Texas Border Business
Today, editorial boards around the country are calling for more fiscal action to help businesses recover. America’s Recovery Fund Coalition has endorsed the Small Business Comeback Act as a solution to help businesses in desperate need. The Comeback Act (H.R. 7671) was introduced in the House by Representatives Filemon Vela (D-TX) and Lance Gooden (R-TX) this week as the economic environment for everyday Americans and businesses continues to deteriorate.
What the papers are saying:
- The Washington Post warns that PPP “only delayed the inevitable” and that “layoffs are beginning to spike again across the country” as the pandemic outlasts the program.
- The New York Times writes: “With little chance of an imminent economic rebound, millions of Americans who have lost their jobs during the pandemic are now in grave danger of losing their homes, too.”
- And the Wall Street Journal editorial board described the current proposals being negotiated in the Senate “a phase-four flop,” arguing Republicans “need to offer voters alternative policies that would return the economy in 2021 to its pre-Covid prosperity.”
Why we need help now, by the numbers:
Businesses are in distress:
- The New York Fed’s Weekly Economic Index dipped to -6.86 for the week ending July 18th. The WEI had improved slowly but steadily since the collapse of the US economy in mid-March. However, the index remains mired deep in negative territory, and now shows signs of another downturn in economic activity.
- Yelp’s Economic Average data shows that permanent business closures continue to rise.
- Commercial chapter 11 filings were up 43% last month from June of last year.
- TSA Checkpoint activity reveals signs of slowing air travel once again.
The u nemployment picture is awful and showing signs that it’s getting worse:
- Initial jobless claims rose for the week of July 18 to 1.42 million.
- A staggering 31.8 million people remain on some form of unemployment assistance.
- Permanent unemployment rose in June.
Broader signs show another economic downturn on the horizon:
- U.S. mortgage delinquency rate jumped to 7.76%, its highest level in more than eight years as Americans struggle to pay their bills.
- Commercial Mortgage-Backed Security delinquency rates have risen from just over 2% in February to 10.32% in June, just a fraction below the all-time high of 10.34% set in July of 2012.
- Economists are beginning to cut their Q3 2020 GDP forecasts and continue to lower their full-year estimates.
Why the Comeback Act is the solution:
The Small Business Recovery Fund would provide federal grants for operational expenses to help businesses reopen and stay open as they navigate a new normal. The fund will include anti-abuse mechanisms and strict federal oversight.
1. Businesses apply for a grant online through an easy-to-access form, entering data on operating costs and revenue from March 1 to application date.
2. The decision is nearly instant and distributed quickly, helping businesses recoup lost revenue due to social distancing and forced shutdowns.
3. Funds would help cover essential operating expenses including rent, utilities, payroll, and state and local taxes to give businesses financial certainty and confidence to reopen.
If you would like to learn more about the Coalition and why Congress needs to pass the Small Business Comeback Act to propel our nation’s economic recovery, please don’t hesitate to email press@americasrecoveryfund.org.
