The National Federation of Independent Business (NFIB) in May predicted as many as 50 percent of small businesses in California might close by the end of May.

John Kabateck, California director of the NFIB, told Inside the Issues small business optimism in the short-term dropped 5.5 percent in April to record lows. 

“But that’s the bad news,” he explained. He said long-term, small business owners are excited for sales, hiring, and growth over the next six months. 

“We're excited about that, but I think what we are finding from our own studies and from our research team, is that if we don't see the economy improved, and small businesses getting the help they need past Memorial Day, it could be grim and we could see as much as 50 percent of small businesses closing,” he said. 



He said most parts of California are entering varying phases of reopening, which is allowing those small businesses a chance to keep their doors open as they navigate the challenges of operating while abiding by state guidelines for keeping customers safe. 

“It is confusing for people because the rules are changing and twisting and turning on a daily basis both at a state and federal level,” he said. “I think what we're hoping is that, as this reopening happens, there's more clarity on a county-by-county level and I'm hopeful that people will really understand that we're going to get through this.”

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