NEW THREAD: The impact of #COVID19 on #smallbiz has been catastrophic. According to 2 new analyses from @SHamiltonian and @HamiltonProj:
From mid-March to mid-May 2020, > 40% of all small businesses closed, causing revenues to drop 40% on average #COVIDEconomy 
By mid-July, more than 420,000 small businesses had permanently closed—equivalent to the # of failures typically seen over a whole year. #COVIDEconomy #SmallBiz
Furthermore, nearly half of small businesses in US cities have two weeks or less of cash on hand, and the amount differs considerably by the race of the business owner. #COVIDEconomy #SmallBiz
Declines in business revenue has caused many firms to become insolvent. The Financial Stress Index and short-term debt for firms has reached levels not seen since the Great Recession, suggesting a wave of bankruptcies to come.
While evidence suggests that the #PaycheckProtection Program (#PPP) had a positive effect on small businesses overall, the outlook is bleak, and the pandemic’s effects are likely to last for some time.
To help viable small businesses stay afloat & maximize employment by #smallbiz during the pandemic, @SHamiltonian proposes an expanded refundable small-business tax credit (ERC) in addition to suppressing the virus & aggressive fiscal stimulus (ex. #UI)
To better prepare our infrastructure for the future, @SHamiltonian proposes a significant, sustained increase in investment in the IRS so that it can implement large-scale wage subsidy programs and provide immediate liquidity to every small business in the country.
With many families experiencing an income shock, supporting #smallbiz & the jobs they provide is critical.
"There are millions of small businesses teetering on the brink, and there are lots of things we can do to help them,” writes @SHamiltonian.
"There are millions of small businesses teetering on the brink, and there are lots of things we can do to help them,” writes @SHamiltonian.
Read @SHamiltonian’s full proposal here: hamiltonproject.org/papers/from_su…
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Read the full set of economic facts from @laurenlbauer, @KEbroady, @wendyedelberg, and @jimmyodonnell17 here: hamiltonproject.org/papers/ten_fac…
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Read the full set of economic facts from @laurenlbauer, @KEbroady, @wendyedelberg, and @jimmyodonnell17 here: hamiltonproject.org/papers/ten_fac…
To learn more about how #COVID19 is impacting small business, don’t forget to attend our webinar at 2pm today: hamiltonproject.org/events/small_b…
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