Using data from the Small Business Pulse Survey conducted by the Census Bureau, the Board’s staff found that, in states with tighter restrictions on business activity, small firms were more likely to report large declines in their business operations.
Firms in relatively restrictive states were also more likely to report that they expect to operate at reduced capacity for an extended period, and they were more likely to expect to need financial assistance in the next six months. While obviously not conclusive, the visible relationship between state-level economic restrictions and small business damage is both striking and concerning.