Two recent surveys paint a grim picture for both associations and small businesses as they struggle to survive the economic disruption caused by the COVID-19 pandemic.

A survey of associations conducted by ASAE found that 10% of respondents are facing losses of $1 million or more because of meetings cancelations, with another 45% facing losses from $100,001 to $1 million. ASAE received 240 responses to the revenue-loss question in its March 23-26 survey.

At the same time, a separate poll of 500 small business owners by the U.S. Chamber of Commerce found nearly a quarter of respondents were within two months of closing their doors permanently.

501(c)(6) nonprofit organizations—which include trade groups and many professional associations—were largely left out of the economic stimulus bill passed by Congress. In an April 2 letter to congressional leaders, ASAE and nearly 3,000 associations urge lawmakers to include their groups in any future aid, grant them eligibility for Small Business Administration loans, and create a pandemic risk insurance program to establish "a federal backstop for prospective insurance claims related to a pandemic or epidemic."

Specifically, ASAE is seeking $25 billion in aid for associations harmed by event cancelations. As far as the insurance program, the group noted that 52 percent of respondents surveyed had no insurance coverage for their canceled events.

Associations face "unprecedented financial losses from event cancellations," the groups said in the letter. "Most associations also anticipate further losses in dues revenues, as members address their own economically precarious circumstances by cutting expenses, including association membership. Without support, Section 501(c)(6) organizations will be unable to continue to provide the services on which so many rely."

Small business impacts

The Chamber poll—coordinated with insurer MetLife—found that 24% of respondents said they were within two months or less of closing permanently. Roughly 11% said they were less than a month away of closing their doors for good.

Roughly a quarter of the 500 respondents had temporarily shut down as a result of the pandemic. Among those still open, 40% said they are likely to close temporarily within two weeks. All in all, a total of 54% of all small businesses report that they have closed or expect to close temporarily in the next 14 days.

"As the poll results show, small business owners are looking for loans and financial aid to ensure they do not have to shut their doors or go bankrupt because of the coronavirus," said Neil Bradley, chief policy officer at the Chamber. "American banks are ready to help, but they need clear guidelines from the administration."

Banks have complained in recent days they have not been given clear guidance from the Trump administration on how to divvy out $350 billion in small business loans approved by Congress, and the Chamber isn't the only business groups raising red flags. In a separate statement, American Gaming Association CEO Bill Miller said interim guidelines issued by the Small Business Administration preclude small gaming entities and their employees from receiving support under the program.

"Unless amended, these initial guidelines will irreparably harm one-third of the U.S. casino industry and the hundreds of thousands of Americans that rely on gaming businesses for their livelihood," Miller said.

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