NEW YORK – The JPMorgan Chase Institute released new research examining the initial impact of the COVID-19 pandemic on U.S. small business finances. Findings include:
- Â Small business cash balances dropped 12.7% and revenues dropped as much as 50% at the onset of COVID-19, but balances rebounded by the end of April.
- Â Black- and Asian-owned businesses experienced more severe drops in cash balances and revenues relative to white-owned businesses.
- Â Across 16 U.S. metro areas highlighted in the research, small businesses in Atlanta and Las Vegas experienced the steepest declines in cash balances.
The institute said researchers leveraged daily transactions from a sample of nearly 1.3 million de-identified small businesses that hold Chase Business Banking deposit accounts, including both employer and nonemployer firms, to analyze cash balances, revenues and expenses through April 2020.
The JPMorgan Chase Institute will continue to release additional insights over the coming months as part of this COVID-19 series, examining topics such as household income and liquid assets, to help inform efforts aimed at supporting economic recovery.
