WASHINGTON, July 29, 2020 /PRNewswire/ -- Nearly half (44%) of small businesses have received delays for existing loan payments as of June, up from only 20% of small businesses surveyed in April, according to new data gathered by SCORE, the nation's largest network of volunteer, expert small business mentors. A third (37%) of small businesses have received new, non-governmental loans, and a quarter (26%) have received improved payment terms from vendors.
Established small businesses (defined as in business for one year or more) are receiving more non-government financial help over time, specifically in the form of delays for existing loan payments, and new loans:
- 44% of small businesses have received delays for existing loan payments as of June, up from 20% in April.
- 37% of small businesses have received new loans as of June, up from 3% in April.
- 26% of small businesses have received improved payment terms from vendors as of June, up from 7% in April.
- 12% of small businesses have received support from crowdfunding or other community requests as of June, up from 3% in April.
- 11% of small businesses have received expanded lines of credit as of June, up from 4% in April.
Half (55%) of established small businesses applied for PPP and 78% that applied received some portion:
- 65% of small businesses that applied for PPP received the full amount requested.
- 13% of small businesses that applied for PPP received a portion of the amount requested.
- 22% of small businesses that applied for PPP did not receive anything.
Since March 2020, roughly half (47%) of established small businesses have let go of employees in some capacity, but 50% hope to hire in a year:
- 37% of established small businesses have furloughed or temporarily laid off employees.
- 34% have made no change.
- 31% have reduced employee hours or pay.
- 10% have fired employees.
- 9% have hired new employees.
Established small businesses are implementing COVID-19 customer communications and adapting their business plans in order to better serve customers:
- 43% of established small businesses have implemented COVID-19 customer communications.
- 27% have focused on new target markets.
- 25% have added telephone appointments.
- 25% have made no changes.
- 24% have changed their business model.
- 23% have added new products or services.
- 20% have added enhancements to their online storefront.
- 19% of startups are adding delivery and pick-up options.
Established small businesses are providing employees with protective equipment (PPE), and revised work policies:
- 57% of established small businesses have provided protective equipment (PPE).
- 50% have revised employee policies.
- 40% have implemented teleworking.
- 25% have implemented employee health screenings.
- 25% have staggered employee schedules.
- 24% have made accommodations for at-risk employees.
- 19% have made no changes.
- 17% are cross-training as backup in case workers are absent.
Small businesses are cleaning more, adjusting spaces and changing hours:
- 57% of established small businesses are deep cleaning.
- 40% have adjusted business hours.
- 37% have limited the number of customers.
- 33% have made changes to the physical space.
- 26% have made no changes.
- 12% have consulted with insurance and lawyers to protect against lawsuits.
- 11% of have found additional suppliers as backup.
Download the infographic for more information on how established small businesses are obtaining financing and adapting their operations during COVID-19.
"Small businesses are beginning to receive the financial assistance needed to offset lower revenues and pay for additional business costs related to COVID-19," said SCORE CEO Bridget Weston. "Still, data shows that small business owners aren't just waiting around for help; they're being proactive by switching up their business plans, targeting new markets and getting free, expert small business help from SCORE."
Since 1964, SCORE has helped more than 11 million aspiring entrepreneurs. Each year, SCORE's 10,000 volunteer business experts provide free small business mentoring sessions, workshops and educational services to more than 260 chapters and 1,500 communities nationwide. In 2019, SCORE volunteers helped to create 29,681 new businesses and 67,706 non-owner jobs.
For more information about starting or operating a small business, or on volunteering with SCORE, visit SCORE at www.score.org. Follow @SCOREMentors on Facebook, Instagram and Twitter for the latest small business news and updates.
Funded in part through a Cooperative Agreement with the U.S. Small Business Administration. All opinions, conclusions, and/or recommendations expressed herein are those of the author(s) and do not necessarily reflect the views of the SBA.