Small businesses continue to take a hit from the coronavirus pandemic, with many struggling amid a resurgence in Covid-19 cases as fall gets underway, according to a forthcoming survey from Goldman Sachs.
The company surveyed more than 1,000 small-business owners in late August and found that most say more government action is needed to help small businesses recover from the economic effects of the pandemic.
Although the economic pain is being felt across the board, the survey also found that minority-owned small businesses are among the hardest hit. More than 40% of those surveyed said they have less than three months’ cash reserves on hand, a number that rises to 51% among Black-owned small businesses. What’s more, just 31% of those surveyed said they are “very confident” they would get access to funding if they need it, a figure that drops to 20% among Black-owned businesses, according to the survey.
Nearly 90% of all surveyed said they support the federal government providing additional financial emergency assistance given the rise of Covid-19 cases, and more than 90% said they support the creation of a long-term, low-interest loan guarantee program to help small businesses rebuild their balance sheets.
“Eighteen months of Covid-related economic headwinds have battered America’s small businesses. While many storefronts are reopening, small-business owners from across the country are sending a clear message that they need more relief in order to continue on their road to recovery,” according to Joe Wall, national director of Goldman Sachs 10,000 Small Businesses Voices program, which conducted the survey.
The full report will be released next week and addresses a range of issues, including the effects of government restrictions on small businesses’ ability to operate, according to spokesman for Goldman Sachs.