The National Federation of Independent Businesses (NFIB) Research Center released a new survey focusing on the impact COVID-19 shutdowns have had on small businesses. It is the association’s 14th such survey since March.
About 25 percent of small-business owners surveyed said they will have to close their doors in the next six months if economic conditions do not improve. This is up five percent from the month before.
Another 22 percent of respondents speculated they have around seven months to a year left under current conditions.
“Many small businesses are facing additional challenges right now related to weather conditions and renewed business restrictions across the country,” NFIB Research Center Executive Director Holly Wade said in a release. “The next few months might prove to be the most difficult time for small businesses since the initial shutdown last spring. It is crucial that Congress provides financial relief for small businesses as we head into the winter months.”
The survey also focused on Paycheck Protection Program (PPP) loans.
Ninety-one percent of borrowers reported spending their entire loan. Forty-five percent of small-business owners said they would apply for a second PPP loan, while 33 percent said they would consider it.
Over 75 percent of those who applied for PPP forgiveness had the entire loan forgiven. Sixteen percent had between 91 percent and 99 percent forgiven.
The amount of those who requested forgiveness jumped up to 44 percent, an increase of 26 percent from the month before. Of the remaining PPP participants, 36 percent reported they are not ready to apply. Twenty percent said they are ready to apply, but their bank is not yet accepting their application.
Twenty-two percent of borrowers still anticipate having to lay off employees in the next six months. This is up from 19 percent a year ago.
Nineteen percent of small employers surveyed said they are very concerned about their employees contracting COVID-19. Fifty-six percent of those polled plan to get vaccinated.