Small business owners are dipping into their personal savings to stay afloat

Aug 6, 2020, 11:19 AM
jobs virus small business savings...
FILE - In this July 13, 2020, file photo a For Rent sign hangs on a closed shop during the coronavirus pandemic in Miami Beach, Fla. Some small business owners say they have had to dip into their personal savings to stay in business. (AP Photo/Lynne Sladky, File)
(AP Photo/Lynne Sladky, File)

SALT LAKE CITY —  A recent survey from found 35% of small business owners are using personal money to stay afloat during the coronavirus pandemic.

Around 70% of businesses are also using government aid like the Paycheck Protection Program (PPP).  But many say it’s not enough and they’re in danger of hurting their financial futures.

Michelle Francis, Senior Tax Manager with Eide Bailly in Salt Lake City, says almost all of her clients received money from the PPP, but those funds are now exhausted. 

“They’re looking at a second round of layoffs after they laid off employees when the pandemic first shut down their businesses,” Francis said. “Many business owners are now mortgaging their residences in order to stay open and pay employees.” 

And with the $600 federal government unemployment bonus expired, many workers face an uncertain financial future.

Julie Smith, owner of Get Away Today, said they had sixty employees before COVID-19.  They kept many of them with the help of a PPP loan, but now the funds are gone. 

“We’re down to twenty staff members, and paying them out of our personal funds,” Smith said. 

Jennifer Dunyan, the Executive Vice President of Get Away Today, described what happened to her business as a “triple-whammy.”

“We primarily book vacations to Disneyland in Southern California, which is still closed. And we also book cruises,” Dunyan said. 

“The first month the pandemic hit was extremely busy,” said Smith. “Many employees were working overtime to get people back home or cancel future trips.”

But now the travel side of their business is at a crawl. As a result, Smith and Dunyon said they’ve branched out into other industries.

“Our CEO said ‘this isn’t the time to start a new business,'” Dunyon continued, “but it’s the perfect time, because what else can we do to stay open?”

Get Away Today is branching out into face masks with Disney themes and also a health care drink.  Dunyon said they are seeing revenue from the projects, but Smith and her husband had to dip into personal savings to launch them.

Francis stated many of her clients are in the same boat.  They are looking at other areas to make money, dipping into their personal funds, or looking at closing up shop for good.


We want to hear from you.

Have a story idea or tip? Send it to the KSL NewsRadio team here.

Today’s Top Stories

All News

The exterior of the Church of Jesus Christ of Latter Day Saints Conference Center.  Boyd Matheson o...
Mark Jones

Church leaders travel the world ministering to all people

Inside Sources with Boyd Matheson discusses the travels of church leaders as they are out ministering to all people around the world.
1 day ago
North Park Police is investigating a bomb threat Friday afternoon at a Walmart in North Logan. Shut...
Mark Jones

No bomb found after threat is made at North Logan Walmart

North Park Police are investigating a bomb threat at a North Logan Walmart on Friday afternoon.
1 day ago
FILE - In this March 31, 2018, file photo, The Mormon Tabernacle Choir perform during the twice-ann...
Mark Jones

Tabernacle Choir at Temple Square will be joined by international singers this weekend

The Tabernacle Choir at Temple Square will be joined by international singers during the 193rd Annual General Conference of The Church of Jesus Christ of Latter-day Saints.
1 day ago
A new substance linked to several deadly overdoses around the country is now appearing in Utah, and...
Hugo Rikard-Bell

Drug Enforcement Administration warns of new substance appearing in Utah

A new substance linked to several deadly overdoses around the country is now appearing in Utah, and the DEA says it’s a serious danger.
1 day ago
paltrow pictured at her ski accident trial...
Waverly Golden and Jessica Lowell

Lawyers of man who lost lawsuit against Gwyneth Paltrow may try for new trial

Sanderson was asking for $300,000 in damages while Paltrow countersued for $1.
1 day ago
former president donald trump is pictured...

AP sources: Trump facing at least 1 felony charge in NY case

He will be formally arrested and arraigned next Tuesday in his hush money case, court officials said.
1 day ago

Sponsored Articles

Cheerful young woman writing an assignment while sitting at desk between two classmates during clas...
BYU EMBA at the Marriott School of Business

Hear it Firsthand: 6 Students Share Their Executive MBA Experience at BYU’s Marriott School of Business

The Executive MBA program at BYU offers great opportunities. Hear experiences straight from students enrolled in the program.
Skier being towed by a rider on a horse. Skijoring....
Bear Lake Convention and Visitors Bureau

Looking for a new winter activity? Try skijoring in Bear Lake

Skijoring is when someone on skis is pulled by a horse, dog, animal, or motor vehicle. The driver leads the skiers through an obstacle course over jumps, hoops, and gates.
Banner with Cervical Cancer Awareness Realistic Ribbon...
Intermountain Health

Five common causes of Cervical Cancer – and what you can do to lower your risk

January is National Cervical Cancer Awareness month and cancer experts at Intermountain Health are working to educate women about cervical cancer.
Kid holding a cisco fish at winterfest...
Bear Lake Convention and Visitors Bureau

Get ready for fun at the 2023 Bear Lake Monster Winterfest

The Bear Lake Monster Winterfest is an annual weekend event jam-packed full of fun activities the whole family can enjoy.
happy friends with sparklers at christmas dinner...

15 easy Christmas dinner ideas

We’ve scoured the web for you and narrowed down a few of our favorite Christmas dinner ideas to make your planning easy.
Spicy Homemade Loaded Taters Tots...

5 Game Day Snacks for the Whole Family (with recipes!)

Try these game day snacks to make watching football at home with your family feel like a special occasion. 
Small business owners are dipping into their personal savings to stay afloat