NFIB Weekly News

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NFIB Weekly News Leading the News

Small Business Optimism Dropped Sharply In December (01/12/2021)

NFIB’s Small Business Optimism Index declined to 95.9 in December, a 5.5 point drop that puts the Index below 98, its average value since 1973. Small business job growth stayed steady but uneven in December, as certain sectors are experiencing a slowdown due to state-mandated business closures and reluctant consumer spending. NFIB Chief Economist Bill Dunkelberg was quoted saying, “This month’s drop in small business optimism is historically very large and most of the decline was due to the outlook of sales and business conditions in 2021. ... Small businesses are concerned about potential new economic policy in the new administration and the increased spread of COVID-19 that is causing renewed government-mandated business closures across the nation.”

Business Climate

IRS Offers Guidance On Deducting PPP Expenses (01/12/2021)

Accounting Today (1/6, Cohn) reported, “The Internal Revenue Service and the Treasury Department released guidance [Jan. 6] on claiming deductions for expenses associated with Paycheck Protection Program loans that have been forgiven.” The latest coronavirus relief bill “included a provision that allows the expenses to be deductible,” and “it will allow expenses related to seeking forgiveness of the Small Business Administration-backed loans to be deducted by businesses that received the loans, so businesses will be able to engage accountants to help with the task of applying for PPP loan forgiveness.”

Small Business Marketing

Capital One Engages With Nonprofit Leaders On Supporting Small Businesses (01/12/2021)

In a piece for Dallas Innovates (TX) (1/7), Capital One spoke with nonprofit leaders on “the best ways to support small businesses right now.” Capital One has joined “a coalition of brands and nonprofit organizations” to launch Small Unites, “a national advocacy program that is providing ongoing support for small businesses across the U.S.” Capital One is “shining the spotlight on nonprofits supporting food and hunger relief, workforce development, digital access and small business support.” It added, “Through our $50 million commitment to address the rapidly changing needs of our communities during this pandemic, Capital One remains committed to make a positive impact for change.”

Wages and Benefits

Unemployment Claims Slipped To 787K Last Week (01/12/2021)

The AP (1/7, Rugaber) reported the Labor Department said Thursday that initial claims for unemployment aid “fell slightly to 787,000” last week, “evidence of a job market stumbling in the face of the viral pandemic and the damage it has inflicted on the economy for nearly 10 months.” The New York Times (1/7, Cohen) said the fact that new claims for benefits “remained high last week” is “the latest evidence that the pandemic-racked economy still has a lot of lost ground to make up in the new year.”