If you are looking to predict the shape of the US economic recovery — be it V, W, L or even K — don’t look at the markets. Look instead at the small- and medium-sized businesses that represent 50 per cent of employment in the country. They are the best economic indicator in America right now. They are also in trouble.

More than 70 per cent of them have been helped by emergency benefits since the start of the pandemic. But those benefits end this month — even as the typical small business only has enough cash reserves to cover two weeks of costs in lieu of any revenues. At the same time, the Paycheck Protection Program, or PPP, will return to its pre-Covid-19 levels by the end of July. That means that unemployment benefits will shrink to around 40 per cent of what they are now, with a major impact on consumer spending.

Assuming no other fiscal stimulus or aid, this combination will lead to a new wave of small business failures. I worry that some of my favourite local establishments will be among them. Down the street is a wonderful movie theatre-cum-restaurant-bar called the Nitehawk, which shut its doors in March. It has since taken to trying to raise money to support its staff via the sale of online gift certificates (to be redeemed in some optimistic future) and crowdfunding. When I checked a few days ago, they were still $13,000 short of their $40,000 goal. That may be because the neighbourhood is similarly funding numerous other local establishments, from bistros to nail salons. The signage outside the Nitehawk reads: “See you on the other side.” But will we?