Small-Business Relief Effort ‘a Mess’: Live Business Updates - The New York Times

Small-Business Relief Effort ‘a Mess’: Live Business Updates - The New York Times


Small-Business Relief Effort ‘a Mess’: Live Business Updates - The New York Times

Posted: 02 Apr 2020 04:25 PM PDT

Here's what you need to know:

A $349 billion relief program to help small businesses cover their payroll costs for up to eight weeks will be "up and running tomorrow," Treasury Secretary Steven Mnuchin said at the White House briefing on Thursday.

But banks and other lenders that are expected to make the loans warned that the relief effort, known as the paycheck protection program, was going to have a rocky start. Late on Thursday, they were still waiting for critical technical guidance about how to make the loans, and pushing back on terms they warned were onerous.

Brock Blake, the chief executive of Lendio, a marketplace that connects borrowers and lenders, tweeted: "Wow. What a mess!"

The lenders appear to have won one concession. Mr. Mnuchin said the interest rates paid by borrowers on the loans would be increased to 1 percent from 0.5 percent after banks protested that they would lose money servicing the loans unless the rate was raised.

Image
Credit...Tom Brenner/Reuters

The banks were still waiting, however, for guidance about how to underwrite the loans and how the government would handle a provision promising forgiveness for businesses that used the money to retain or rehire workers.

Mr. Mnuchin said borrowers would be able to apply for the loans and receive them quickly: "You get the money, you get it the same day."

But industry executives said there was virtually no chance of that happening on Friday. Even as Mr. Mnuchin was speaking, lenders still had "nothing" in the way of guidance on critical loan issues, said Tony Wilkinson, the chief executive of the National Association of Government Guaranteed Lenders, an industry trade group.

Chase updated its website on Thursday night to say it was still awaiting information on the program and "as a result, Chase will most likely not be able to start accepting applications on Friday, April 3rd, as we had hoped."

Mr. Mnuchin also said that his agency and the Small Business Administration had "brought in a lot of external resources" for the program. Jovita Carranza, the small-business administrator, said they were working with partners from the government and the private sector to "make our systems as robust as possible to meet the needs."

Neither official named any companies involved in the effort. But they may draw on the assistance of major firms in cloud computing and financial services in distributing the loans, which are meant to help shuttered businesses make payroll.

Oil prices surged, setting off a rally in shares of energy companies, after President Trump said on Thursday that he expected that Saudi Arabia and Russia would substantially cut their oil production to halt the collapse of prices.

Mr. Trump said in a tweet that he had spoken with Crown Prince Mohammed bin Salman, who had spoken with President Vladimir V. Putin. "I expect & hope that they will be cutting back approximately 10 million barrels," he said. That figure represents about 10 percent of normal global consumption. The president later said the cut could be as much as 15 million barrels.

Saudi Arabia called on Thursday for an urgent meeting of the Organization of the Petroleum Exporting Countries and other oil-producing countries with the "aim of reaching a fair agreement to restore" balance in the oil markets. The Saudis said in a statement that they were acting to support the global economy and in "appreciation" of Mr. Trump's request.

The Kremlin denied that Mr. Putin had spoken to the Saudi crown prince, as Mr. Trump had said in his Twitter message. "No, there was no conversation," Dmitri S. Peskov, spokesman for Mr. Putin, told the Interfax news agency.

Still, crude oil futures, which had already been climbing on Thursday, surged and shares of oil and gas companies rallied. West Texas Intermediate, the U.S. crude benchmark, rose about 25 percent, and Occidental Petroleum was the best performing stock in the S&P 500, with a gain of about 19 percent. Apache rose nearly 17 percent, and Halliburton gained more than 13 percent.

The rally bolstered the stock market, with the S&P 500 ending the day up more than 2 percent.

Oil prices had been hammered as the coronavirus pandemic all but eliminated travel and damped demand for energy. A price war that broke out between Saudi Arabia and Russia last month intensified the decline. After the countries failed to reach a deal on production cuts, both instead increased output in an effort to gain market share.

The combination of slumping demand and the contest between two of the world's largest oil producers had pushed crude oil prices down by 55 percent in March alone, wreaking havoc on the energy industry, with oil companies slashing budgets, and refineries cutting production of gasoline, diesel and jet fuel.

