CHARLOTTE, N.C., Sept. 30, 2020 /PRNewswire/ -- As small business
owners continue to navigate the COVID-19 crisis, many are grappling
with significant new challenges. According to a recent
LendingTree survey of almost 1,400 small business owners,
day-to-day business disruptions have spurred unexpected layoffs and
financial concerns. In fact, nearly three-quarters of small
business owners have taken on debt to make up for financial losses.
And few businesses are again fully operational. But it isn't all
doom and gloom, the survey found. The majority of small business
owners still feel optimistic about their future beyond the
pandemic.
Key Findings:
- About 74% of small business owners have taken on debt to
cope with the financial losses due to the coronavirus crisis.
Most notably, 37% took on credit card debt and 28% borrowed from
friends or family.
- Only 10% of small business owners who received Paycheck
Protection Program (PPP) funding said it relieved all the financial
difficulties they're facing. The majority (62%) said the funds
helped somewhat, but 28% said the PPP funds didn't relieve their
difficulties at all.
- Of the 79% of small business owners who suspended or reduced
operations, only 13% have since been able to completely resume
operations. Most (63%) have been able to somewhat resume, while
23% haven't been able to resume operations at all.
- Furthermore, 43% of small business owners said their gross
revenue has decreased by 51% or more due to the
pandemic.
"Only 13% of our respondents have been able to completely resume
operations, which means that almost 9 out of 10 aren't there yet,"
said Hunter Stunzi, senior vice
president of small business and investments at LendingTree. "That's
a real drag on revenue and on their ability to keep and pay their
employees."
Of small business owners who applied for PPP funding, our survey
found that 55% received the funds they were seeking. It's
worth noting that this is far better than the 5% who received
financial relief during the first round back in early April. Be
that as it may, Stunzi likened the program to a temporary
Band-Aid.
"It was really sort of a one-time shot in the arm for a few
months of payroll, utilities or rent," he said. "But now that
they've worked through that and the government has not been able to
get its act together and provide more stimulus to these Main Street
businesses, many are never going to return and are simply going to
go out of business."
To view the full report, visit:
https://www.lendingtree.com/business/small/debt-covid-19-financial-losses-survey/.
Methodology
LendingTree conducted an online survey of 1,397 small business
owners who had previously applied for funding through LendingTree's
small business lending database. Participants were emailed a link
to participate in the survey, which was fielded using Qualtrics
from Sept. 4-11, 2020.
About LendingTree
LendingTree (NASDAQ: TREE) is the nation's leading online
marketplace that connects consumers with the choices they need to
be confident in their financial decisions. LendingTree empowers
consumers to shop for financial services the same way they would
shop for airline tickets or hotel stays, comparing multiple offers
from a nationwide network of over 500 partners in one simple
search, and can choose the option that best fits their financial
needs. Services include mortgage loans, refinances, auto loans,
personal loans, business loans, student refinances, credit cards
and more. Through the My LendingTree platform, consumers receive
free credit scores, credit monitoring, customized recommendations
to improve credit health, and notification when there are
opportunities to save money. In short, LendingTree's purpose is to
help simplify financial decisions for life's meaningful moments
through choice, education and support. LendingTree, LLC is a
subsidiary of LendingTree, Inc. For more information, go to
www.lendingtree.com, dial 800-555-TREE, like our Facebook page
and/or follow us on Twitter @LendingTree.
Media Contact:
Nancy
Jones
Nancy@lendingtreenews.com
View original content to download
multimedia:http://www.prnewswire.com/news-releases/74-of-small-business-owners-took-on-debt-to-offset-covid-19-financial-losses-301142119.html
SOURCE LendingTree.com