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74% of small business owners took on debt to offset COVID-19 losses: RPT

Yahoo Finance’s Brian Cheung joins Zack Guzman to break down a new survey from LendingTree that found almost three-quarters of small business owners had to take on debt to cope with financial losses due to the coronavirus pandemic.

Video Transcript

ZACK GUZMAN: seen a lot of small businesses struggling in the coronavirus pandemic. And a new report is putting a number on exactly how many have had to take on more debt here to try and survive the crisis. And here with more on that, I want to bring on Yahoo Finance's Brian Cheung, who has the details. Brian.

BRIAN CHEUNG: Well, exactly. It's 74% of small business owners that have taken on debt to cope with this financial crisis-- this COVID-19 issue. This coming from a Lending Tree report this week. 37% of businesses took on, specifically, credit card debt. 28% borrowing from friends or family. Only 10% of those small business owners said that the Paycheck Protection Program funding from that first round of CARES Act really helped them with the financial difficulties.

And actually, as of right now, only about 13% of the small businesses, again, pulled by Lending Tree said they've been able to completely resume operations, which really underscores the need for more support to these small businesses in the future. Obviously, all this coming as those talks of another stimulus bill happen down in Capitol Hill. It remains to be seen what's going to be in that. But it does seem like, based on the Lending Tree data, small businesses should be a big focal point of that next package.