— This is the script of CNBC's news report for China's CCTV on June 3, 2020, Wednesday.
Small businesses in the us are already the most vulnerable to the outbreak. In mid-may, a survey released by Facebook, a US social networking platform, found that a third of small businesses closed during the outbreak said they could not restart, while those that were about to or had resumed were hit by protests.
Some small business owners have no insurance, making it difficult for them to afford to lose money in violent protests. In Manhattan, small business owners are trying to protect their stores from violent protests by nailing up wooden boards. Business is so important to the U.S. economy that it accounts for more than 40 percent of economic activity and half of all jobs in the country in the past few years. Before the outbreak of this protest, a survey conducted by CNBC showed that the US small business confidence index replaced 64 in the second quarter from 64 in the first quarter. It was the first time since the survey began three years ago that the index had fallen below 50, indicating overall confidence was negative.
In late May, the Barron Weekly website published an article stating that small businesses in the US are in crisis and their survival is the key to revitalizing the US economy. Relevant tracking data shows that US small businesses showed some signs of recovery in May, but the growth momentum was recently curbed by protests.
To help small businesses weather the crisis, the United States has launched two rounds of rescue programs for small businesses. But according to the latest media reports, many of the funds for the paycheck protection plan (PPP) have been misallocated due to a government system error. Because of various reasons, there are still a lot of undistributed. In addition, in the face of high unemployment, U.S. government unemployment assistance exceeds minimum wages in some areas, making it harder for small businesses to hire and harder for them to restart.
In addition to the immediate impact, recent protests and curfews have forced ride-hailing apps such as Uber and Lyft and delivery companies to suspend services in some cities, that will put further pressure on the small business recovery. Local governments in the United States, including New York City, are considering various measures to try to boost small businesses. We will keep an eye on this issue.