The possibility of some relief to the industry was also welcomed by stock investors looking for some good news. Earlier on Thursday, a report on jobless claims showed that 6.6 million Americans filed for unemployment benefits last week in the latest sign of the economic damage wrought by the coronavirus pandemic.

Businesses dependent on consumer spending were battered as a result. Retailers ranging from Gap to Walgreens Boots Alliance fell. Live Nation Entertainment, which produces concerts and sells tickets to events, was one of the worst-performing stocks in the S&P 500, after falling about 13 percent. Kohl's fell about 10 percent.

Claims were filed last week

Initial jobless claims, per week

Seasonally adjusted

The week before was revised

up 24,000 to 3,307,000

Claims were filed last week

Initial jobless claims, per week

Seasonally adjusted

The week before was revised

up 24,000 to 3,307,000

Claims were filed last week

Initial jobless claims, per week

Seasonally adjusted

The week before was revised

up 24,000 to 3,307,000

Claims were filed last week

Initial jobless claims, per week

Seasonally adjusted

The week before was revised

up 24,000 to 3,307,000

Source: Department of Labor

By The New York Times

More than 6.6 million people filed new claims for unemployment benefits last week, the Labor Department said Thursday, setting a grim record for the second straight week.

The latest claims brought the two-week total to nearly 10 million.

The speed and scale of the job losses is without precedent. Until last month, the worst week for unemployment filings was 695,000 in 1982.

"What usually takes months or quarters to happen in a recession is happening in a matter of weeks," said Michelle Meyer, chief U.S. economist for Bank of America Merrill Lynch.

A month ago, most forecasters still thought the United States could avoid a recession. Today, with the pandemic shuttering businesses and forcing vast layoffs, many economists are expecting a decline in gross domestic product that rivals the worst periods of the Great Depression.

Treasury Secretary Steven Mnuchin said he has tapped three Wall Street investment banking firms to advise the government on its bailout of the airline industry and other companies that are critical to national security.

As part of the economic relief package passed by Congress last week, Mr. Mnuchin has allocated more than $40 billion in money to rescue the airlines and other companies that are important for national security. The government will take equity stakes or other forms of compensation in exchange for propping up the businesses.

At a news conference on Thursday, Mr. Mnuchin said he picked PJT Partners, Moelis and Perella Weinberg Partners to serve as outside advisers to the effort.

PJT will be focused on the airlines, Moelis will focus on cargo carriers and Perella Weinberg will concentrate on other companies, such as Boeing. Mr. Mnuchin said that the firms would be charging the rate they use for work for charities, and the contracts would be made public.

"No big fees to bankers," Mr. Mnuchin said. The Treasury has also selected three law firms to be part of the process. Mr. Mnuchin did not disclose their names.

As the coronavirus pandemic worsens and more Americans are told to stay home to avoid spreading the virus, retailers are responding by extending store closings and providing protection to workers in stores that remain open.

Lululemon said on Thursday that its stores in North America and other countries would remain closed until it was safe to reopen and that it would keep employees on the payroll through June 1, even if the stores remain shuttered.

The company's senior leaders will take a 20 percent salary cut for three months, and its board will forgo a cash retainer, resources that will go toward a fund for Lululemon employees "facing Covid-19 related hardships."

The athleisure retailer, which recently hit $4 billion in annual sales, will continue to sells its goods online.

Bed Bath & Beyond said that it would extend its temporary store closures in the United States and Canada until "at least" May 2. Its buybuybaby and Harmon stores continue to operate based on state and local regulations.

The chain said it would furlough most store associates and "a portion" of corporate associates until at least May 2. Bed Bath & Beyond said staff affected by its announcement would receive pay and benefits through April 18.

And Target said on Thursday that it would supply face masks and gloves to its more than 350,000 workers in stores and distribution centers, following a similar announcement by Walmart this week. The chain said that starting on Saturday, it would also monitor and potentially limit customer traffic in stores to promote social distancing. Target said that it had already put up signs to promote social distancing, and added plexiglass partitions at registers.

The company's move is notable because workers across essential retail chains have been seeking more protection, especially through the use of masks and gloves, as they face potential exposure to the coronavirus.

