Surveys

How Small Businesses Are Faring, By the Numbers

SurveysJun 29, 2020

How Small Businesses Are Faring, By the Numbers

A survey by the National Federation of Independent Business took a look at COVID-19 business disruptions, PPP and EIDL loans, and more.

20200629_Open_Sign.jpg
More than one-fourth of respondents saw a significant or moderate increase in sales as coronavirus-related restrictions eased, according to a June survey by the National Federation of Independent Business.

Nashville, Tenn.—Small businesses have been hit especially hard by the COVID-19 pandemic, struggling in the face of mandated store closures and sinking sales.

A survey published earlier this month by the National Federation of Independent Business (NFIB) took an in-depth look at how small businesses are faring as we approach month five of coronavirus-related shutdowns in the United States.

NFIB took a random sample of its membership database of about 300,000 small business owners.

It conducted the survey by email in mid-June and received 631 usable responses, meaning surveys in which most questions were answered.

Respondents in the retail and restaurant industry made up 19 percent of the surveyed group, which also included those in manufacturing, wholesale, agriculture, services, and more.

The pandemic has disrupted retailers big and small, forcing them to change the way they operate, from practicing social distancing to implementing strict cleaning procedures.

More than half of survey-takers said changes to their operations were “significant” (23 percent) or “moderate” (32 percent), while 30 percent saw slight changes and 16 percent said operations have not changed.

However, things are looking up as stores gradually begin to reopen.

About 40 percent of respondents said their current sales volume is 75 percent or more of pre-pandemic levels, a jump from 28 percent in May.

Eased restrictions and store reopenings have led to stronger sales for some small business owners, but not across the board.

While 27 percent saw a significant or moderate increase in sales and another 27 percent saw a slight increase, sales levels didn’t budge for 42 percent of small business owners.

The boost from reopenings may be short-lived in places like Texas, where plans to get back to business have been put on hold amid a jump in coronavirus cases.

The financial toll of the virus led many small businesses in need of funds to apply for a Paycheck Protection Program loan, but the program’s rocky rollout caused a slew of problems for business owners and banks alike.

Some of the complaints were addressed with the passage of the Paycheck Protection Program Flexibility Act.

The number of small businesses applying for a PPP loan was up slightly month-over-month, 81 percent in June compared with 77 percent as of May 29.

With the June 30 application deadline looming, only 3 percent of respondents said they would be applying before then.

When applying for the first round of PPP loans, those who had existing relationships with banking institutions were

said to be prioritized. (In a Jewelers of America-led webinar in April, Dentons partner Randy Nuckolls noted it may speed up the process if retailers apply via their regular banks.)

Most of the loan applicants surveyed, 85 percent, went through their usual bank.

Nearly all applicants surveyed in June, 97 percent, received their PPP loan. Only 3 percent of borrowers have spent the money and applied for loan forgiveness.

The recent update to the program gave borrowers more time to distribute the funds. Instead of the initial eight weeks, recipients now have 24 weeks or until Dec. 31, whichever is earlier, to allocate the money.

Of the PPP loan borrowers in the NFIB’s June survey, 59 percent said they will take the extra time while 41 percent will spend the money within the eight-week time frame.

The PPP update also allows more of the money to be used for non-payroll expenses and added two new exemptions related to full-time employees and loan forgiveness.

The changes were considered “very helpful” for maximizing loan forgiveness by 40 percent of borrowers while 19 percent found them to be “moderately helpful.”

Seventeen percent said they were “somewhat helpful” while 6 percent described them as “not helpful.”

Though the PPP was set up so employers could retain their employees, that may not be possible for every loan recipient.

Of the borrowers surveyed, 14 percent expect to lay off at least some employees even after using the loans.

Half of that segment expects to lay off one or two employees while 12 percent expect to lay off 10 or more employees.

In addition to PPP, small business owners may have been eligible for The Economic Injury Disaster Loan (EIDL) program run by the U.S. Small Business Administration.

Thirty-five percent of respondents applied for an EIDL loan with most still waiting for the loan to be processed, according to the survey.

A total of 38 percent of respondents said they’ve already received their loans.

The EIDL emergency grant was also available, which allows a business that has applied for a disaster loan to get an immediate advance of up to $10,000, which can be used for payroll purposes.

