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

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.