Last month, several chains told employees that they could not wear masks because it might be off-putting to customers. That stance is shifting as the number of deaths from the virus rise and essential retailers remain some of the only places left where people are congregating.

The Congressional Budget Office said on Thursday that it expected unemployment to top 10 percent for the second quarter of 2020 and the economy to contract by 7 percent as the coronavirus takes a toll on economic activity in the United States.

In a blog post on Thursday, the director of the budget office, Phillip Swagel, wrote the decline "could be much larger" and that the virus had made any economic forecasts highly uncertain.

Mr. Swagel said the unemployment rate could have reached 12 percent if not for the expected effects of the $2.2 trillion economic rescue package that President Trump signed last week.

More ominously, the office does not expect a quick return to rapid economic growth later this year. Instead, Mr. Swagel wrote that its analysts "expected the effects of job losses and business closures to be felt for some time" with the unemployment rate remaining at 9 percent by the end of 2021.

Officials from the Treasury Department and the Internal Revenue Service have told Congress that direct deposits of economic stimulus money are likely to begin the week of April 13 and paper checks will start being sent in early May.

According to a memo based on the briefing with members of the House Ways and Means Committee this week, taxpayers whose banking information is not on file with the I.R.S. could experience long delays in receiving their paper checks, with wait times stretching as long as five months. The paper checks will be cut at a rate of five million per week, and people with the lowest income will receive them first.

The I.R.S. estimates that there are 150 million to 170 million taxpayers and that as many as 110 million of them either do not file or have not provided their banking information.

The agency is encouraging those people to file a "simple tax return" that would include their direct deposit details. It also hopes to have a new online portal ready in the next three weeks that will allow taxpayers to check on the status of their refunds and update their information.

A Treasury spokeswoman said that 50 million to 70 million Americans are expected to receive Economic Impact Payments through direct deposit by April 15 and that "the "overwhelming majority" of eligible Americans will receive payments within the next three weeks.

  • Delta Air Lines told employees that it would allow flight attendants, baggage handlers, gate agents and other so-called front-line employees who were concerned about the coronavirus to stay home and still get paid. Any employee concerned for their safety would be allowed to take voluntary leave and continue to be paid "in some form," according to an internal memo to managers that was viewed by The New York Times.

  • A partnership between Ben Silbermann, chief executive of technology company Pinterest, and research groups at institutions and universities including Stanford University and University of Pennsylvania, introduced a new app called How We Feel. The app allows people to report their symptoms to scientists, doctors and public health professionals to aid in research and tracking of the coronavirus.

  • Governors and mayors across the country are answering questions about the virus on Twitter, using the hashtags #AsktheGov and #AsktheMayor. Governors from Rhode Island, California, Washington, Illinois, and 10 other states took questions on Thursday, while mayors from at least nine cities said they would answer questions on Friday.

  • Amazon said on Thursday that it was restricting the sale of N95 masks and large bottles of hand sanitizer to hospitals and government agencies to ease the supply shortages of medical supplies from the coronavirus. It said small-volume bottles of hand sanitizer and disinfectant wipes for personal use would remain available on the site.

  • Google said on Thursday that it may relax some of its restrictions for ads related to the coronavirus to allow hospitals, medical providers, governments and nongovernmental organizations to place advertisements featuring information about the virus or next to virus-related searches. The company had been broadly blocking ads pertaining to the coronavirus since January under its "sensitive events" policy.

Reporting was contributed by Alan Rappeport, Sapna Maheshwari, Nicole Sperling, Niraj Chokshi, Jim Tankersley, Peter Eavis, Stanley Reed, Ben Casselman, Patricia Cohen, Clifford Krauss, Andrew E. Kramer, Mary Williams Walsh, Keith Bradsher, Neal E. Boudette, Kate Conger, Daisuke Wakabayashi, Stefanos Chen, Keith Collins, David Yaffe-Bellany, Mohammed Hadi, Carlos Tejada and Daniel Victor.

