The Case for RESTART: Small and Medium-Sized Business Data Small Business Data From the Census Small Business Pulse Survey, 1 updated for the week of 6/14 to 6/20: • 83% of small businesses reported that the COVID-19 pandemic has had a large or moderate negative effect on business. • 45% of small businesses reported a decrease in operating revenues/sales/receipts during the second week of June. • 11% of small businesses reported a decrease in the number of paid employees during the first week of June. • Some businesses that have not reduced employees have still reduced employee hours: around 25% of small businesses reported a reduction in total number of hours worked by paid employees during the same timeframe. • 75% of small businesses do not have enough cash on hand to cover more than two months of business operations, including financial assistance and loans. • 75% of small businesses have requested financial assistance from the Paycheck Protection Program (PPP) since March 13, 2020. • 40% of small businesses believe it will take more than six months for business to return to its normal level of operations relative to 2019. Real time economic data indicates a potential stall in small business recovery:2 1 2 https://portal.census.gov/pulse/data/#data https://tracktherecovery.org/; https://joinhomebase.com/data/national/ 1 • As of June 16, total small business revenue decreased by 16.7% relative to January 2020. o Revenue for businesses in high-income ZIP codes decreased by 23.7% compared to January 2020, while revenue for businesses in low-income ZIP codes decreased by 10.2 %. • The number of hours worked at small businesses has decreased by 28% since January 2020. • The number of small business locations open is down 22% since January 2020. • The number of employees working at small businesses is down 27% since January 2020. Hardest-Hit Industry Data Travel and Hospitality3 • 8 in 10 hotel rooms are empty across the United States. • The hotel industry is projected to suffer revenue losses of 57.5% in 2020. • In April 2020, U.S. hotel operating profits fell by 117% compared to 2019. • In mid-June 2020, total rooms sold were half the amount of the total rooms sold last year.4 • With 70% of hotel employees laid off or furloughed, hotel workers are losing over $2.4 billion per week. • As of June 16, leisure and hospitality small business revenue has decreased by 40.6% since January 2020.5 Restaurants6 https://www.ahla.com/covid-19s-impact-hotel-industry https://str.com/data-insights-blog/video-us-performance-results-week-ending-june-13 5 https://tracktherecovery.org/ 6 https://restaurant.org/research/economy/indicators/restaurant-sales 3 4 2 • Between the March and May 2020, restaurant sales fell nearly $27 billion from pre-coronavirus sales in January and February 2020. • April 2020 saw $29.3 billion in sales, the lowest sales level since February 1983. • Between March and May 2020, total sales were down more than $94 billion from expected levels. • As of mid-June, 1 in 5 food and drink locations are closed relative to the beginning of March, and 30% fewer employees are working than were working prior to the pandemic.7 Music Venues and Theaters 8 7 8 • 90% of independent concert venues expect to permanently close down in a few months if shutdowns persist and no federal funding becomes available. • Independent venues are forecast to lose almost $9 billion in revenue if the rest of 2020 remains dark. https://joinhomebase.com/data/national/ https://www.nivassoc.org/ 3 9 • 92% of small businesses in the Arts, Entertainment and Recreation industry reported that the pandemic had a negative effect on their business. • As of mid-June, 1 in 3 leisure and entertainment business locations are closed relative to pre-pandemic levels, and 1 in 3 employees in the industry are no longer working.9 https://joinhomebase.com/data/national/ 4