Small Businesses Worry About Recovery

By Staff Writer April 08, 2020 730

A new LendingTree survey of more than 1,200 small business owners found that 71 percent worry they’ll never fully recover from the downturn due to the COVID-19 coronavirus pandemic. Nearly half of small business owners have temporarily closed their businesses. They have also laid off workers or reduced hours while trying to source funding to stay afloat. LendingTree conducted an online survey of 1,221 small business owners who had previously applied for funding through LendingTree’s small business lending database. Participants were emailed a link to participate in the survey which was fielded using Qualtrics from March 24-30, 2020.

One percent of small business owners are worried their business will never recoup the losses associated with the COVID-19 pandemic. Business owners in the accommodation/food service and retail trade sectors are among the most likely to fear for their company’s future.

Nearly half — 47 percent — of small business owners surveyed have taken on debt to keep their business afloat during the pandemic. An additional 34 percent attempted to seek financing but were not approved.

Eight in 10 small business owners have “no idea” where to get emergency funding for their business right now while 69 percent of small business owners do not have enough cash on hand to sustain their business for the next 90 days.

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Last modified on Wednesday, 08 April 2020 14:27