Coronavirus Government Response Update—Regional Federal Reserve President Calls for Face Masks

July 15, 2020 Coronavirus Government Response Update—Regional Federal Reserve President Calls for Face Masks

Welcome to the Coronavirus Government Response Update. This information is intended to keep ISSA members up to date on fast-moving government affairs related to the COVID-19 pandemic, as well as other public policy issues important to the cleaning industry. Today’s update touches on a regional Federal Reserve president’s announcement about the importance of wearing face masks, small businesses rehiring staff but for fewer hours and less pay, and more.

Fed’s Kaplan Says Wearing Face Masks is Most Important Thing for Economy Now
As many U.S. states are seeing a resurgence in new cases and hospitalizations, the “most important thing for the economy now is wearing protective face coverings,” said Steven Kaplan, president of the Dallas Federal Reserve. The economy will “suffer a contraction of 4.5% or 5% this year,” he added. “It would be a lot less costly if we did a good job managing the virus.”

Small Businesses Rehire Staff but Cut Pay and Hours, Survey Finds
While the number of small business employees is nearly back to pre-COVID-19 levels, small-business owners continue to struggle as coronavirus cases spike in many parts of the country. Many employees are now working reduced hours and with lower pay, the percentage of employees temporarily furloughed remains 45% higher than a year ago, 30% of business owners reported sales as of mid-June that were less than half what they were pre-pandemic, and close to a quarter of all small businesses are still considering closing their doors permanently because of COVID-19.

More Than 80 Percent of PPP Loan Recipients Will Run Out of Money by August
According to a survey released Tuesday, 84% of small-business owners who got coronavirus relief loans through the Paycheck Protection Program (PPP) say they will run out of funding by the first week of August, and 16% said they would be able to continue paying workers beyond that point. A second surge of COVID-19 cases has already slowed the early rebound from lockdowns in March and April. California, Texas, and Florida are among several states to reimpose closures this month, and public health officials fear that others may need to follow suit. Just 37% of small-business owners said they would be able to survive another wave of business closures.

Other links of interest: