While many small businesses have benefited from short-term aid, such as federal loans from the Paycheck Protection Program, that money was only intended to cover 10 weeks payroll and other expenses.
Now 84% of small businesses say they will have depleted their PPP loans the first week of August, according to a survey last week of 1,500 companies that participated in a Goldman Sachs training program.
The question is: what now?
More than 60% of the respondents. He said his income is still less than three-quarters of what it was before the pandemic.
Only 16% said they are very confident that they can keep payroll without further help from the government. And only 37% said their business can survive another Covid-related shutdown.
The situation is worse for black business owners. A third (34%) surveyed said they have seen less than a quarter of their earnings before the pandemic. And only 7% said they feel confident that they can meet payroll without further help from the government.
The vast majority of all respondents (91%) said they would like the opportunity to obtain a second PPP loan.
Currently, the program, which will end on August 8, is limited to one loan per company, although lawmakers are debating what else can be done to support different parts of the economy in a possible fourth round of aid.
The survey was part of a Goldman Sachs initiative that aims to train students in its 10,000 small business training program A platform on which to advocate for themselves before policy makers.
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