US small business owners are suffering. As COVID-19 lays waste to the US economy, small businesses bear the brunt of the damage. A recent Goldman Sachs survey says that small businesses believe they have no money and time left. Their government assistance is about to run out. With more shutdowns looming, they are also running out of time.
How Did the Pandemic Affect US Small Business Owners?
CNN reports the government gave small businesses money. This money came from programs like the Paycheck Protection Program. However, the money was only supposed to cover ten weeks of business expenses. They had to pay their workers while keeping the business alive. But it’s been more than ten weeks since COVID-19 appeared.
With no end in sight to the coronavirus surge in the United States and with the possibility of more shutdowns or curtailed activity looming, time and money are running out for many small business owners https://t.co/giyIDVbbIq
— CNN Business (@CNNBusiness) July 16, 2020
What Are the Results of the Goldman Sachs Survey of Small Business Owners?
Now, 84% of small businesses say that by August, they’ll have spent all their federal loan money. Their owners also face a sharp drop in sales because of the pandemic. Over 60% of them said their revenues dropped to “less than three-quarters” of their usual profits.
Likewise, only 16% of them believe they can survive without more government relief. A dismal 37% still think they can weather more pandemic-related shutdowns. In all, 91% of the respondents said they need more federal assistance.
Will These Small Business Owners Get More Government Loans?
The Paycheck Protection Program will expire on August 8. Currently, businesses are only entitled to one loan. However, lawmakers are debating whether they can do more to support struggling companies.
Right now, COVID-19 looks like it will never go away. Small business owners face an uncertain future. Not a few of them will have to shutter their shops for good.
