Survey Says--Small Businesses Slow to Recover
Small businesses have 'small resources' and the rent is due!
Consider this, the average monthly rent for a small business in Seattle is $7,000.00. Which is no small sum when no money is coming in the front door and expenses are still going out the back door. See below for survey results.
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.
Industries with small business owners struggling to pay rent in full include: retail (Mom & Pop Shops, salons, barbers, florists, etc.), restaurants, construction, arts & entertainment, hotels/motels/B&Bs, and transportation (taxis, Uber and Lyft).
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.
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