Cisco Doubles Down on Small Business Commitment with Expanded Portfolio - Yahoo Finance

Posted: 02 Apr 2020 02:04 AM PDT

New Cisco Designed Portfolio to Deliver Curated Products for Small Businesses to Scale

  • New technology and offers in the Cisco Designed portfolio built to deliver the right products at the right price for small businesses
  • Frictionless and easy customer experience to drive awareness, demand and adoption across all geographies
  • Dedicated online destination for small businesses on Cisco.com

SINGAPORE, April 2, 2020 /PRNewswire/ -- As the world navigates through the challenging new reality, small businesses have been front and center of conversations and solutions. Small businesses are the backbone of society and represent millions of individual companies accounting for two-thirds of the global GDP. With that in mind, Cisco is doubling down its focus on serving small businesses by offering customers and partners a simple, secure and flexible portfolio and announcing new offers tailored to the small business buyer.

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Cisco Doubles Down on Small Business Commitment with Expanded Portfolio

Now more than then ever, technology is at the forefront powering remote and secure productivity. On top of that, small businesses are facing a pace of change unlike ever before, including confronting an uncertain global economic environment. They must also address an increasingly savvy customer base who expect digital experiences, amazing customer service and simple user interfaces. With the increased utilization of cloud and web-based applications, a strong and secure network is the essential life blood of any small business.

View photos
Cisco Doubles Down on Small Business Commitment with Expanded Portfolio

Collected under the Cisco Designed brand, the newly launched portfolio delivers the right end-to-end products that are highly curated to work for small businesses whether it is for networking, security, collaboration, cloud or internet connectivity. To support businesses, Cisco is doubling partner investments for this market and creating an easy and frictionless experience for both partners and smaller customers with faster response times and immediate access to expertise.

"Small businesses are personal. With the current macroeconomic environment, we are committed to help keep small businesses strong, safe and smart through technology, so they continue to focus on keeping their business running," said Bidhan Roy, Managing Director, Head of Commercial and Small Business, Asia Pacific, Japan and China, Cisco.

"Cisco's goal is to give small businesses access to the same best in class technology innovation as our enterprise customers, but ensuring it makes sense for their business and also balancing it with simplicity and usability. As our customers focus on navigating through turbulent times, we are here to ensure technology works as hard as they do," he added.

To help address these needs and allow small businesses to focus on their core activities, Cisco is announcing its new Cisco Designed portfolio in Asia Pacific with new offerings bringing together the power of machine learning, AI and cloud-driven solutions, and created to make buying, installation and maintenance simple.

The simplified experience includes:

  • New bundles and offers scaled for small business use cases: To further reduce cost and complexity while improving operational efficiency, bundled solutions that focus on key technology areas to support rapidly growing business use cases such as "Quick Office Setup", "Secure Guest Wi-Fi", "Seamless Remote Work Experience", "Ransomware Protection" and "Safe Business Transactions" will be available.
  • New app to eliminate complex and expensive networks: The new Cisco Business Wireless Mobile App provides a simple way for an individual or company to configure and manage networks in any location, all from the convenience of their smartphone. Available in the Apple App Store (iOS) or on Google Play (Android).
  • Secure connectivity via Meraki: Network downtime and security issues can impact revenue, customer loyalty and data security. Bringing together the high-speed and high-density capabilities of WiFi 6 to the cloud-managed Meraki portfolio of access points, the new Meraki Wi-Fi 6 Access points bring flexibility to growing businesses looking to digitize quickly. The technology will enable their network to scale to effectively manage more connected devices and richer content like video, as well as provide better performance as new applications emerge.
  • Meraki Cloud-managed Smart Cameras: Not only can cameras help reduce inventory shrinkage and other risks, they are also powered to deliver valuable business insights on areas ranging from foot traffic to identifying which displays are attracting attention to parking utilization. These new cameras include high-quality video, wireless connectivity, on-appliance storage and built-in advanced analytics, eliminating costs involved in sending traffic to a data center. They offer a 360-degree view through a fisheye camera, and one unit can cover an entire premise efficiently for small businesses.

Cisco is now responding and supporting savvy small businesses struggling with complexities faster with the new Virtual Demand Center (VDC). VDC makes it more convenient for customers to engage with Cisco and our partners. For example, it is now easier to schedule an appointment or arrange a call back from an expert; the VDC connects customers to a partner in less than three hours, in 24 languages globally.

Cisco is also getting behind partners who understand the small business market by significantly increasing its partner investments to scale and improve partner profitability. There has never been a better time for partners to double down on and support small.

