An NFIB survey indicates that one in five small businesses warn of layoffs in the next six months. Louisiana specific data is unavailable, but State Director Dawn Starns says she is getting similar feedback from small businesses and that they are struggling due to the COVID pandemic.
“Not having people available to work, and then on top of it having the lost revenue, and then on top of that not having any more financial support as in the form of PPP,” said Starns
And of those who received Paycheck Protection Program loans, the NFIB says 86-percent of those businesses have spent the entire loan and are applying for forgiveness.
Starns says consumer confidence is also down and when people don’t spend money small businesses begin to shutter.
“They are reporting like 50% less sales than where they were last year at this time. You know that’s a great indicator of just how tough the economy is right now,” said Starns.
According to Starns, bars and restaurants have been the hardest hit during the pandemic along with entertainment venues.
“The bar owners that are really just hanging on by a thread, won’t make it, and it’s a real shame. A real shame that we haven’t done more to get them where they need to be,” said Starns.
Starns says the Main Street Recovery Program has been a tremendous impact keeping thousands of small businesses afloat for a bit, but lawmakers need to do more to support small businesses.
Written and reported by Brooke Thorington
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