Although more businesses have seen financial support through PPP than last month, owners still worry about reduced profits amid increased safety measures
Even as states and cities slowly allow more businesses to reopen, many entrepreneurs are anxious about doing so. Nearly half of small business owners worry they cannot afford to resume normal operations following mandated closures to slow the spread of COVID-19, according to LendingTree latest survey of small business owners. Approximately 46% of small business owners cite funding as the primary obstacle to reopening, and that once open, increased health and safety measures could further stifle sales.
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Key findings:
- Almost 6 in 10 small business owners will reopen as soon as they’re allowed. However, 15% said they’ll wait a little longer to open and another 26% aren’t sure when they’ll ever reopen.
- Fewer customers and fewer sales are expected by 46% of small business owners upon reopening.
- Just 17% think they’ll get the same number of customers spending the same amount as they did prior to the coronavirus pandemic.
- Not having the funds needed to reopen is the primary reason small business owners would not reopen once stay-at-home orders are lifted. They wonder if profits would warrant reopening as they also worry about the safety of themselves and employees who may not want to return.
- About 63% of small business owners surveyed have applied for funding through the Paycheck Protection Program.
- Of those who applied for a PPP loan, 44% have received funding. This is a significant jump from our April survey, where we found just 5% of those who applied were approved.
- However, more than half of business owners who received PPP funding are nervous they won’t meet forgiveness criteria. Some are more worried than others: 24% are “very concerned,” while 29% are “a little” concerned.
Small business owners have reservations about reopening
Although most small business owners are eager to reopen once their cities and states fully lift restrictions, some entrepreneurs worry about the lingering effects of the pandemic. Just 11% of respondents said they have no anxiety about reopening.
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