The National Federation of Independent Business’ (NFIB) research center this week released a national survey on the state of small business amid the ongoing COVID-19 pandemic.
The Paycheck Protection Program (PPP) loan application is set to close on August 8 after Congress extended this deadline to allow more small business owners to participate.
In a release about the survey results, the NFIB stressed that more federal relief will be needed moving forward.
The survey said that 71% of small business owners have now used their entire PPP loan, and the NFIB advised that the rest “are likely not far behind.”
Unfortunately, a sizable portion of small business owners (21%) have laid off or anticipate having to lay off employees even after using their PPP loan.
In total, almost half (46%) of PPP loan borrowers anticipate needing additional financial support over the next 12 months.
“Current economic conditions are putting significant stress on small business owners struggling to balance lower sales, expenses, and longer-term sustainability,” stated Holly Wade, NFIB director of Research & Policy Analysis. “Even for those owners who have exhausted their PPP loan, the economic conditions have not yet returned to levels that can support business activity for many.”
Approximately 23% of small business owners report that they will have to close their doors if the current economic conditions do not improve over the next six months.
NFIB Alabama State Director Rosemary Elebash commented, “What we’re hearing from our members in Alabama is that additional help is needed if they’re going to get through this. Business is better than it was a few weeks ago, but we’re still not back to pre-pandemic levels, and a shift toward online learning means parents aren’t spending as much on school clothes ahead of the fall semester.”
However, the news from the survey is not all bad.
About 46% of small business owners advised sales are nearly back to where they were before the pandemic hit, with some even exceeding pre-COVID levels. Another 32% of small business owners reported sales levels of 50-74% from last year.
You can view the full survey results here.
Sean Ross is the editor of Yellowhammer News. You can follow him on Twitter @sean_yhn
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