Home » Economy » Coronavirus pandemic could force half of small businesses to close within 6 months, study finds
Coronavirus pandemic could force half of small businesses to close within 6 months, study finds
Coronavirus pushes 3.17M more Americans to file for unemployment
FOX Business’ Cheryl Casone breaks down the latest jobless claims report, which came in at 3.17 million.
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More than half of all small businesses in the U.S. are on the brink of going out of business over the next six months if the coronavirus pandemic continues, according to a new report.
New research released Wednesday by the Society for Human Research Management found that 52 percent of small businesses expect to close within six months. Twelve percent said they may be forced to close within one month, and 20 percent said they can only stay afloat for three more months.
"SHRM has tracked COVID-19’s impact on work, workers, and the workplace for months," SHRM President and CEO Johnny Taylor said in a statement. "But these might be the most alarming findings to date. Small business is truly the backbone of our economy. So, when half say they're worried about being wiped out, let’s remember: We're talking about roughly 14 million businesses."
TREASURY SAYS SOME PUBLIC COMPANIES NOT ELIGIBLE FOR SMALL-BUSINESS LOANS AFTER BACKLASH
Despite the government-backed Paycheck Protection Program, which provides forgivable loans to small businesses at an interest rate of 1 percent to help them maintain payroll throughout the crisis, 54 percent of owners reported laying off employees. Fourteen percent said they have laid off all of their employees. Twenty-two percent said they have furloughed workers.