All new Small Business Products will be rolled out and available in APJC from April 2020 onwards.

Additional Resources:
Check out the new Small Business Cisco.com page
Hear from a Cisco Designed for Business customer 
Read the Blog: The Small Business Conundrum
Follow Cisco Small Business on TwitterFacebook and LinkedIn 

About Cisco

Cisco (NASDAQ: CSCO) is the worldwide technology leader that has been making the Internet work since 1984. Our people, products and partners help society securely connect and seize tomorrow's digital opportunity today. Discover more at thenetwork.cisco.com and follow us on Twitter at @Cisco.

Cisco and the Cisco logo are trademarks or registered trademarks of Cisco and/or its affiliates in the U.S. and other countries. A listing of Cisco's trademarks can be found at www.cisco.com/go/trademarks. Third-party trademarks mentioned are the property of their respective owners. The use of the word "partner" does not imply a partnership relationship between Cisco and any other company.

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Cisco Logo

Photo - https://photos.prnasia.com/prnh/20200402/2767451-1-a
Photo - https://photos.prnasia.com/prnh/20200402/2767451-1-b
Logo - https://photos.prnasia.com/prnh/20200402/2767451-1-LOGO

 

SOURCE Cisco

State offers incentives for small businesses to produce medical supplies - Cadillac News

Posted: 01 Apr 2020 09:00 PM PDT

LANSING — Small-scale manufacturers that haven't been interested in producing medical supplies in the fight against COVID-19 might have a powerful financial reason now to do so.

The Michigan Economic Development Corporation's Pure Michigan Business Connect program has launched a new grant program providing a total of $1 million to Michigan's small manufacturers looking to retool and produce critical health and human service supplies in response to the COVID-19 outbreak.

"Michigan has the manufacturing strength, innovation and determination to lead the charge in establishing an Arsenal of Health to address the shortage of critical supplies we are facing as a result of the COVID-19 virus,' said MEDC CEO Mark Burton. "The PMBC COVID-19 Emergency Access and Retooling Grants program will provide immediate assistance to small businesses around the state who are ready to step up and use their manufacturing know-how and retool to support recovery efforts in this time of need.'

The program will award grants of $10,000 to $150,000 to companies that can quickly and effectively manufacture critical health and human service supplies. Michigan small businesses (per SBA size standards) and established nonprofits are eligible to apply. Businesses can use the funds to support the purchase of equipment necessary to manufacture critical supplies, logistics and shipping costs of procuring necessary equipment, technology upgrades and other costs related to operationalizing new product lines.

While the program does not guarantee sales channels, the Pure Michigan Business Connect team will assist grantees by connecting them with demand identified through the COVID-19 Virtual Procurement and Donation Assistance portal. The portal, an effort of PMBC in collaboration with the State Emergency Operation Center, is a free, virtual procurement and donation platform that provides health and human service providers direct access to businesses within the state providing and donating supplies including personal protection equipment, food, medical devices, paper products, cleaning equipment and more.

The platform is also offering a place for companies with manufacturing capabilities for personal protection equipment to indicate which items (i.e. masks, gowns, ventilators) they are able to produce, along with quantity and timing detail. To learn more, visit https://www.michiganbusiness.org/virtual-procurement/.

Last week, the MEDC announced applications are now being accepted for the Michigan Small Business Relief Program, authorized by the Michigan Strategic Fund on March 19, to provide up to $20 million in grants and loans to provide economic assistance to Michigan's small businesses that have been negatively impacted by the COVID-19 virus. The funds are being administered by 15 local and nonprofit economic development organizations around Michigan, covering all 83 counties in the state. Visit https://www.michiganbusiness.org/msbrp for more information on how to apply.

In addition, michiganbusiness.org/covid19 also features other resources for businesses across Michigan to assist them in recovering from economic losses as a result of the COVID-19 virus. This includes U.S. Small Business Administration emergency loans, support services offered through the SBDC and more. The MEDC has also developed a FAQ for Michigan businesses and communities at michiganbusiness.org/covid19-faq.

For those who have questions about the state's actions to mitigate the spread of coronavirus, please call the COVID-19 Hotline at 1-888-535-6136 between 8 a.m. and 5 p.m. daily.

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