Emergency Relief $35 Million for small and mid-sized businesses

12/23/2020

885,000

The number of Americans filing new claims for state unemployment benefits climbed to a seasonally adjusted 885,000 in the week ending Dec 12, the highest level since early September, the Labor Department reported. The figure is an increase of 23,000 from the previous week’s revised level. The initial jobless claims brought the total reported during the crisis to roughly 71.4 million — the number has remained above the pre-pandemic record for 39 straight weeks. According to WSJ, as of last week, the total of Americans receiving unemployment benefits declined to 5.5 million. The figure came below economist estimates and down sharply from its peak of nearly 23 million in May. Furthermore, for the week ending December 12, 53 states reported 455,037 workers applied for PUA (Pandemic Unemployment Assistance), a program for the self-employed and gig workers, the report shows.

$35M

In Connecticut, just over one-third of small businesses have closed since the coronavirus pandemic hit in March, the higher percentage of closures than the national average and surrounding states, The Wall Street Journal reported. Restaurants are among the hardest hit by the pandemic. The state lost about 600 restaurants. Connecticut lost 1,600 payroll jobs in November 2020 — after a revised 11,500 increase in October. Nearly 20,000 businesses applied for a $50 million small business grant program created by the state this year, but the program is no longer accepting applications, said David Lehman. However, Connecticut Gov. Ned Lamont announced a new federally-funded grant program that will distribute $35 million in emergency relief grants to small and mid-sized businesses hard hit by COVID-19 disruptions and restrictions.

850

Marriott International, the world’s largest hotel company is planning to lay off 850 employees from its hotel in Times Square amid the ongoing impacts of the Covid-19 pandemic, The Wall Street Journal reports. Earlier in March, the company furloughed over 1,200 employees at New York Marriott Marquis as a surge in coronavirus infections triggered the closure of nonessential businesses and tourist spots. Last month, Marriott said in a third-quarter report that its revenue per available room fell 65.9 percent worldwide, 65.4 percent in North America and 67.4 percent outside North America, compared to last year’s third quarter. The company reported net income totaled $100 million in the 2020 Q3, compared to $387 million in the year-ago quarter. However, New York City’s hotel industry has been particularly hard-hit by the pandemic compared to the rest of the country, as travel has ceased, the report shows.

1.1%

U.S. retail sales saw a 1.1% month-over-month decrease in November, the biggest drop in 7 months and a troubling sign for retailers and the state of the U.S. economy, the U.S. Commerce Department reported. The report shows that sales were down sharply at all types of retailers last month, including clothing and accessory stores saw a 6.8% decrease from October, department stores (7.7%), sporting goods stores (0.6%), electronic and furniture stores fell 3.5% and 1.1% respectively. Restaurant sales fell 4% from October, and sales are down 17.2% from this time last year. The few bright spots were online and mail-order sales, which rose a modest 0.2%, supermarket sales, up 1.9%, motor vehicle & parts dealers (6.0%), and sales at home improvement stores, which were up 1.1%, according to the report. However, the retail sales in November were still close to 9% higher than they were a year ago, The National Retail Federation reported.

0.4%

Industrial production in the United States rose 0.4% in November as both manufacturing and mining posted gains, the Federal Reserve announced in a report. The index has recovered much of its 16.5% decline from February to April and is still about 5% below its level in February before the pandemic hit. Manufacturing output rose 0.8% for its seventh consecutive monthly gain. Mining production, which includes oil and gas extraction, increased 2.3% after a 0.7% decline in October. Production of motor vehicles and parts rose 5.3% — the biggest monthly increase since a 31% surge in July. The output of utilities declined 4.3% while capacity utilization rose 0.3 percentage point in November to 73.3%, but still below the pre-pandemic rate of 76.9% in February, according to data from the Federal Reserve.

1.1%

Mortgage applications in the United States increased 1.1% in the week ending Dec 12, rebounding from two straight weeks of declines, according to data from the Mortgage Bankers Association (MBA). Mortgage rates have now set a 15th record low for 2020. Mortgage applications to purchase a home rose 1.8 percent, up 26 percent year-on-year while the refinance index increased 1 percent from the previous week and was 105% higher than this time in 2019. The average contract interest rate for 30-year fixed-rate mortgages rate decreased to 2.85% from 2.9% — a record low. In November, mortgage applications for new homes rose about 35% over 2019 but fell 16% from October. However, December is not typically a strong month for home sales, but demand continues to surge as Americans keep working from home.

47

Meanwhile, we have a new Guinness World Record. A man in the US named David Rush said that he stacked 79 poker chips in one minute for a world record- beating the previous record of 75. David said he used only one hand to create a stack of 79 poker chips. He has broken more than 150 Guinness records for juggling, balancing, and many more with a mission to promote a STEM and growth mindset, according to the UPI. Rush said the accomplishment marked his 47th Guinness record set in the year 2020. Rush said he is aiming toward reaching 52 before the close of the year.