Lending Tree did a survey of 1,200 small business owners during Covid 19 and find 71% are worried they won’t make it if this goes on much longer.
Finding financing to stay afloat has been challenging to say the least, 47% of small business owners have taken on additional debt, an additional 34% not able to get approval for a loan. Eight out of ten say they don’t even know where to turn for help.
“We’re trying to communicate to the downtown population, such as it is at this point, to the extent they can, to actually patronize these businesses, at least with carry out, if the business is in fact open,” says Houston Downtown Management District President Bob Eury. The thriving metropolis of Houston, the fourth largest city in the world’s largest economic powerhouse, is a ghost town, the elements of its omnipresent bustle silenced by a virus. “It’s a combination of daytime workers in downtown, which we have very few of right now, the hospitality industry and visitors, and again we have almost none at this point,” he lists, adding that residents who live in Houston are holed up inside.
Effective this week Harris County has launched a $10 million Small Business Economic Assistance Loan Program offering zero-interest, forgivable loans for up to $25,000 to meet ordinary operating expenses.
37% of small businesses say they have had to lay off employees with another 12% saying they’ve had to reduce hours of operation, effectively reducing salaries.