Count entrepreneurs among the most optimistic souls in the universe.
While the coronavirus death toll continued to rise, nearly 70 percent of small- to medium-sized businesses (SMBs) said the pandemic and the loss of revenue were temporary aberrations before they got back to business once COVID-19 ends, according to a PYMNTS survey on April 6.
But a closer look at the data found that without government aid from the Small Business Association’s Paycheck Protection Program (PPP), SMBs from all sectors said they would only have enough cash to survive for just nine days. When PPP forgivable loans were factored in, the companies said they would have enough funds to go another 69 days.
For some sectors, the news is even more troubling.
Dine-in restaurant owners said without government assistance, they would be without cash four days ago. If they managed to get a PPP loan, the lifeline was extended by 56 days.
It’s not much better in the construction trades, which would have enough money to survive for two days without help, 62 days with it.
Professional services owners are closely behind with just three days of cash without aid, 63 with PPP funding.
Manufacturers said an infusion of cash would give them a 64-day extension, and just four days being without.
Technology firms would have just a week to go without PPP monies, 67 days if they could get loans.
Real estate broker-owners said they would have enough money to survive for a dozen days without assistance and 100 days with it.
Retail owners, which appear to be the hardest hit, said they would last 20 days without help and 80 with it.
One thing is clear, when all sectors are averaged, nearly 83 percent of SMBs said they wouldn’t survive without PPP, and 47 percent said they would brave it out with the assistance.
For more information, visit the PYMNTS 13-page study, Main Street On Lockdown: Reinventing The Road To Recovery.