| 
iStock photo illustration
More than half of small business owners surveyed in Greater Boston plan to apply for or have already sought funding to address the impact of the pandemic on their business, according to a recent report from Bank of America.
The top reason for seeking additional funding was for payroll and staffing, Bank of America said in its Small Business Owner Report. The annual report includes both a national survey of more than 1,000 small business owners and an additional 300 business owners sampled in each of several regions, including Greater Boston.
Similar to the national average, 83 percent of small businesses in Boston have remained open in some capacity during the pandemic and shutdowns, with 63 percent adjusting operations and 19 percent operating as an essential business.
The coronavirus affected the day-to-day operations of 82 percent of Boston small business owners compared to 78 percent Bank of America’s national survey.
The top three effects were shifting to a more digital strategy to sell products or services (43 percent), changing the primary revenue stream (40 percent) and implementing enhanced sanitation practices (38 percent).
The pandemic also affected reserves and credit lines for Greater Boston small business owners, with 17 percent saying they had tapped into reserves or maxed out on lines of credit to keep operations functional.
Of the 54 percent of survey respondents in Boston who sought funding or plan to apply for funding to address the impact of the pandemic on their business, 36 percent took part in the Paycheck Protection Program, 21 percent applied for an Economic Injury Disaster Loan (EIDL) and 7 percent applied for a traditional bank loan.
The top uses for the funding were payroll and staffing needs (61 percent), operating expenses (54 percent), marketing (51 percent), investing in digital presence (40 percent), implementing new safety measures and protocols (32 percent), sourcing or maintaining inventory (31 percent), investing in new technology (27 percent), expanding operations (24 percent) and retooling products/services (21 percent).
Greater Boston’s small business owners also made other changes in response to the pandemic, with 38 percent taking steps to reinvent themselves or help their local communities. Of these owners, 58 percent developed new products or services to address the impact of the pandemic and 46 donated their time, products or services.
“During what have been unprecedented challenges for small businesses this year, I’ve been inspired by business owners throughout the country who have demonstrated a commitment to innovation while serving the needs of their local communities,” Sharon Miller, head of small business at Bank of America, said in a statement announcing the national results. “Every day, I hear from entrepreneurs who are retooling and adapting to create new opportunities for themselves and their employees.”
To get through the coronavirus crisis, Boston’s small business owners would consider it beneficial to have restored confidence in public health (77 percent), debt forgiveness (75 percent), increased consumer spending (74 percent), government relief programs for small businesses (72 percent), supply chain strength and resilience (67 percent) and community support such as shop-small initiatives (64 percent).
Boston’s small business owners remained cautious about their business projections. With revenue projections for the year ahead at an all-time low, 41 percent expect their revenue to increase, one-third anticipate it would stay the same and 29 percent said it would decrease.
Hiring plans have also reached an all-time low, Bank of America said, with 19 percent planning to hire and two-thirds planning to keep staffing levels the same.
