — putting cash into the pockets of those who need it most and boost spending. 

To help small businesses, especially the smallest and neediest, this stimulus bill should provide comprehensive assistance including relaunching and improving the Paycheck Protection Program (PPP) by allowing true small businesses to apply for a second loan, prioritizing small businesses owned by people of color and women who were shut out of the first round of PPP funding, and automatically forgiving loans under $150,000.

With COVID cases surging across the country, some small businesses will be stuck with the impossible decision of whether to close temporarily to protect the health of their employees and customers, or to stay open because they have to make ends meet. Stimulus payments, in addition to broader small business assistance, will enable business owners to make the best decision for themselves and the broader community about whether to remain open, rather than being forced to because of dire economic circumstances. 

In addition to being good policy, stimulus checks are also good politics. A recent poll by Lake Research found that 77% of voters, including majorities of Democrats and Republicans, support another one-time payment, and 61% support ongoing cash payments until the crisis is over. 

Now is the time for bold solutions. This holiday season, Congress must quickly pass a robust stimulus that includes access to loans and grants for the neediest businesses and direct checks to individuals to promote a sustained and racially equitable recovery that helps families and small businesses get back on their feet. 

Natalie Foster is president of Economic Security Project and David Chase is vice-president of national outreach for Small Business Majority.

More: Should the Biden administration cancel student debt? Read this before you decide

Plus: Small businesses need a new bailout. How to do it right this time



Source link

Continue Reading
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Company

These money and investing tips are timed for a bull market that looks short on time

Published

on

By


Don’t miss these top money and investing features:

These money and investing stories, popular with MarketWatch readers over the past week, can help you prepare your portfolio as stock buyers become more skittish and financial markets grapple with a less-friendly Federal Reserve — which savvy investors know not to fight.

Sign up here to get MarketWatch’s best mutual funds and ETF stories emailed to you weekly!

INVESTING NEWS & TRENDS
Odds favor the Dow being higher at the end of 2021 and 125 years of history supports this

Second half of the year tends to be strong for U.S. stocks.
Odds favor the Dow being higher at the end of 2021 and 125 years of history supports this

Why a crash in meme stocks AMC and GameStop looks more likely now

Heavy insider selling is a warning sign that a stock’s price is inflated.
Why a crash in meme stocks AMC and GameStop looks more likely now

What lumber and gold prices tell us about the stock market’s next move

Commodities have an effect on stocks but the one to watch is platinum.
What lumber and gold prices tell us about the stock market’s next move

5 smart ways to shift your investments as the Fed gets ready for a big move

Be careful with meme stocks and bitcoin.
5 smart ways to shift your investments as the Fed gets ready for a big move

The real culprit for the selloff in the stock market? It wasn’t the Fed

The Federal Reserve was just the spark; the tinder was the excessive bullishness of market-timing traders
The real culprit for the selloff in the stock market? It wasn’t the Fed

Buybacks may prop stock market rattled after Fed meeting

‘It’s a way to look like they’re earning more than they actually are,’ says one analyst about companies doing buybacks.
Buybacks may prop stock market rattled after Fed meeting

Buy these 6 types of stocks next as Big Tech falters and inflation falls, says Swiss bank UBS

The group at the Swiss bank identifies two major trends ahead.
Buy these 6 types of stocks next as Big Tech falters and inflation falls, says Swiss bank UBS

To Roth or not to Roth? Part II

Further discussion of research that challenges the conventional wisdom.
To Roth or not to Roth? Part II

If the SEC OKs bitcoin ETFs, it would be encouraging the most obvious speculative bubble in modern times

Crypto doesn’t belong in your IRA or 401(k).
If the SEC OKs bitcoin ETFs, it would be encouraging the most obvious speculative bubble in modern times

The road to regulating crypto

SEC Commissioner Hester Peirce on how the U.S. government can effectively approach regulating bitcoin and other cryptocurrencies. The views expressed by Peirce are her own views, not necessarily those of the SEC or her fellow commissioners.
The road to regulating crypto

What are the Dow, S&P 500, and Nasdaq? | How to Invest

The Dow Jones Industrial Average, S&P 500 and Nasdaq Composite are indexes that measure the performance of the stock market. Here’s how each is used and what insights they provide for investors.
What are the Dow, S&P 500, and Nasdaq? | How to Invest

Why women investors are like Warren Buffett

Rupal Bhansali, chief investment officer of Ariel Investments, explains at the WSJ Women In Series why women investors trade more conservatively and how that is a good thing.
Why women investors are like Warren Buffett



Source link

Continue Reading

Company

These money and investing tips can help you with stock and bond strategies to whip inflation

Published

on

By


Don’t miss these top money and investing features:

These money and investing stories, popular with MarketWatch readers over the past week, can help you prepare your portfolio for a period of higher inflation — transitory or not.

Sign up here to get MarketWatch’s best mutual funds and ETF stories emailed to you weekly!



Source link

Continue Reading

Company

These money and investing tips can shine some light through the stock market’s ‘June gloom’

Published

on

By


Don’t miss these top money and investing features:

These money and investing stories, popular with MarketWatch readers over the past week, can help your decision-making if the market outlook becomes cloudier and momentum starts to fade — even as the outlook for the post-pandemic economy gets clearer.

Sign up here to get MarketWatch’s best mutual funds and ETF stories emailed to you weekly!



Source link

Continue Reading

Trending