Of those who requested a grant, 72 percent said they’ve received it.

Of the respondents who applied for a PPL loan, an EIDL loan, or both, 47 percent expect to need additional financial support over the next 12 months.

More than half that segment, 56 percent, expect to need less than $50,000 to keep things afloat, but 27 percent expect to need more than $100,000.

As for taxes, a new deferment allows businesses to defer the deposit and payment of the employers’ share of Social Security taxes until Dec. 31.

Around 41 percent of respondents were familiar with the new provision, with 6 percent already deferring.

Almost two-thirds of respondents said they didn’t plan to defer tax payments, while 5 percent said they do plan to do so 31 percent said they might.

Top economists are expecting the U.S. economic recovery to be slow and have said small businesses are especially in danger of financial distress.

At his semiannual monetary policy report before Congress earlier this month, Federal Reserve Chairman Jerome Powell said there was “significant uncertainty” surrounding the pace of economic recovery.

“If a small or medium-sized business becomes insolvent because the economy recovers too slowly, we lose more than just that business,” he said. “These businesses are the heart of our economy and often embody the work of generations.”
Lenore Fedowis the senior editor, news at National Jeweler, covering the retail beat and the business side of jewelry.

The Latest

The Nordstrom Men’s Store in New York City
MajorsDec 24, 2024
Nordstrom Family, Partner to Take Retailer Private in $6B Deal

Members of the founding family have partnered with Mexican retail company El Puerto de Liverpool to acquire Nordstrom.

Boucheron Las Vegas Storefront
MajorsDec 24, 2024
Boucheron Bets on Las Vegas

The brand has opened its second U.S. location in the Fontainebleau resort and casino.

B & B Fine Gems gemstone suite
EditorsDec 24, 2024
The Spectrum Jewels I Want to Find Under the Tree

Associate Editor Lauren McLemore highlights pieces from the AGTA Spectrum & Cutting Edge Awards she’d be thrilled to unwrap on Christmas.

ride_or_die_1872x1052.png
Brought to you by
A Diamond Is Forever Celebrates "Forever Present" Holiday Campaign

A Diamond is Forever hosted a holiday celebration in honor of their new marketing campaign, ‘Forever Present.’

Gemfields emeralds
SourcingDec 24, 2024
Gemfields to Temporarily Suspend Emerald Mining

The move is one of several cost-cutting measures outlined by the company as it faces a weaker luxury market and other challenges.

Weekly QuizDec 19, 2024
This Week’s Quiz
Test your jewelry news knowledge by answering these questions.
Take the Quiz
Tyrese Maxey The 1916 Company campaign
IndependentsDec 23, 2024
Philadelphia 76ers’ Tyrese Maxey Stars in The 1916 Company’s New Campaign

The retailer’s “On the Clock” campaign celebrates how time, precision, and purpose come together.

Jewelry by Sorellina, Francesca Villa, Cece Jewellery, Retrouvai, Ray Griffiths, Cartier, Cocoerow Fine Jewelry, and Gumuchian
EditorsDec 23, 2024
My Favorite Piece of the Week Jewels of 2024

Associate Editor Natalie Francisco chose her 12 favorite Piece of the Week picks from the year gone by.

me_myself_and_I_1872x1052 .jpg
Brought to you by
De Beers Group Launches Holiday Campaign for Natural Diamonds

‘Forever Present’ campaign revives the iconic A Diamond is Forever tagline and celebrates the diamond dream.

GIA emerald report
GradingDec 23, 2024
GIA Adds Filler Identification to Emerald Reports

Lab clients have the option to request this addition on their emerald reports.

Ella Klein Interns Jamie Dunton and Gabriella Botelho
Events & AwardsDec 20, 2024
Two Participants Complete Inaugural Ella Klein Internship

Jamie Dunton and Gabriella Botelho are the first graduates of the program, created by the WJA Foundation and Julius Klein Diamonds.

Retrouvai Green Sapphire and Diamond Heirloom Bezel Ring for Charity
CollectionsDec 20, 2024
Piece of the Week: Retrouvaí’s Ring for Charity

In the spirit of giving, Retrouvaí will donate $4,000 from the sale of this ring to the Los Angeles Regional Food Bank.

