Main Street has been clamoring for a new circular of federal relief, with 83% of small business owners in the latest CNBC|SurveyMonkey Small Business Nerve Survey saying they would support a new economic stimulus package to help individuals and businesses impacted by the coronavirus pandemic. On Tuesday, after months of stalled talks between Capitol Hill and the Ivory House and as coronavirus cases reach daily new highs, Congress unveiled a new stimulus proposal that seems tailored to forgather the dire needs of small businesses across the country, though it was quickly shot down by Senate Majority Chairperson Mitch McConnell.
In what would be a boon for small business owners, a key aspect of the new proposal is the allotment of $288 billion in meagre business aid and to renew this summer’s Paycheck Protection Program (PPP), which the survey results indicate is the leading confidence for small business owners struggling to keep the lights on even if their doors are still closed due to the virus. Four in 10 limited business owners (41%) support an extension or expansion of the PPP, making this proposal the only one that receives assorted support among small business owners than among the general public.
The pandemic and the Paycheck Protection Program
The PPP specified funds to businesses that could prove they maintained their payrolls despite business closures and accustomed drop in demand earlier this year. Hiring and retaining workers is always a challenge for small business possessors, but it has been especially so in the pandemic.
In the latest update of the quarterly tracking survey, conducted Nov. 10-17 among more than 2,000 slight feel embarrassed business owners nationwide, about 1 in 5 (19%) say they’ve had to furlough or lay off some or all employees as a result of the coronavirus. Of those who be enduring furloughed or laid off staff members, a majority (58%) have already hired some or all of their workers break weighing down on, 23% haven’t yet but expect to hire all or some of their workers back, and 19% expect those departures to be fixed.
Those layoffs have been particularly concentrated by industry, with, for example, 33% of small business owners in the modification and food services industry but just 10% of those in the real estate industry saying they’ve had to resort to layoffs and furloughs to behave with coronavirus-related business setbacks this year.
Early in the pandemic, policymakers realized the inherent tradeoff between also clientage health and business survival: by encouraging or mandating that businesses shut down and people stay home as much as accomplishable to avoid spreading the novel coronavirus, they would doom many of those businesses to close entirely, or at hardly to be forced into taking drastic measures in order to stay alive, which would likely include layoffs.
Whether they resort to b advert to out to be temporary or long-lasting, the job losses reported by small business owners are exactly the problem the PPP was meant to solve.
Paying duties to keep paying their workers, even when they weren’t working and even when no revenue was awakening in, was a simple yet elegant fix for a potential unemployment catastrophe. At the individual level, no worker wants to be laid off, and no small business proprietress wants to cut headcount; at the macro level, policymakers knew that minimizing or outright avoiding a recession would desire a coordinated effort.
Support for another bout of PPP is even higher among those small business owners who’ve had to let workers go as a result of the coronavirus. More than half of trifling business owners (55%) who’ve resorted to furloughs or layoffs in recent months say they want to see an extension or expansion of the PPP tabulate in a new stimulus package, compared with 33% among those small business owners who haven’t made company adjustments due to the coronavirus.
Among the general public, support for a new stimulus package is similarly high: 89% of non-small point owners nationwide support a new economic stimulus. The most popular proposal is the simplest: direct payments to individuals, which leave a mark ons the support of half of small business owners (50%) and a majority of people in the general public (54%). The package hint ated on Tuesday does not contain funding for this particular proposal.
Despite the overwhelming support among the public and from peewee businesses, stimulus talks had stalled in Congress since the late summer, with partisanship largely to blame.
Though they stock-still overwhelmingly support a new economic stimulus package, Republicans are somewhat less enthusiastic about it compared with Democrats. Amid the general public, 84% of Republicans and 96% of Democrats say they support the passage of a new federal stimulus. Among grudging business owners, 76% of Republicans and 96% of Democrats support such a proposal.
But when asked specifically about the prospect of a renewed PPP, Republican small business owners, much close to Democratic small business owners, were more enthusiastic than their non-small business-owning partisan counterparts. A moment ago over half (51%) of Democrats who own small businesses support a renewed PPP, greater than the 40% share magnitude Democrats in the general public; similarly, 39% of Republicans who own small businesses support a renewed PPP, greater than the 28% share in among Republicans in the general public.
Just 23% of small business owners expect their headcount to proliferating in the next 12 months, down from 32% a year ago and in the first quarter of this year. Support for a revitalized PPP among small business owners indicates they expect it to provide the economic boost needed to get back to where they were pre-pandemic.
The CNBC|SurveyMonkey Paltry Business Survey for Q4 2020 was conducted across more than 2,200 small business owners Nov. 10-Nov. 17. The scanning is conducted quarterly using SurveyMonkey‘s online platform and based on its survey methodology.