The U.S. government needs to immediately provide small businesses with financial support.
The Paycheck Protection Program PPP was good. It provided over $500 billion dollars in support and got money into the economy. It expired in July.
That was a partial bridge to the other side of the pandemic but that bridge isn’t complete.
The pandemic is still raging and small businesses are still disrupted and they can’t open and if the virus intensifies here we may see some backtracking on how these businesses reopen.
Small business needs more support and that goes to the stimulus package that Congress and the Administration are now negotiating. They need to come to a deal now because if they don’t then that money won’t get out there and we will see many more small businesses fail. It will mean that the recovery will be even more difficult and take longer to get back to full employment, while the Chinese and other countries continue to gain market share.
Moody’s Chief Economist Mark Zandi talks to Worldwide Exchange about the state of small business and consumer confidence.