9 million small businesses — nearly one-third of all in US — fear they won’t survive 2021



Three in ten small businesses — or 9 million out of the estimated 30 million in the United States — fear they won't survive in the coming year without additional government assistance, according to a survey recently published by the Federal Reserve.

What are the details?

The Small Business Credit Survey, which was conducted last September and October and released last week, showcased the incredible burden the coronavirus pandemic has placed on America's small businesses, as 88% of the businesses surveyed reported that sales had not yet returned to pre-pandemic levels.

Nearly one-third of respondents reportedly told surveyors that without further financial help or a return to normal sales, their businesses would likely close for good.

Among minority-owned businesses, things were markedly worse. While in total, 57% of firms said their financial condition was "fair" or "poor," that figure shot up to 79% for Asian-owned firms, 77% for black-owned firms, and 66% for Hispanic-owned firms.

The percentage of small firms carrying debt also increased to 79% from 71% the year before, and those carrying a debt burden north of $100,000 increased from 31% to 44% in 2020.

Nearly all businesses surveyed said they expected to face at least one more pandemic-related challenge over the next year. However, the two challenges most firms expected were "weak demand for products/services" and "government-mandated restrictions or closures."

What else?

The bleak outlook among small business owners in the country expressed late last year was confirmed by another survey released this month, which tracks small business optimism.

The National Federation of Independent Business published its January survey on Tuesday. It found that small business confidence is at an eight-month low. Furthermore, the number of small business owners expecting better conditions through the middle of the year has hit its lowest level since 2013.

It's difficult to be optimistic about business, added Randy George, owner of the Red Hen Baking Company in Vermont, noting that his business hasn't been allowed to have indoor dining since last April.

"We do have a lot of people coming to the window and getting sandwiches to go, but, it's a window," George said.

Commenting on the survey, Bill Dunkelberg, head of the NFIB, told Marketplace that the news is not just bad for small businesses, but could end up dragging down the entire economy.

When businesses expect sales to decline, "that's going to feed back into their capital spending plans, and their inventory investment plans, and their hiring plans," he said.

(H/T: CBS News)

VIDEO: Glenn Beck surprises business owners hurt by COVID lockdowns after GoFundMe raises more than $250K



A fundraiser set up by BlazeTV host Glenn Beck to support small businesses hurt by the coronavirus pandemic raised more than $250,000 since its launch last month — and on Friday, Beck surprised them with amazing gifts.

"We launched a GoFundMe in December to fight for a few small businesses abandoned by government during Covid-19 lockdowns," Beck said in a post on Twitter. "Today we surprised 3 owners with your generous giving. Here are their stories."

The first recipient, Catherine Hill, is the owner of Miss Kitty's Lounge, a neighborhood bar in Clovis, California. After making her rent payment on time every month since her bar opened in 2013, Hill fell on harder times once the pandemic struck and her bar was shut down by executive order. On top of that, she had been diagnosed with stage 3 breast cancer — now stage 4. Without income due to the lockdowns and the costs of chemotherapy and other medical treatment, Hill was unable to make rent payments for the first time. Her landlords decided to take her to court and are threatening to take away her business and everything else, including life insurance for her kids.

However, when presented with the monetary gift, Hill decided not to save her business but rather to redirect the funds to a charity that specializes in stage 4 cancer research, METAvivor.

Small business owners fighting for survival get MASSIVE surprise from Glenn Beck audience youtu.be

The second recipient, Joe Crowley, owns Breakaway, a community building 20 miles north of Boston which plays host to local and national bands. But after the pandemic led to shutdowns in Massachusetts, Crowley's business was forced to temporarily close down. Adding to the stress of trying to survive the pandemic, last September, Crowley suffered a massive heart attack.

The third recipient, Dave Foldes, is a co-owner of Cronies Sports Grill in California. Foldes became a target of the state government last month when he refused to close down and lay off his employees during the Christmas season despite government orders to do so. Since then, Foldes has been fined $500 a day and now owes the state more than $20,000 for refusing to abide by the lockdown restrictions. In December, Foldes assured Beck that his defiance isn't a political statement, rather he just wants his employees to be able to earn a living and doesn't intend to break his commitment to them.

Then Beck spoke about one additional beneficiary of the fundraiser: A 39-year-old mother of two who tragically took her own life in October after coronavirus restrictions forced her business, Boat Barn Bagels in Cañon City, Colorado, to shut down. The woman's mother said her daughter was a casualty of COVID-19. Now, money from the fundraiser is going to help cover the family's debt.

In an address to the City Council following her daughter's death, the mother pleaded with her community to help small business and business owners struggling to stay afloat.

"She tried to do it, but she couldn't do it and she killed herself," the mother said. "She was strong, she was smart, she was developing the business mind and doing well. I just feel like dollars are more important than just about anything, and then testing so that when the community freaks out, [business owners] can test themselves and their employees."

TheBlaze has refrained from publishing the business owner's name out of respect to her family.

In addition to the selfless giving from so many listeners, Beck also donated proceeds collected last month from Glennbeckart.com to help small business owners.