Womply The Economic Apocalypse Stimulus2020 Deck 2020 03
Summary
A 2020 presentation deck from Womply titled as a summary of the economic apocalypse, describing a small business depression as of Friday March 13th. The deck presents Womply as a local commerce platform drawing transaction data from 50+ financial services data partners, and shows state maps of average revenue change for restaurants, travel and tourism, retail and grocery businesses as of eod 3/15 compared with the same week in 2019. It argues the SBA cannot handle the scale or speed of the crisis, citing a House Committee on Small Business report on Hurricane Sandy relief of $779 million with 46 days average processing and a 24% business approval rate. The deck proposes pushing government funding through banks and payment processors directly to small businesses and closes with its data methodology.
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WOMPLY | 2020 Summary of the economic apocalyse We are in a small business depression as of Friday March 13th The old playbook won’t save us: e Monetary policy: Not relevant to small businesses e Demand-side fiscal stimulus: Not relevant if businesses are dead or can’t sell goods and services e SBA: Cannot handle scale or speed of crisis Half of America’s businesses will die in the next 60 days without radical Federal and State intervention The only viable solution is to enlist companies (banks, payment processors, acquirers) in a massive public+private effort to inject supply-side stimulus to keep businesses alive. This could be done within hours or days, using government funds and private data & infrastructure. If we don’t fix this then millions of small businesses will layoff all their employees, default on their accounts payable, rent, credit cards, debts, and taxes. This will cause a simultaneous banking and unemployment crisis, which will hit big businesses too. The recovery will take years because the businesses that are needd to create jobs and get us out of the depression will be dead. WOMPLY Womply: the Local Commerce Platform Developers Advertising Marketing 465.000 SMB accounts rr ee WOMPLY Processor 1 Acquirer 2 Finacial Inst 3 55 exclusive financial integrations Data Account Info Transaction Details ide nity Loyalty Blog 50+ financial services data partners HIS globalpayments bank ms worldpay TSYS Elavdh = -onhAmerjcan’ SE First . e SE /AMeeican — “obamatian wwoverver M&r Fag Citizens Axia phonesWiPe Se lioT ISignoPoy PUUVEl FINANCIAL Ban ELIO TransLink CD) OMEGA Cheats BS systems AYroc un Banking JetPay Ox con Qranum Ss . —_— as = 2 hb ais . q= . : yh. FOUNDRY i : a POLAT tere” © Integrity TRANSFIRST Gy PIVOTAL </-i services — Qscre BUSINESS eunnetonens 5 ul) : = EET croovw S _celero_ Paysafe: = rifone VISA Small businesses are critical to the US economy “$10 trillion in GDP “50% of America’s jobs Womply serves 400 different types of businesses! Not just restaurants: e Hotels Bars Auto-service Gardeners Pool Cleaning Equipment rental HVAC Bike shops Education Professional services WOMPLY It’s a bloodbath. We’ve never seen this before. Retail and Wholesale Businesses cc oC : 2% 7%) & 25%) = z @%) (10%) (18% L re) 20% 18%) (19%) 2% (13%) 1% (20% GA z sm) on) co) (19% (14%) ( O76 2 %) 16% 17%) 21%) (14% ™% (18%) 15% 7%) i i (18%) (5%) (13%) (22%) 12% (15%) (24%) % (2' 3% 19%) (21%) (10%) HM 6%) (7%) 13%) (25%) 24% (4%) (23%) (25%) (16%: Of (11%) 5% (8%) (1%) 3 (21%) 11% (15%) (18%) a) 21%) (16% (20%) 15% a 23%) oH) 2% (18%) (2284 (18% (23%) 24% 5 a%) 21%) 1% : 4%) (19%) 23% (24%) (24%) 1% (22%) 7% (17% (18%) 23% (16%) 7%) 535 | 4% 8%) 15% @%) (17% 14%) (23%) ea 8% 13%) (19%) 14%) (17% 12%) (19%) 3% 1% 10%) 6% 11%) (18%) S% 22% (19%) (20%: (16%) 4% cy iE i (22%) (6%) 16%) (17%) (23%) (2%) (7%) (17%) (22% (22% NO 5%) 5%) (1%) (7%) 19%) 16% (11%) (10%) NE (25%: 16%) 8% 2% (14%) (8%) 10%) (15%) (12%) 23% NH a 24) (15%) 18%) 6% (24% (24% (14% ) i cy 3% 5%) (om) (22%; 11%) (18%) 22% 5% (8%) (23%) 5% % (10% 24%) 16%) (20%) 0% ¢ 15% (6%) (20% (24% (13% 23%) 21%) 19% 0% 19%) (20%) (1% OH (19% 19%) 21% 1 as 1% 5% (22%) 9%) OK 7%) (19% 20%) (17%) 12% 17%) 22% (23%) 3% (4%) (19%) (16% mF 4% (6%) (20%) 17% (24%) (2%) (8%) 0%) 5% (11% > 9%) 9%) (20%) (23%) (13%) (12%) 10%) (17%) al %) 6% (11% (12% sc (18% 3% 0%) (17%) (Ox) ow ( 7%) 21% (25%) 4% (16% (17% 0% (21% 3% $0 (17% 18%) 9% ssi (s%) cs) (17%) (12% TN e% (12% oy 128%] 1%) 16% 9% 4%) 6% (20% (20% 8% (2% om xX (18% 21% 8%) (21%) 18% (21%) 2%) TT % (15%) 8% (25% (15% 5% (24% T 6% 3%) 10% (1%) 2% (15% % (23% (19% VA (13% 9%) 16% 25%) 25 om) (17% 12% vr 9%) 12% 18% 2% 1% 12% WA (17%) 3%) (24%) 14% GB%) (4%) (19%) 25% (4%) ™% (23%) wi 7% 15%) (18%) om % oy) (19%) 4% (15%) 07% (10%) Ww (19% 3%) 5%) (16%) 16% 17%) (os) (11%) (14% (19% 39%) 0%) wy 21% a% 23% 13% co) 3% All States (a1) (15%) (16%) (25%) (34%) 17% (28%) (19%) (26%) (1%) 