Tags: Coronavirus | smallbusiness | covid | coronavirus | pandemic

Survey: 20 Percent of Small Businesses Will Close If Pandemic Doesn't Let Up

the businesses are closed in new york city
Broadway theaters stand closed along an empty street in the theater district on June 30, 2020 in New York City. (Spencer Platt/Getty Images)

By    |   Monday, 24 August 2020 08:29 PM

About one in five entrepreneurs say their small businesses won't survive if the economic climate doesn't improve over the next six months, according to a new survey.

A poll from the trade group National Federation of Independent Business reported that some businesses expected to stay solvent, while others knew the pandemic would damage them significantly.

“The health crisis is not impacting small businesses equally,” said Holly Wade, NFIB director of research and policy analysis.

About half of the businesses in the survey reported a 25% drop in sales since coronavirus hit, and roughly one-fifth have seen sales fall by more than 50%.

Among the businesses that received Paycheck Protection Program loans, which gave emergency loans to help small businesses pay workers, 84% already used those funds.

About 47% said they were waiting for more help for next year, while 44% said they were waiting to apply for another PPP loan.

"Many of them still need more financial assistance just to keep their doors open and staff on payroll,” Wade said.

But in-fighting among lawmakers in Congress has stalled talks to work on a new stimulus package that would extend the PPP program.

Another problem harming small businesses are the unemployment benefits. Displaced workers could receive $600 in additional weekly benefits on top of whatever the state pays. Republicans have argued that enticement makes it harder to draw employees back to work.

Roughly 32% of those surveyed said the hefty unemployment benefits have made it more difficult to hire or re-hire workers.

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About one in five entrepreneurs say their small businesses won't survive if the economic climate doesn't improve over the next six months, according to a new survey....
smallbusiness, covid, coronavirus, pandemic
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2020-29-24
Monday, 24 August 2020 08:29 PM
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