In a recent survey from the National Federation of Independent Business (NFIB), business owners reported that if economic conditions don’t rally, one in four will have to close their doors within the next six months.
This is 5% more than a similar survey from the previous month, according to a news release from NFIB.
“We have been more fortunate economically in New Hampshire than other states where more extensive restrictions were imposed on small businesses,” Bruce Berke, NFIB’s state director in New Hampshire, said in the news release. “Certain industries are still suffering because customers are wary of going to restaurants, traveling or visiting amusements and those businesses desperately need financial support.”
In addition, seven to 12 months is the longest another 22% of respondents estimate they will be able to survive.
Of those who borrowed under the Paycheck Protection Program (PPP), the survey found 91% have spent their entire loan. If a second PPP loan were offered, 45% of small businesses would apply or reapply if eligible and another 33% would consider applying.
For one in five small businesses, sales levels have not improved, still hovering at 50% or less than pre-crisis levels. Another 29% reported sales between 51% and 75% of what they were before COVID-19.
“Many small businesses are facing additional challenges right now related to weather conditions and renewed business restrictions across the country,” Holly Wade, executive director of NFIB’s Research Center, said in the news 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.”
Congress approved a $900 billion relief package earlier this week, and President Donald Trump signed it Sunday. The record-breaking 5,593-page legislation will provide funds to individuals and businesses.
“NFIB is grateful to [New Hampshire] Senator Jeanne Shaheen (D) and Senator Maggie Hassan (D) for co-sponsoring The Bipartisan Emergency COVID Relief Act of 2020 which will allow for a second PPP loan to help those small businesses survive,” said Burke in the news release.
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