It turns out that the federal government failed to prevent unemployment in its astronomical stimulus and relief package.
According to a new study by National Federation of Independent Business (NFIB), 22 percent of businesses that received funding from the Paycheck Protection Program will lay off workers. Because the economy is not reopening as rapidly as anticipated or the rebound is slowing down, a growing number of U.S. firms cannot retain staff.
The NFIB survey further revealed that 56 percent of PPP recipients said they have spent all of their funds. Forty-four percent note that they will soon run out of PPP money.
“As owners finish using their loan, more are finding that economic conditions are unable to support current staffing levels,” the NFIB said in the survey released Friday.
It is unclear if the federal government will expand PPP or embark upon other stimulus or relief measures. For now, businesses will just have to make due until a vaccine is developed.
The poll also found that businesses are having trouble reopening due to a lack of hand sanitizer or face masks.
A trouble is a brewin’.
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