How Small Businesses Are Faring, By the Numbers

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How Small Businesses Are Faring, By the Numbers

Postby PinkDiamond » Mon Jun 29, 2020 5:19 pm

Here's information on how businesses are faring that have reopened, and am wondering how our sellers are faring. ;)

How Small Businesses Are Faring, By the Numbers
By Lenore Fedow
June 29, 2020

More than one-fourth of respondents saw a significant or moderate increase in sales as coronavirus-related restrictions eased, according to a June survey by the National Federation of Independent Business.

"Nashville, Tenn.—Small businesses have been hit especially hard by the COVID-19 pandemic, struggling in the face of mandated store closures and sinking sales.

A survey published earlier this month by the National Federation of Independent Business (NFIB) took an in-depth look at how small businesses are faring as we approach month five of coronavirus-related shutdowns in the United States.

NFIB took a random sample of its membership database of about 300,000 small business owners.

It conducted the survey by email in mid-June and received 631 usable responses, meaning surveys in which most questions were answered.

Respondents in the retail and restaurant industry made up 19 percent of the surveyed group, which also included those in manufacturing, wholesale, agriculture, services, and more.

The pandemic has disrupted retailers big and small, forcing them to change the way they operate, from practicing social distancing to implementing strict cleaning procedures.

More than half of survey-takers said changes to their operations were “significant” (23 percent) or “moderate” (32 percent), while 30 percent saw slight changes and 16 percent said operations have not changed.

However, things are looking up as stores gradually begin to reopen.

About 40 percent of respondents said their current sales volume is 75 percent or more of pre-pandemic levels, a jump from 28 percent in May.

Eased restrictions and store reopenings have led to stronger sales for some small business owners, but not across the board.

While 27 percent saw a significant or moderate increase in sales and another 27 percent saw a slight increase, sales levels didn’t budge for 42 percent of small business owners.

The boost from reopenings may be short-lived in places like Texas, where plans to get back to business have been put on hold amid a jump in coronavirus cases.

The financial toll of the virus led many small businesses in need of funds to apply for a Paycheck Protection Program loan, but the program’s rocky rollout caused a slew of problems for business owners and banks alike.

Some of the complaints were addressed with the passage of the Paycheck Protection Program Flexibility Act.

The number of small businesses applying for a PPP loan was up slightly month-over-month, 81 percent in June compared with 77 percent as of May 29.

With the June 30 application deadline looming, only 3 percent of respondents said they would be applying before then.

When applying for the first round of PPP loans, those who had existing relationships with banking institutions were said to be prioritized. (In a Jewelers of America-led webinar in April, Dentons partner Randy Nuckolls noted it may speed up the process if retailers apply via their regular banks.)

Most of the loan applicants surveyed, 85 percent, went through their usual bank.

Nearly all applicants surveyed in June, 97 percent, received their PPP loan. Only 3 percent of borrowers have spent the money and applied for loan forgiveness.

The recent update to the program gave borrowers more ... " ... he-numbers
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