FEDERAL HELP MAY be on the way for small business owners suffering from the economic downturn caused by the COVID-19 pandemic. However, many of those businesses remain uncertain that they will survive, anyway, according to a survey by LendingTree.com.
The survey of more than 1,200 small business owners found that 71 percent worry they’ll never recover from the downturn. This despite the passage the Coronavirus Aid, Relief, & Economic Security Act, a $2.2 trillion stimulus package signed into law March 27 by President Trump that includes $349 billion in small business loans.
“Business owners are holding on by a thread as more governors join the long list of states closing non-essential businesses,” LendingTree said in a press release on the survey. “Nearly half of owners have temporarily closed their businesses, our survey found. They have also laid off workers or reduced their hours and sought funding, often unsuccessfully, to stay afloat.”
Lodging and restaurant business owners, along with retail outlets, are the most concerned with their future. The survey found that 47 percent have taken on debt to keep afloat during the pandemic.
“An additional 34 percent attempted to seek financing but were not approved,” the release said. “Eight in 10 have ‘no idea’ where to get emergency funding for their business right now. And, 69 percent of small business owners do not have enough cash on hand to sustain their business for the next 90 days.”