Indiana Small Business Owners Unsure About Future

By LaMonte Richardson
TheStatehouseFile.com

INDIANAPOLIS— The latest National Federation of Independent Business report showed that Indiana small business owners expecting better business conditions over the next six months declined by 19 points in November, to a net 8%.

The latest NFIB survey contains both good and bad news, said Barbara Quandt, NFIB Indiana state director. She said she isn’t surprised to see the category of those expecting business conditions to improve over the next six months declined.

Small businesses across Indiana and the nation have been hammered by the COVID-19 pandemic, which continues to spread. In fact, Gov. Eric Holcomb on Thursday announced some new restrictions that will limit indoor gatherings through early in new year.

The report also included the NFIB Small Business Optimism Index, showing a 2.6-point decline in November to 101.4 but remaining well above the 47-year historical average reading of 98. Six of the 10 index components declined and four increased. The NFIB Uncertainty Index decreased 8 points to 90, still a historically high reading.

“Frankly, with all the doom and gloom out there, I thought the reading would be considerably lower,” Quandt said.

She said businesses need Indiana Congressional leaders in Washington to pass another round of Paycheck Protection Program funds.

The Paycheck Protection Program is a loan that was introduced by the CARES Act to provide a direct incentive for small businesses to keep their workers on the payroll. The amount of a PPP loan is approximately equal to 2.5 times the applicant’s average monthly payroll costs.

“Our last survey showed that one in five small business owners say they may not make it without a second round of PPP like assistance. And, of course, we are now heading into winter and the traditionally slower first quarter for many small businesses,” Quandt said.

“If they don’t get help from the federal government by the end of this year, it could be the death knell for many of them.”

Although many businesses are suffering, there are some that are benefitting during COVID-19. A net 5% of all owners reported higher nominal sales in the past 3 months, down 1 point from October but holding at the current recovery level.

FOOTNOTE: LaMonte Richardson Jr. is a reporter for TheStatehouseFile.com, a news website powered by Franklin College journalism students.