Small Businesses: Provide Relief Through Efficient & Digital Loans

Grim Forecasts - Uncertain Outcomes

A survey published by Main Street America in mid-April 2020 reported that 3.5 million small businesses would close permanently in the following two months, and 7.5 million over the next five months, if business disruption due to COVID-19 continued unabated. While early predictions were alarming, various data show that thankfully, we never reached such grim numbers. However, a few Google searches will show that it’s extremely challenging to obtain accurate numbers, as the research conducted on the small business community is highly variable, based on a multitude of different factors, various survey sizes and types of business categories researched.

In mid-May 2020, it was reported that more than 100,000 small businesses had closed forever due to the pandemic. Nearly two months later, according to the Yelp Economic Average Report, almost 133,000 businesses listed on the Yelp review site remained closed.

Researchers at Harvard believe that the reported data may be underestimated, citing the challenges of obtaining data from business owners who have shut their doors. Christopher Stanton, an associate professor at Harvard Business School, said it could take up to a year before government officials know the true toll the pandemic has taken on small businesses.

Most research reporting on the small business impact of COVID-19 has taken the form of surveys/polls, reflecting business owners’ confidence levels about the future. One such poll was conducted in late July 2020 by the US Chamber of Commerce and Metlife, and even the report’s title paints a contradictory picture: “Small Businesses See Grounds for Cautious Optimism, But Many are Preparing for a Coronavirus Resurgence.” Following are highlights from this poll.

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