In addition to record unemployment numbers, experts now predict that a “wave” of small business bankruptcies is on the horizon — and it could leave the United States with 40% fewer small businesses.
The New York Times reports that the United States Chamber of Commerce estimates “more than 40 percent of the nation’s 30 million small businesses could close permanently in the next six months” — a statistic entirely attributable to the coronavirus pandemic and ensuing lockdowns.
The economic consequences of such a mass business failure could last for “generations,” the NYT reports.
“Commercial bankruptcies in the first quarter of 2020 ticked up 4 percent from a year earlier, according to data from the American Bankruptcy Institute,” according to the NYT. “But many of those filings were made before the pandemic, when the economy was healthy. Right now, some owners are waiting to find out if they will receive federal stimulus aid before deciding whether to file for bankruptcy protection.” – READ MORE
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