A report published by Main Street America reveals nearly 7.5 million small businesses across the country are in danger of closing over the next five months as a result of the COVID-19 crisis.
Of the 213 Arkansas small businesses surveyed that responded, more than 60 percent indicated their businesses are at risk of closing. More than half of Arkansas respondents have seen revenue decrease by more than 75 percent, according to a news release.
“Arkansas had one of the highest survey responses, and it is clear that our Main Street businesses are feeling the impact of this national health crisis,” said Jimmy Bryant, director of Arkansas Heritage. “Our Main Street Arkansas team is staying in close contact with these small business owners and offering advice and looking for programs and grants that may be of assistance.”
Shelley Green is with the Green Corner Store in SoMa501, a Main Street Program in Little Rock.
“As with other small businesses, our sales plummeted virtually overnight,” Green said. “We had to cut back on staff and while we continue to do limited business, our supply chain was disrupted for many of the highest demand items. Main Street has been a valuable resource. They have promoted what we are doing and shared their knowledge and support when applying for financial assistance.”
Independent reporting for Pine Bluff & Jefferson County since 1879.
The Impact of COVID-19 on Small Businesses survey is the first and most extensive collection of data assessing the impact of the pandemic on small businesses, according to the release.
Nationwide, 91 percent of the nearly 6,000 small businesses that responded to the survey have 20 or fewer employees. Interactive maps with state and local-level data can be found at https://bit.ly/2xJ80jR or at the Main Street America website at www.mainstreet.org.
“In Arkansas, an overwhelming majority of Main Street businesses fall into the small business category,” said Greg Phillips, director of Main Street Arkansas. “These are our friends and neighbors who have worked hard to build something so they can give back to their communities, and many are offering alternative services during this time, such as curbside pick up or online shopping. When possible, we encourage residents to support them because it truly makes a difference.”
Main Street America is calling on Congress to step in and offer assistance.
“We remain deeply concerned that many of our nation’s smallest businesses are the most vulnerable to revenue disruption caused by the pandemic, and these businesses are the least able to obtain funds absent a well-developed relationship with an existing lender and/or technical assistance in securing funds,” said Patrice Frey, president and CEO of Main Street America. “Congress must ensure there are sufficient funds to support all small businesses in need, particularly those with under 20 employees.”
The report calls on Congress to fund the U.S. Small Business Administration and partner with organizations like local Main Street and Chambers of Commerce to expand technical assistance to small businesses.
Details: Main Street Arkansas at info@arkansaspreservation.com or 501-324-9150. To read the full report from the survey visit https://bit.ly/2KjrDl9 or on the Main Street America website.