Director of Research and Policy for National Federation for Independent Business Holly Wade joins Yahoo Finance’s Seana Smith and Alexis Keenan to discuss the state of small businesses, as jobless claims rose to 281,000 last week.

Video Transcript

- Well, as the economy really rapidly begins to shut down, many small businesses-- they are struggling to survive at this point. Some are even on the verge of collapsing. For more on this, I want to bring in Holly Wade, NFIB director of research and policy. And we're also joined by Yahoo Finance's Alexis Keenan.

And Holly, we got our first real glimpse just in terms of how the coronavirus is impacting jobs. We got that jobless claims number out this morning. It jumped by 70,000, hitting-- rising all the way to 281,000. When you talk to small businesses, the struggling-- or the struggle that they are facing right now, what are you hearing from them?

HOLLY WADE: We're hearing from our members, small business owners across the country, every day now-- and in increasing numbers, talking about slower sales, the devastating effects that this outbreak is having on them and their business. And they're trying to navigate it as best they can. Some are temporarily closing, hoping to get to the other side of this intact. Some are changing and adjusting their business operations to best deal with the rapidly changing environment. So it is a struggle for an increasing number of small business owners.

ALEXIS KEENAN: Holly, Alexis, here. We're talking about 48 million Americans who work for small businesses. That's nearly half of all US workers. And I know that your firm represents about 300,000 of those business owners. Want to talk about some of these unemployment numbers that we're seeing. I talked to one firm, Emergent Research, a data from that focuses on small business and its economy, saying that in the next two to three weeks, they are expecting over 1 million claims for unemployment. And over the next two to three months that that number-- if things persist as they are today, that that number could go to a third of workers at risks of losing their jobs who work for these small firms.

So can you talk to us a little bit about some of the solutions that you see would be fit for these companies to keep their heads above water?

HOLLY WADE: Right, so as you said, this is just an escalating problem for small businesses. Some of-- I mean, the members that we've talked to, their major ask right now is helping to fill the financing gap. So they're looking for loans available, zero interest loans that might be available to them, grants available to them, to bridge the cash flow issues that they're having.

And in a good economy, cash flow is often difficult for small business owners. And in this economy-- and it's so rapidly changing minute to minute for business owners to try to navigate this-- it is a growing problem. And so that is their biggest ask, is to help them navigate through financially to get to the other side.

- Yeah, Holly, but I want to ask more just about their access to liquidity. We were talking to a guest in the last hour. He was focusing on the manufacturing sector. And he was saying that, obviously, this has been a huge challenge for that industry now for quite some time, just in terms of manufacturers facing, really, just money-- running out of money, not being able to have access to the liquidity that they need at this point. In terms of small businesses, what do you think needs to be done in order to address this issue for them?

HOLLY WADE: Well, I think one of the biggest asks that we're working on is making sure that governors certify their states to allow small business owners to access the SBA Disaster Loan Program. It's available for a handful of owners in certain states that qualify. And broadening that to-- for all small business owners to qualify would be extraordinarily helpful.

And time is of the essence. They're having a hard time right now. The problem's only going to escalate. And they need the relief as soon as possible to help them through this.

ALEXIS KEENAN: Holly, Alexis, again. I want to talk about the relief bill a bit. Your organization was critical that the 500 and over companies were not subjected to a two week mandatory paid leave. Quickly, can you tell us why your position is what it is, that you don't like that part of this new bill?

HOLLY WADE: Certainly. Small business owners-- you know, it's a great benefit to have. Many small business owners can't afford it. Especially now with the ever-changing economic conditions in their area, this is not the time to pile on costly mandates and paperwork burden on small business owners who are having just challenges on the ground, minute by minute, figuring out how to survive in this crisis.

And the mandate and the compliance part of the mandate-- or the paid leave is complicated. And so diverting time-- valuable time of small business owners to compliance of paid leave when they're trying to survive and keep the doors open is an incredible challenge. And that's why we oppose the legislation.

- All right, Holly Wade, NFIB director of research and policy. Thanks for joining us today.

HOLLY WADE: Thank you.