A quarter of small-business owners surveyed nationally said they will have to close unless the economic picture improves in the next six months, according to a survey conducted by the National Federation of Independent Business (NFIB).
The NFIB”™s last survey, in November, found 20% of small-business owners making that claim.
The new survey also found 22% of business owners saying they will be able to operate no longer than seven to 12 months under current economic conditions.
“This is a do-or-die moment for many small- business owners,” said Andrew Markowski, state director of NFIB in Connecticut. “They faced mandated closures in the spring and when they reopened most were not able to make up for the huge losses. Half say they are still down by 75% of last year”™s revenue. Any effort policymakers can put forth to lower their fixed costs or offer temporary support could make the difference in their survival and we would be grateful for it.
“It is important to remember that nationally small businesses create 40% of GDP and about two-thirds of the new jobs during normal times,” he said. “Saving small businesses in our state will help Connecticut”™s economy recover.”
Among the latest survey”™s other findings:
- 91% of Paycheck Protection Program (PPP) borrowers have spent their entire PPP loan.
- 44% of business owners have submitted their PPP loan forgiveness application over the last month, up from 26% last month.
- Almost half of small business owners who have submitted a PPP loan forgiveness application have received final confirmation from the SBA, and over three-fourths of them had 100% of their loan forgiven.
- After using the PPP loan, 22% of borrowers have or anticipate having to lay off employees in the next six months, a slight increase from 19% a month ago.
- 34% of small business owners have applied for an Economic Injury Disaster Loan.
- 19% percent of small employers reported they have fewer employees than they did this time last year, and 11% have significantly less.
