Poll: Nearly half of small business owners say lack of money could prevent reopening
CHARLOTTE – As North Carolina and many other states continue to ease orders related to the COVID-19 pandemic so that businesses can reopen, many may not be able to welcome customers again. Why? Cash – its lack – despite the availability of billions in Federal Paycheck Protection Plan loans.
In a survey of over 900 small businesses, based in Charlotte Loan tree says 46 percent of respondents cite lack of funding as the main reason they might not be able to resume operations.
Added to their concerns are questions about whether they will be eligible for a loan forgiveness if they have received PPP loans. And many of the companies surveyed actually got a loan.
While 44% of companies that applied received loans, 3% repaid the funds due to concerns about discounts, which focus on employee retention and how much can be spent on expenses other than wages.
And in businesses that will reopen, 39% of openers said they might not be able to generate enough revenue to “make the reopening worthwhile.” They cited things like capacity limits and the costs associated with cleaning.
“I feel a multitude of emotions,” one respondent told LendingTree. “I have no idea how my salon will remain open without the rents being reduced [and with] fewer customers. Even though we have customers, we have to respect social distances, which equates to less space [and] less reception of customers.