Wednesday, 26 August 2020 18:50

NFSB Survey: 1 in 5 Small Business Owners Say They Will Close If Economic Conditions Don’t Improve Within 6 Months

Written by Bethany Blankley, The Center Square


More than 20% of small business owners said they will have to close permanently if current economic conditions do not improve within the next six months, according to a survey conducted by the National Federation of Independent Business.

The largest small business association in the U.S., headquartered in Nashville, conducted the survey to assess the financial health of small businesses.


The survey found that 21% of small business owners said they will have to close without improved economic conditions within the next six months.


An additional 19% said they will be able to operate no longer than seven to 12 months under current economic conditions.


Holly Wade, NFIB director of research and policy analysis, said that while small businesses are “adapting to the abrupt shifts in consumer spending, managing customer and employees’ health and safety” and complying with state and local mandates has created additional stress.


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


Of the small businesses able to receive a mostly forgivable loan through the Small Business Pay Check Protection Program (PPP), 84% said they have used the entire amount they received.


Nearly half of PPP loan borrowers (47%) anticipate they will need additional financial support over the next 12 months. If eligible, and if offered, 44% said they would apply or re-apply for a second PPP loan.


Most small business owners surveyed said they do not expect business conditions to improve to normal levels until next year at the earliest. Only 19% said they expected conditions to improve to normal levels by the end of 2020.

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