Survey shows seven in 10 small-business owners have used some form
of support for their business since March. The most common option was
PPP loans, with 30% saying they received one, followed by 24% saying
they turned to personal credit cards and business savings accounts. In
total, 35% of owners used either personal credit cards or savings
accounts, with 10% using both, to support their business. This personal
funding has further blurred the line between personal and business
finances. Small businesses that bring in less than $1 million annually
typically need the owner to personally back the debt, meaning they’re
responsible if the company can’t pay. This leaves entrepreneurs on the
hook for the risk, even if it’s in the name of their business. While this has
always been the case, the pandemic has intensified the personal financial
risk to small entrepreneurs