Toll Of Pandemic On Brooklyn Small Businesses Revealed In Survey

BROOKLYN, NY — Survey results revealed this week by the Brooklyn Chamber of Commerce reveal the devastating toll the coronavirus pandemic took on the borough's small businesses.

“The end of the year survey results confirm all that we had been tracking all along in 2020,” said Chamber of Commerce President Randy Peers said. “Small business revenue is in a free fall, 85 percent of businesses let some of their employees go, and a third of businesses still owe back rent.”

The survey — taken by businesses across various sectors and neighborhoods — found that 80 percent of small businesses had a decline in revenue between 2019 and 2020, with nearly half saying the decline was more than half their annual revenue.

Minority and women-owned businesses were particularly impacted, according to the study. More than half of those 166 participating businesses reported significant revenue losses and more than half mentioned increase debt due to business interruptions, according to the results.

The survey also revealed the effectiveness, or lack thereof, of various relief options.

Half of the small businesses said they did not receive any rent concessions.

More than half, though, received an Economic Injury Disaster Loan (EIDL) and 75 percent got a loan through the Paycheck Protection Program (PPP).

Still, more is needed, Peers said. 83 percent of businesses said they are still in need of more grants to survive.

“We need to urgently re-open more of our economy and access much more federal support if our small businesses are to survive in 2021,” he said.

Here's a look at the full results from the Chamber of Commerce survey:

Revenue

• 80% of all businesses, and 77% of M/WBE businesses indicated an overall decline in revenue from 2019 to 2020.
• 47% of all businesses who lost revenue indicated the decline was more than half their annual revenue.
• Only 13% of businesses indicated a year over year increase in revenue; these businesses tended to be concentrated in the healthcare, construction, and consulting sectors.

Employee Head Counts

• 85% of all businesses reduced their year over year employee headcounts from 2019 to 2020.

Rent

• 33% of all businesses owe some back rent.
• 49% of all businesses did not receive any rent concessions
• Of those businesses that did receive a concession, outright rent reductions or rent deferrals were the most common, 20% and 20% respectively

Top Three Impacts of Covid on Businesses
1) Reduced Revenue = 80%
2) Loss of Customers = 74%
3) Increased Debt = 51%

Top Three Ways Business Model Changed
1) Reduced Hours = 59%
2) Implemented Technology Upgrades (Point of Sale and/or Website) = 33%
3) Changed or Diversified Product Mix = 26%

• Only 11% of businesses indicated they built or utilized and outdoor facility

Financial Assistance Received

• 75% of small businesses received a Paycheck Protection Loan (PPP); There was no statistical difference in the % of M/WBE businesses that received PPP loans vs. all other businesses
• 53% received an Economic Injury Disaster Loan (EIDL)
• 17% indicated they received some type of "other" financial support including unemployment insurance, friends/family funds or a personal loan

Ongoing Business Support Needs

• Grants = 83%
• Rent Relief = 63%
• Marketing Support = 63%