The majority of small business owners say that their business has bee greatly affected by the temporary closure of establishments due to the Covid-19 pandemic. This is the latest result of the survey released by Wells Fargo/Gallup Small Business for the period May 29 to June 5, 2020.
16% of the small businesses were closed and the other half were still in operation but of limited workforce. About 34% of the small businesses included in the survey were in business as usual status. However, a big drop in sales resulting in a very low revenue challenge small business owners in terms of payroll, operational costs, and business sustainability if the virus cannot be contained.
How has COVID-19 impacted the operation of your business?
|Business is operating as normal||34|
|Business is operating with reduced staff/reduced hours||27|
|Business is operating but services impacted (offering low-contact services)||23|
|Business is closed until restrictions are lifted||14|
|Business is closed permanently||2|
Based on U.S. small-business owners: WELLS FARGO/GALLUP SMALL BUSINESS INDEX, MAY 29-JUNE 5, 2020
The government already extended its Paycheck Protection Program (PPP), a loan authorized by the Coronavirus Aid, Relief, and Economic Security (CARES) Act, until August 8, 2020. The loan is designed to meet payroll costs to those small businesses that were greatly affected by the virus.