WASHINGTON (SBG) – As coronavirus fears grow among Americans across the country, worries also grow for business owners and how this will play out for them.
At HM Manufacturing in Wauconda, Illinois, the orders are slowing down. CEO Nicole Wolter is becoming increasingly concerned about the challenges ahead.
“It’s a scary time to have to redo my benefits package with the employees have to do a hiring freeze, have to do layoffs,” said Wolter.
She’s concerned a big bailout could be a repeat of history that didn’t work out for many small businesses the last time around.
“That was a true failure when they bailed out the auto industry," said Wolter. "The largest companies survived but many smaller companies failed due to the limited scope of the bailout.”
The first draft of the $1 trillion stimulus package proposed by Treasury Secretary Steven Mnuchin sets aside $250 billion for small businesses, $500 billion for individuals through direct payments and a potential payroll tax cut. It also includes $50 billion for the airline industry.
United, Delta, American and Jet Blue have all announced they’ve cut back on flights. President Trump has vowed to help.
“We’re also playing with a lot of numbers,” said Trump. “A lot of very big numbers and a lot of small numbers. We have to help everybody.”
The big decision for Congress at the moment, though, is how to prioritize who gets what and what strings might be attached in terms of how the money can and cannot be spent.
“It isn’t so much about saving the airline for the sake of the airline,” said Senator Mike Rounds (R-South Dakota). “It’s about saving that transportation for the sake of other businesses that require it.”
The restaurant industry is asking for at least $300 billion -- and many more will be asking for help, such as cruise lines, hotels and casinos.
Montana Democratic Senator John Tester says he's concerned about the future of small businesses.
“Those folks who serve food, serve beverages, those hotels, those one man shops, those small businesses, they are the ones that are most likely to close their doors and never open again," said Tester.