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35.9% of CA small businesses closed during pandemic
May 11, 2021
The coronavirus pandemic has hit small businesses hard. According to recent data from Harvard University, the percentage of California businesses that closed during the pandemic stands at 35.9%. That ranks as the 11th highest small business closure rate among 45 states.
The state that had the largest percentage of small business closures was Michigan with a 39.7% rate. Other states in the top 10 of small business closures include:
(tie) Alaska 38.9%
(tie) Maine 38.9%
New Jersey 36.9%
(tie) Rhode Island 36.5%
(tie) Illinois 36.5%
New Mexico 36.2%
In February, Yelp reported that
15,000 businesses closed in Los Angeles County
alone. About half that number aren’t expected to reopen. Many of the closed businesses were small operations. Smaller businesses often have less money available to keep operations afloat and may not have as strong of relationships with local banks.
Now that California plans to fully reopen June 15, it will be interesting to see how many small businesses return as the economy bounds back.