Welcome to another edition of this week’s weekly small business news round-up. The Facebook Small Business Report is out, and what does President Biden’s racial equity executive order means for you?
Don’t forget about the #EmployeeRetentionCredit …
How small businesses could be saving money with the Employee Retention Credit (WWMT)
Semm said many businesses who were lucky enough to be operational during the pandemic qualified for the tax credit, even if the owner collected the Paycheck Protection Program loan. According to the Internal Revenue Service’s website, the Employee Retention Credit fell under the CARES Act, and its purpose was to encourage businesses to keep employees on their payroll. Semm said many businesses qualified if they were shut down or had a reduction of more than 50% during the COVID-19 pandemic. Eligibility for the Employee Retention Credit broadened with the Consolidated Appropriations Act 2021, and Semm said it was possible many small business owners didn’t realize they now qualified for the credit.
Things are not looking good for black small business owners …
Black small-business owners are being left behind in the pandemic, survey finds (CNBC)
About one-third, or 37%, of Black small-business owners, said they can survive more than a year under current conditions, versus 59% of White small-business owners and 55% of Hispanic small-business owners, according to the latest quarterly CNBC|SurveyMonkey Small Business Survey. Additionally, 15% said their business has been temporarily shuttered due to the pandemic and has not reopened yet. In comparison, 8% of White small-business owners reported the same. The survey was conducted Jan. 25-31 using the SurveyMonkey platform and included responses from just over 2,100 small-business owners across the country.
What the Facebook Small Business Report is saying …
Facebook Small Business Report: 2020 Was a Challenging Year for Small Businesses — Especially Those Run by Women and Minorities (Facebook)
2020 was a challenging year for small businesses. Many closed their doors either temporarily or permanently, and many that stayed open struggled financially. Throughout the year, Facebook has listened to small businesses in the United States and around the world to find out how they are coping and what they need. Today, in partnership with the Small Business Roundtable, Facebook is publishing our latest U.S. State of Small Business report, which gives us a more comprehensive picture of the impact COVID-19 had in 2020. For this latest report, we surveyed more than 11,000 business leaders, 8,000 employees and 6,000 consumers between late November and late December.
Shipping giant FedEx is giving away $230,000 in cash grants plus $22,500 in FedEx services to 12 small businesses in a nationwide competition…
$230,000 in small-business grants up for grabs in FedEx contest (NewsDay)
The FedEx Small Business Grant Contest, in its ninth year, is open to U.S. companies with fewer than 100 employees and operating for six months or more as of Tuesday. The grant applicants must have a FedEx shipping account. Applications will be accepted until March 9 followed by public voting between March 10 and 24 to narrow the applicant pool to 100, said Jenny Robertson, FedEx’s senior vice president of integrated marketing and communications. To apply, go to nwsdy.li/fedexcontest. The 12 winners will be announced on May 10.
The story of the only small business in the top 50 largest federal contractors…
How a “Small Business” Kingpin Wins Billions in Defense Contracts (POGO)
On January 5, the Pentagon’s Defense Logistics Agency (DLA) awarded a contract worth up to $33 billion over 10 years to a privately held equipment supplier called Atlantic Diving Supply, Inc., or ADS. Only small businesses were legally permitted to bid on the contract, and ADS has been accused of defrauding the Pentagon by falsely claiming to be a small business. According to the most recent official tally of top government contractors, ADS is ranked as the 24th largest federal contractor in the fiscal year 2019 with more than $3 billion in sales and ADS is the only “small business” among the top 50 that year.
Three Things President Biden’s Executive Order On Racial Equity Means For Small Business (FORBES)
As part of his day one actions, President Joe Biden issued an executive order (EO) on advancing racial equity and support for underserved communities. The first question that comes to mind is whether there are any new requirements or rules? To date, no. Still, this executive action is important because it sends an important message about where the government and the private sector are headed. For small business owners who are struggling to survive the Covid-19 pandemic or have been forced to close because of it, this EO begins to address racial inequity in a way that will be helpful to rebuilding our country.