INDIANAPOLIS (WTWO/WAWV) – Indiana’s division of the National Federation of Business released its latest survey on COVID-19’s impact on small businesses, warning that 21% of the state’s small businesses fearing closure within six months if economic conditions do not improve. Another 19% of owners anticipate they will not be able to continue operations for more than seven months to a year in the current financial climate.
Only 19% think conditions will improve to normal levels by the end of the year, with 52% anticipating it will take until sometime in 2021 and 20% believing it won’t be until 2022. A mere six percent of owners say that conditions are back to normal now.
In August, 84% of the businesses had exhausted the money borrowed in the Paycheck Protection Program (PPP), with 44% saying they will apply for a second loan and 31% saying they’re considering it.
“The unprecedented and devastating crisis isn’t going away. Many small businesses here in Indiana are still suffering,” said NFIB State Director in Indiana, Barbara Quandt. “While some small business have been able to get back to work, there are other industries still stuck at a standstill and likely will for months to come. For every small family business that is coming back to life, there’s one that is circling the drain. We need to help those small business owners and we need to do it now. Many can’t hold on much longer. They need money to keep their doors open and support their employees and their families.”
Nearly three-quarters (74%) were approved for a loan; 9% were denied and about 18% still have not heard about the status of their loan application.
About one in five small employers (21%) have had an employee take COVID-19 related paid sick leave or family leave as mandated and offered through the Families First Coronavirus Response Act.