The funding is already insufficient for some firms. Nearly one in five companies that received PPP funds terminated at least one employee in May and early June, and about half rehired those workers in that period, according to data from payroll and human-resources firm Gusto.
Even though policy makers tweaked the PPP program in June, including extending the time for companies to use their funds through the end of the year, “it may not be enough,” said Daniel Sternberg, head of data science at Gusto, which works with about 100,000 small businesses.
Meanwhile, economic activity in Texas, Arizona, and Florida has flat-lined or even started to decline from an earlier period of improvement, as virus cases and hospitalizations jumped in recent weeks, according to a Jefferies analysis of Homebase and Google data.
And that could mean more uncertainty for next month’s report.
This article was provided by Bloomberg News.