Get Set For Another PPP Round & 4 More Small Business News Stories You Need To Know
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Welcome to another week of Merchant Maverick’s essential news roundup for small business owners.
Congress is still working on additional stimulus funding and small businesses should get ready to tackle another round of the Paycheck Protection Program with their CPAs and advisors. FedEx is under fire for putting shipping limits on small businesses this holiday season. And a new survey shows that the initial round of PPP loans provided substantial but short-lived help across the country for struggling businesses. Read on through for this week’s top four must-know stories for small business owners.
December 22, 2020 – Congress has passed a new funding bill to revive the Paycheck Protection Program (PPP) and Economic Injury Disaster Loan (EIDL) program. Learn more about the legislation and its impact in our newest article.
Table of Contents
Another PPP Round Could Open Soon
Congress is set to vote on a second round of stimulus for small businesses which could include up to $300 billion earmarked for the PPP and EIDL loan programs. The vote could come any day, though there are still some partisan hold-ups. However, as soon as the vote goes through and the funding opens, businesses need to be ready.
According to Erik Asgeirsson, president and CEO of the American Institute of CPAs:
We are encouraging the 44,000 CPA firms affiliated with the AICPA to start identifying clients who will meet the proposed criteria for the next round of PPP. As part of that, they should being the process of gathering key information, such as 2020 revenue. It’s also important for firms to put in place processes and PPP platform capabilities. Firms have a great opportunity to be much more proactive and strategic on how they support clients with this stimulus compared to the original PPP round in April.
With many small businesses still struggling and more shut-down orders across the country on the horizon, relief is desperately needed. This new round will have some changes from the round last spring.
Why this matters to you: Small businesses that have a CPA should reach out and contact an advisor to discuss a plan-of-attack for another set of PPP loans. Keep on the lookout for news alerts about the vote from Congress, and get your documents and paperwork ready beforehand. Further reading: Expect A Mostly Better PPP In The Next Round of Stimulus, Inc. Some small businesses are facing shipping limits as low as 75 packages per day, according to a report on Business Insider. The carriers are overwhelmed thanks to the combined pandemic and holiday surges. UPS and Amazon have also put shipping limits on businesses due to the overwhelming need for deliveries from online shopping. Amazon’s restrictions only affected third-party sellers, which includes many small businesses. While shipping limits are nothing new, the continuing pressures of 2020 have amounted to unprecedented shipping levels. (The pressure for businesses to offer fast/free shipping is also a factor.) Another reason for the slowdown? FedEx is on the front lines of vaccine delivery and is dedicating some of its freight ability solely for that. In a statement to Business Insider, FedEx spokesperson Janna Hughes said: FedEx expected an unprecedented surge in packages during this season, and we implemented various measures proactively to prepare… In some cases, volume has significantly exceeded customer projections. We know how important it is to our customers that their packages are delivered on time, and we remain committed to working with them on ways to leverage our network flexibility. Why this matters to you: Expect delays and possibly stricter shipping limits as we get even closer to the holidays. As more shutdowns loom, anticipate shipping times and limits to remain stretched into 2021. A Biz2Credit study showed that “government lending programs restored sufficient capital for businesses to weather the effects of the pandemic for a short period, but that many firms are currently operating at a monthly loss.” Their prediction is that 30% of small businesses will close for good by the end of 2020. Other key takeaways from their study were: Why this matters to you: It’s interesting to compare numbers and stories around the small business world and to see the data regarding running a business in 2020. We will not understand the economic impact for years as a third of all businesses are set to close permanently. As the Covid-19 vaccine becomes available, businesses are wrestling with their options for requiring/offering the vaccine to their employees. Can businesses make taking the vaccine a condition of employment? According to an article in Reuters, “Options are being studied by businesses hoping to bring at-home employees back without triggering a backlash or violating federal and state employment law. Companies are consulting with lawyers, health care experts and polling their workers to gauge when to offer carrots and when to use a stick.” One of the problems is that according to Pew Research, 21% of Americans are firmly opposed to taking the vaccine. If businesses cannot make it mandatory (the option is available to privately held companies only), many are looking into offering incentives. That alone may not be enough to change people’s minds about the vaccine. Restaurants, businesses that have been the hardest hit by COVID, will likely want to encourage or pay for their employees to get the vaccine. Uber has also promised to help vaccinate their drivers. Why this matters to you: As the vaccinations for COVID begin, businesses will want to research options for their employees. Private businesses can make the vaccine mandatory. The call for essential businesses to provide vaccines for their employees is great, so it’s important to make a decision about your position. It’s easier than ever to attend a pitch competition in 2021 — most of them have moved online! Check out our article on the topic: Layaway shoppers at a Walmart in Canton, Mississippi had Christmas come a bit early this year when a secret Santa paid off 300 unpaid or partially-paid tickets. The anonymous gifter’s check to Walmart was enough money to cover not only the layaway tickets but also allowed for the company to make local donations to toy and food banks. While the exact number of the donation isn’t known, some news outlets reported the bill was over $50,000.FedEx Under Fire From Businesses For Shipping Limits
Study Shows PPP Loans Helped But The Boost Was Short-Lived
Small Businesses Grapple With Vaccinating Employees
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Shelbi Wescott
Managing Editor at Merchant Maverick
Managing Editor Shelbi Wescott has been researching and comparing small business payroll and accounting software since 2019. An accomplished author in both the science-fiction and mystery genres, she received an Honorable Mention for Best YA Mystery from the Library Journal for her novel After Life. Shelbi has a BA in English Literature and a Masters in Teaching from Lewis and Clark College.
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