Small and medium-size firms in crisis: A message from the real economy
THE REAL ECONOMY |
The condition of small and medium-size firms implies a potential inflection point in the nascent economic rebound following the near shutdown of the economy last spring. Without further reform and support of the signature Paycheck Protection Program—which provided a vital lifeline to those firms during the worst of the pandemic—there will be an increase in bankruptcies, followed by another round of job losses, this time tilted toward the permanent elimination of jobs that support the bulk of the American middle and working classes. With many of these businesses still struggling to survive, almost all of the PPP loans made to small and midsize firms will have to be forgiven to prevent a much larger round of permanent job losses.
In this issue, we explore this real economy crisis as well as the impact of a recent Federal Reserve policy shift. In addition, we examine the distressed hospitality industry, how cyberattacks threaten life sciences companies’ vaccine research as well as business reopening trends. Download the full issue.
This article was written by Joe Brusuelas and originally appeared on 2020-09-09.
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