DeVries Jewelers
IndependentsDec 19, 2024
Michigan’s DeVries Jewelers Unveils New Location in Time for the Holidays

Co-owner Dan DeVries shared what it’s like moving into a space triple the size of its old store and how it feels to be a “real jeweler” now.

State Property Gardens Collection Campaign
CollectionsDec 19, 2024
State Property Transforms Spain’s Generalife Gardens into Jewelry

Along with the latest “Gardens” collection, the brand has released limited-edition designs offering more indulgent pieces.

Two people in a rowboat
CrimeDec 19, 2024
Alleged Jewelry Thieves Attempt Rowboat Escape

The man and woman are accused of stealing jewelry from a shipping container then trying to flee by paddling a small boat out into a bay.

2488-carat diamond found in Botswana
SourcingDec 19, 2024
The Second-Largest Diamond Ever Found Now Has a Name

The 2,488-carat diamond recovered from a mine in Botswana has been dubbed “Motswedi” while its 1,094-carat sibling is “Seriti.”

Rough rubies
SourcingDec 19, 2024
Gemfields Reports Record Ruby Auction Results Despite Challenges at Source

The average price per carat hit a record high for the miner, which said it remains unaffected by the conflict in Mozambique.

alexandrite ring
AuctionsDec 18, 2024
Alexandrite Ring Sells for Record-Setting $1.9M at Sotheby’s

The nearly 17-carat stone made history for the color-change gem that, according to the auction house, is experiencing a “notable surge” in the market.

Tiffany & Co. pocket watch gifted to captain of the Carpathia
WatchesDec 18, 2024
Historic Titanic Pocket Watch Winds Its Way Back to Tiffany & Co.

More than a century after survivors gifted a Tiffany timepiece to the captain of the ship that rescued them, the jeweler has reclaimed it.

Picchiotti Spotlight Campaign Video Still
TechnologyDec 18, 2024
Picchiotti Utilizes AI in ‘Spotlight’ Video Campaign

The videos highlight how pieces from the “Xpandable” and “Reversible Xpandable” collections put the wearer in the spotlight.

Steve Feldman
IndependentsDec 18, 2024
Industry Veteran Steve Feldman Set to Retire

Feldman reflected on 45 years in the jewelry industry and clarified that it’s not a total retirement.

Chanel Quilted Stars Necklace
Events & AwardsDec 17, 2024
Chanel to Receive Gem Award for High Jewelry Excellence

The luxury brand is being honored for excellence in high jewelry design in its “Haute Joaillerie Sport” collection.

Frank Circelli
SourcingDec 17, 2024
Frank Circelli, Founder of Gem Shopping Network, Dies at 75

Circelli was a pioneer in the world of TV shopping who is remembered for his passion for gemstones and his big personality.

Blue diamond ring
AuctionsDec 17, 2024
Blue Diamond Fetches $8.8M at Christie’s

The nearly 6-carat stone headlined the recent jewelry auction, which also featured Mica Ertegun’s jewelry.

Stock image of a gavel, handcuffs, and books
CrimeDec 17, 2024
‘Black Bin Crew’ Robbers Get 14-16 Years in Prison

The three men, who got their nickname because they’d toss the jewelry they stole into black plastic bins, were arrested back in August.

Cover of the new book “The History of Diamond Engagement Rings: A True Romance”
TrendsDec 16, 2024
Marion Fasel’s New Book Delves Into the History of Engagement Rings

“The History of Diamond Engagement Rings: A True Romance” is a 128-page small-format book containing more than 165 images.

Rolex store on Rodeo Drive
WatchesDec 16, 2024
Take a Look Inside the New Rolex Boutique on Rodeo Drive

Gearys opened a 6,200-square-foot Rolex store with a design that pays homage to the brand’s connection to the ocean.

GCAL 8X pear and marquise-cut diamonds
GradingDec 16, 2024
GCAL By Sarine Expands 8X to 2 More Fancy Shapes

The diamond cut grade is now available for marquise- and pear-shaped diamonds.

×

This site uses cookies to give you the best online experience. By continuing to use & browse this site, we assume you agree to our Privacy Policy