The United States has more than 30 million small businesses that employ almost 60 million people. During the global coronavirus pandemic, many either had to shut down or operate at minimum capacity.
Now, as many states begin to reopen, these businesses are trying to get back to some kind of “normal.” Yet, with consumer spending at a 10-year low, a vast number of these businesses are still struggling to make ends meet.
Over the past few months, some businesses have found help in the form of grants, loans, tax deferrals, and eviction and foreclosure moratoriums.
But which states and local fundraisers have and continue to offer the most assistance, and which are leaving small businesses to fend for themselves?
The organization Best Accounting Software reviews and rates financial software to help small businesses, freelancers, nonprofits and other organizations make more informed purchases. They recently ranked each state based on the help they’ve given and are continuing to give to small businesses during the pandemic. Scores depend on the number of loans that have been or are still available, the allocation of federal funding, and their regulations (e.g. extending businesses tax deadlines).
What did they find?
- Idaho, Nevada, West Virginia, and Wyoming have no known loans or grants available for small businesses
- Only 26 states have (or have had) a statewide loan available for small businesses, with just 17 introducing grant-based schemes
- While all states have received some federal funding in the form of PPP and EIDL loans, some received far more support than others. For example, 25.71 percent of small businesses received a PPP loan in North Dakota, while just 12.19 percent received the same in Maryland
- The highest percentage of small businesses to have received an EIDL loan advance within one state was 1.18 percent in Hawaii. The lowest was 0.56 percent in West Virginia
Explore the details in the full report.
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