New study paints dire picture for small businesses in Maine, US
One in four small businesses across the U.S. will have to close in the next six months if the economy doesn’t improve, according to a survey released this week by the National Federation of Independent Business.
The 25% of small business owners who said they’d need to shutter represents a 5% increase from the number who responded that way in a similar survey last month, the federation said in a news release. Another 22% of owners in the new poll indicated they won’t be able to stay in business longer than a year under current economic conditions.
The NFIB, a nonpartisan group representing the country’s small and independent businesses, has conducted 14 of the surveys since the start of the pandemic in early March.
In Maine, 99% of all businesses employ fewer than 500 workers, according to the U.S. Small Business Administration. Small businesses employ a total of 289,000 Maine workers, or 57% of the state’s workforce.
In the recent release, the federation’s Maine director, David Clough, spoke of the economic challenges small businesses face in the state and urged Congress to pass the now-pending Emergency COVID Relief Act.
“We are grateful to the leadership of U.S. Sen. Susan Collins and U.S. Sen. Angus King for his active role on the bipartisan negotiating team,” Clough said. “They have recognized the needs of small businesses in the Pine Tree State, know that many are struggling to survive, and it is important that our small businesses recover and regain financial strength.”
Other highlights of the new NFIB survey:
- The vast majority, 91%, of businesses that have obtained loans through the federal Paycheck Protection Program have spent the loan proceeds.
- If eligible, 45% of small business owners would apply or re-apply for a second PPP loan.
- At 20% of the surveyed businesses, sales levels are half or less than they were before the crisis. Sales are no more than three-quarters of their pre-crisis levels for another 29% of the business owners.
- As COVID-19 vaccines become more available, 36% of small business employers will encourage their workers to get vaccinated.
In a Mainebiz reader poll conducted this week, 70% of 434 respondents said they will encourage employees to get vaccinated against COVID-19. The respondents cited two reasons: “It will accelerate our return to pre-pandemic operations” and “It is good for the health of the entire country.”
Most Recent
Most Recent
0 Comments