When economic conditions are changing rapidly, data collected in the course of administering government programs can provide valuable information about recent developments. Timely data about economic conditions during the coronavirus pandemic have been provided by initial unemployment insurance claims and applications related to new businesses. These administrative data reveal severe economic disruptions in recent weeks.
The poll, conducted by Chesapeake Beach Consulting for Small Business Majority, surveyed California small business owners between April 7 and 10, 2020. The survey sheds light on a shocking rate of business closures, as well as small business owners’ views on proposals that can help ensure they are able to reopen and recover once the crisis is over.
The results of the survey raise several important considerations in the current environment: most firms are ill-prepared for a sustained period of revenue loss; firms’ reliance on personal funds could mean severe repercussions for those individuals and households in the event of failure; and many small businesses do not rely on traditional banks for credit, and, therefore, any program designed to support them should take that into consideration.
The Coronavirus Aid, Relief, and Economic Security (CARES) Act was signed into law on March 27, 2020 and provides the largest amount of fiscal relief to date – approximately $2 trillion. The CARES Act includes one-time cash rebates for low- and middle-income households; additional support for unemployment benefits; loans for small businesses; direct funding for states, local governments, and tribal communities; funds changes to food assistance in the Families First legislation; an array of additional health care supports; and some additional support for human services, housing and homelessness, and student debt relief. While this analysis will focus on the relief and assistance summarized above, the CARES Act also includes $500 billion in loans and other investment for businesses and a series of tax provisions that primarily will primarily benefit large corporations and higher-income households.
CDFI Friendly America: A White Paper Introducing the CDFI Friendly Strategy for Smaller Cities and Towns By Mark A. Pinsky & Adina Abramowitz First posted March 2020 The purpose of this White Paper is to introduce a new way for America’s small cities and towns to attract flexible, affordable financing to address gaps in markets
U.S. banks play an integral role as credit suppliers to small businesses. Small businesses comprise of nearly all employer firms in the economy and employ 47.3 percent of the private sector workforce (SBA Advocacy, 2019). The existence and performance of these vibrant businesses depend on how banks and other financial intermediaries are responding to their credit needs. This report uses publicly available data on U.S. banks to analyze the patterns in small business lending.
Thumbtack released results of its first survey of small business owners in the 2020 presidential election. The data captures sentiment and preferences from over 400 individuals in Iowa, New Hampshire, Nevada, and South Carolina.
As we begin 2020 focused on major program growth, we’re proud to offer these highlights of CalSavers’ historic first year of active participation. In 2019, we saw our first pilot saver contributions on January 2 nd; welcomed our new board chair State Treasurer Fiona Ma on January 7th; fully launched the program statewide on July 1st; supported our early savers in amassing $1.4 million; and made many program enhancements along the way.
As this year’s report findings and policy recommendations demonstrate, we have made significant strides in advancing a new generation of women entrepreneurs. However, much work still lies ahead. In 2020, we will build on the efforts of this past year, with a laser focus on our three main policy priorities—Access to Capital and Opportunity, Women in STEM, and Rural Women’s Entrepreneurship. As a Council, we remain dedicated to furthering our mission.
Rural economic development strategies need to adjust to these new trends to include a place-based approach to rural economic development that will foster a healthy ecosystem for the creation and growth of small businesses.
This toolkit describes the elements of a healthy ecosystem. The introduction flushes out why a new economic development tool is needed and briefly describes the elements. The five subsequent chapters explore more in-depth the five elements that make up a strong ecosystem.