A survey recently conducted by the Federal Reserve showed Wednesday that 95% of small businesses in the US with fewer than 500 employees reported that the coronavirus pandemic affected their business, as reported Reuters.
Additional conclusions
“78% of companies reported a decrease in revenue and 46% reduced their workforce.”
“Nearly 90% of small business owners said that sales had not returned to pre-pandemic levels in September or October.”
“Of the companies that reported a drop in sales, nearly a third said they would be unlikely to survive without government help.”
“64% of companies said they would request another round of government aid if it were offered.”
“54% of businesses overall characterized their financial situation as ‘fair’ or ‘poor,’ but the results varied markedly based on the race and ethnicity of the owners.”
“79% of Asian-owned businesses, 77% of black-owned businesses, and 66% of Hispanic-owned businesses characterized their financial situation as fair or poor.”
“The availability of credit was the main challenge expected for black-owned companies during the next 12 months.”
“Companies that received funds from the paycheck protection program were more likely to retain labor than applicants that did not receive funds.”
Market reaction
This report does not appear to affect market sentiment. At the time of writing, S&P 500 futures they were up 0.27% on the day to 3,836.
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