From Alignable
Many factors are leading to payment issues among small businesses. Based on other Alignable research, these are just some of the challenges:
- PPP Problems: Over 40% of small businesses failed to apply for Paycheck Protection Program loans as they didn’t believe they would qualify or they didn’t trust the loan forgiveness terms. Some 15% of small business owners tried to get the loans, but were denied or large banks never processed their applications.
- Cash Crunch: 26% are afraid of cash reserves running out.
- Slow Recovery: 56% of open businesses say less than half of their customers have returned.
- COVID-19 Impact Remains Strong: 74% say the virus threat continues to have a negative effect on their businesses.
However, small business owners in industries including financial services, insurance, utilities and real estate have been less affected by COVID-19 and were among the 52% of businesses paying their June rent in full.