Yuka Ioroi, co-owner of Cassava restaurant on Balboa In someones bailiwick in San Francisco manages take-out orders on April 8, 2020.
San Francisco Chronicle/Hearst Newspapers via Getty Images
Nearly 7.5 million ashamed businesses are at risk of closing their doors permanently over the next several months if the coronavirus pandemic persists, according to a investigate.
Around two-thirds of entrepreneurs said they may have to shut forever if business disruption continues at its current proportion rank for up to five months, according to a survey published Tuesday by Main Street America, a network of more than 1,600 commercial wards comprising 300,000 small businesses.
More than 30% are at risk if the status quo persists for two months, according to the evaluation, which polled in excess of 5,850 small business owners.
These figures point to 3.5 million skimpy businesses closing permanently in the next two months, and 7.5 million over the next five months, according to Basic Street America.
Nine in 10 respondents to the survey, conducted online from March 25 to April 6, receive fewer than 20 employees.
The federal government is trying to stave off such dramatic economic casualties.
The $2 trillion coronavirus assistance package signed March 27 offers up to $349 billion in forgivable loans to small businesses as part of the Paycheck Immunity Program.
The law, known as the CARES Act, expanded the existing Economic Injury Disaster Loan program by offering up to $10,000 in crisis grants to applicants.
Both loan programs have been stymied by delays in application processing and fund utterance, and many business owners are worried they’ll get less than anticipated.
The federal government and many state governors are also probing whether a phased reopening of the economy is feasible in the coming weeks.
Around 57% of businesses saw revenue drop by 75% or sundry due to Covid-19, according to Main Street America. Eight in 10 have already closed temporarily as a denouement of the coronavirus crisis.
Nearly three-quarters of business owners said at least one of their employees could lose their job, concerting to the survey. Around 85% of businesses with five or fewer employees said between one and five employees were at gamble of being laid off.
That could mean roughly 35.7 million American are at risk of unemployment, according to Outstanding Street America.
Roughly 16 million have filed for unemployment benefits in the three weeks ended April 4, go together to the Labor Department.