17%) (12%) (28%) (12%) (20%) (21%) Go here for latest updates: https:/Awww.womply.com/blog/data-dashboard-how-coronavirus-covid-19-is-impacting-local-business-revenue-across-the-u-s/ Ignore Online Business (b/c data is anchored to state of business registration and doesn’t imply card present spending in those locations). If data shows over 100% in losses, that’s due to refunds. WOMPLY Restaurants as of eod 3/15 Map: Restaurants — average revenue last week vs the same week in 2019 WOMPLY Travel & Tourism as of eod 3/15 Map: Travel and tourism businesses — average revenue last week vs the same week in 2019 WOMPLY Retail shops & services as of eod 3/15 Map: Retail shops and services — average revenue last week vs the same week in 2019 Retail & Services Avg. Revenue - Last Week YoY % Change AH Y All Time 12% WOMPLY Retail shops & services as of eod 3/15 Map: Grocery stores — average revenue last week vs the same week in 2019 WOMPLY SBA failed to deploy < $1b effectively during Hurricane Sandy Hurricane Sandy did $75b in damage The SBA was given $779 million to provide disaster relief to businesses and consumers They received 80,000 total loan applications (from businesses and consumers) From the Democrats of the House Committee on Small Business Report: e Application processing delays: 46 days on average e Low approval rates: 24% for businesses e Long delays for disbursement (looks like months!?!) Note that Phase 3 stimulus gives SBA 30 days to set rules for how they will deploy. The SBA couldn’t deploy more than a few hundred million dollars in months. There is simply no way this tiny, underfunded agency can deploy hundreds of billions of dollars. Source: https://velazquez.house.gov/sites/velazquez.house.gov/files/images/SBASandyReport052013.pdf WOMPLY Maybe the SBA disaster loan process is better now, you say? Womply tried applying for an SBA Disaster Loan to understand the process and we haven’t This is one form of many finished it yet because it’s so long. Applications require: e Complete company statement of assets and liabilities e Complete personal statement of assets and liabilities for all owners e IRS forms to request prior tax returns for key individuals and company e Disaster relief statement This is not a knock on the SBA...the agency is just not built for a nationwide crisis of this scale. The people at SBA are hardworking civil servants, they should should be applauded and supported by all Americans. WOMPLY Unsolicited emails coming to Womply about SBA loans We are trying to apply for this SBA Disaster Loan.. and it is a disaster. The application is taking us days to prepare and we know we aren't going to get any help for at least 6 weeks. We have to lay off all of our staff at the hotels, and have never been prepared for 0% occupancy. It is truly an absolute mess. What’s the solution?: Govt money through existing pipes The only viable solution is to push government funding through existing private pipes (banks, processors) directly to small businesses. Card processors alone move trillions of dollars per year (compare that to SBA...). They have the data and pipes to move money fast in a targeted and completely auditable manner. We are working with many payments companies on a solution but we need the government to give SBA the latitude to direct money to intermediaries so the stimulus money actually reaches small businesses. If we fail at this, we will watch the American dream die in front of us over the next 60 days. Here’s our proposal: https://(www.businesswire.com/news/home/20200320005097/en/Womply-Calls-Government-Fintech-Leaders-Provide-Direct We don’t pretend to have all the answers, but we know private companies must be part of the solution. Womply and our partners are ready to help in any way possible. WOMPLY Methodology for maps & charts Womply aggregates transaction data from 50+ processing partners in the US. As such we are uniquely positioned to assess the impact to the US economy amid the COVID-19 health emergency. This data spans hundreds of business categories in every corner of America. ** Please Note ** - Transaction data comes in various frequency from processors, so our data can be delayed up to 4 days (post swipe). - Our window of analysis, as a result, lags 4 days - To adjust for seasonality, we review the prior 7 days compared to the same week the year prior WOMPLY More info We are offering complete and free access to our benchmarking data to government, press, and analysts. Please contact toby@womply.com for help. More data is available on our blog https:/Awww.womply.com/newsroom/blog/ We launched http://Stimulus2020.com in partnership with other companies to support local businesses. Email stimulus2020@womply.com for more info or if you want to help. We will work with anyone to help local businesses during this crisis. WOMPLY
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