With congressional Democrats still blocking more aid for an emergency fund to help small businesses, a new survey Tuesday shows that one in three small companies have permanently laid off workers, furloughed employees or reduced their entire workforce.
The poll of 500 small firms nationwide, conducted by the Small Business Majority, found that one in three small businesses have already closed due to the coronavirus crisis, with another 14% planning to do so.
Of employers who have laid off staff, 40% said the layoffs are permanent.
In a similar survey, the National Federation of Independent Business found that about half of small employers say they can survive for no more than two months under current conditions, and about one-third believe they can remain operational for three to six months.
SBM founder and CEO John Arensmeyer said small business owners also are reporting that government aid from the $350 billion “paycheck protection program” and other emergency relief isn’t enough, and isn’t reaching companies in time.
“Nine out of every 10 businesses have been impacted, but only a small fraction of those have received the help they were promised,” Mr. Arensmeyer said. “While Congress has already recognized gaping holes in PPP, simply plugging these gaps will not be enough. What small businesses need is expanded relief programs that include direct, unrestricted grant assistance.”
Rebecca Winters and Lauren Fields, owners of the Lowcountry Children’s Co-op in South Carolina, told the survey that they had hoped applying for PPP “would be straightforward and help would be on the way quickly.”
“However, what we experienced was anything but simple,” they said in a statement. “After getting the runaround from three different banks, we were finally able to submit an application. Now, we worry that funding for the program will be gone before our application is processed and the loan is received. For businesses like ours to make it, Congress needs to pass additional unrestricted grant assistance before it is too late.”
House Speaker Nancy Pelosi and Senate Minority Leader Charles E. Schumer on Monday reiterated their demands for hundreds of billions in additional spending, beyond the $250 billion request that the administration wants to add to the PPP fund. Negotiators hit an impasse on Monday.
The House is not scheduled to return to Washington until May 4.
• Dave Boyer can be reached at dboyer@washingtontimes.com.
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