NFIB survey: Economic conditions improving slightly but some businesses anticipate closing if they don’t get better
(The Center Square) – Thirteen percent of small business owners will close down in the next six months if economic conditions do not improve over the next six months, according to the latest survey from the National Federation of Independent Businesses (NFIB) Research Center. That’s down from 25% in December.
“The take away from this survey may sound like there’s little movement towards recovery for many small businesses, but the numbers show that Kansas’ economy is improving,” Dan Murray, NFIB state director in Kansas, said in a statement. “Three months ago, 25% of small business owners said they would have to close if the economy didn’t pick up in the next six months. Now that number is 13%. While the number is still too large, it’s a step forward in the right direction.”
Also from NFIB’s survey:
73% of businesses that applied for Paycheck Protection Program (PPP) loan forgiveness have received it from the SBA.Of those businesses that received a first-draw PPP loan in 2020, 42% have already applied for a second-draw PPP loan and 2% are planning to apply for one.Another 7% are considering whether to apply for a second-draw PPP loan.78% of those who have applied for a second-draw PPP loan have been approved and 1% were denied.Sales levels are 50% or less than they were this time last year (2020) for 22% of small businesses with another 21% at sales levels of 51%-75% of pre-crisis.35% of owners are back or nearly back to where they were with sales between 76%-100% of levels in 2019 with another 23% exceeding sales levels during this time in 2019.15% of owners anticipate they will be able to operate no longer than 7-12 months under current economic conditions.Just under three-fourths (72%) are better situated and do not anticipate any near-term problems.12% of owners anticipate it taking until the first half of 2021 for economic conditions to improve and 34% anticipate sometime in the second half.About one-third (32%) of owners are less optimistic and expect conditions not to fully improve until sometime in 2022 and 11% after 2022.
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