Impact of COVID-19 & Economic Outlook for Small Business – A Survey Based Study

Abstract

The unprecedented challenges from the Covid-19 pandemic not only continue to be a major public health concern, but also impose serious economic uncertainty on small businesses across the nation. To assess how small businesses² were impacted in the first half of 2020 and gauge their economic outlook for the second half of 2020, I conducted an original survey of 86 companies. The results reveal several important metrics. First, 40% of surveyed companies drastically reduced operations for a duration of 1 to 2 months in first half of 2020, with most resorting to reduction of hours, furloughs, and/or layoffs. Second, 75% of companies sought Paycheck Protection Program (PPP) loans, and every company that applied for PPP received approval. Third, 30% of companies forecast a decrease in revenue and reduction in staffing in the second half of 2020. Fourth, a trend of delayed receivables and increased expenses due to Covid-19 becomes evident.  Fifth, businesses overwhelmingly report an imminent need for a second stimulus relief from Congress to stabilize their operations and to avoid reductions in employment.