- Thirty-five percent of small business owners in recent CreditCards.com survey say they used savings or personal credit cards to help cover expenses during COVID-19 pandemic
- Seventy percent use some form of assistance, such as PPP or business savings account
- Most small businesses are hoping for increase in sales to stay in business or meet growth targets
About one-third of small business owners have had to dip into personal funds to help keep their company afloat during the COVID-19 pandemic, according to a July survey of 499 small businesses by the credit card comparison site CreditCards.com.
Thirty-five percent said they had used personal funds to cover business expenses. Twenty-four percent said they or the business owner used a personal credit card, while 21 percent took money from a personal savings account. Overall, 70 percent said they used some form of assistance, such as taking out a Paycheck Protection Program Loan or relying on a business credit card or savings account.
Thirty-two percent said they would need to see an increase in sales in order for their business to remain open through the end of the year, with 44 percent saying more sales would be necessary to meet growth targets. Nineteen percent said they would need further government assistance to remain solvent, with 15 percent saying they would need this assistance to meet growth targets.
While small business owners frequently put their business expenses on personal credit cards, it is more advisable to get a business credit card. Doing so offers benefits such as liability protections, easier bookkeeping, and building business credit.