71% of small businesses worry they never recover from coronacrisis

More than 1,200 small business owners took part in the survey

business owners

Over 70% of small businesses worry they never recover from coronacrisis. Source: shutterstock.com

According to the LendingTree survey, almost half of small business owners temporarily closed their businesses. What is more, 71% of them worry they’ll never recover from the downturn caused by COVID-19.

The report also found that 47% of small business owners have taken on debt to keep their business afloat during the crisis.

Along with that, 8 in 10 business owners have no idea where to get emergency funding for their business right now.

At the same time, 69% of small business owners surveyed don’t have enough cash on hand to sustain their business for the next 3 months.

Small businesses in virtually every industry and state have been hit hard by the coronavirus, and some will never reopen. Unfortunately, attempts by lawmakers to clear a path for rapid funding have so far fallen short as too many businesses are unsure or unable to access funds fast enough to save jobs. Lenders are confused by the evolving SBA rules and systems adequate to process the overwhelming demand. Technology-enabled non-bank lenders have not yet been deputized to be part of the solution, but that's an avenue that should be considered
Hunter Stunzi, SVP of Small Business and Investments at LendingTree

As to the ways of how business owners adjust their workers to cope with the virus outbreak, 37% of them laid off the employees. Meanwhile, 43% of small business owners decided to reduce working hours for their employees. Another 12% announced pay cuts for the workforce.

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