Finance and Insurance Industries Recovered Best from the Pandemic
The latest Biz2Credit Recovery Ranking for 2021 reveals that the Financial Services and Insurance industries are enjoying the fastest recovery from the COVID-19 pandemic.
Biz2Credit is an online credit resource offering finance to small businesses. Its study analyzed the financial performance of more than 200,000 companies across the country that applied for resources through its online funding platform. The analyzed companies have less than $10 million in annual revenues and employ less than 250 workers.
The study ranked the industries based on the overall demand for growth capital and the number of business loans approved as part of the Paycheck Protection Program or PPP Round 1 and PPP Round 2 (Draw 1 only). The Biz2Credit survey examines the resilience of these businesses based on their ability to bounce back from the economic downturn caused by the pandemic.
Below are the top 10 industries in the Biz2Credit Recovery Ranking:
- Finance and Insurance: 67%
- Retail Trade: 56%
- Real Estate and Rental Leasing: 53%
- Wholesale Trade: 49%
- Manufacturing: 48%
- Construction: 48%
- Professional, Scientific, and Technical Services: 46%
- Health Care and Social Assistance: 46%
- Information Technology: 45%
- Administrative, Support, Waste Management, Other Services: 44%
Compared to last year, financial services and insurance businesses were in a stronger financial position in 2021. Other industries that managed to rebound financially include the retail and real estate sectors.
But even though they showed signs of recovery, the retail and real estate industries are now facing significant challenges with supply-chain shortages and are struggling to meet the increased customer demand.
Meanwhile, the financial sector and insurance companies had a higher demand for expansion capital with a low level of distress caused by restrictions and lockdowns.
At the same time, lower-ranked industries such as construction, transportation and warehousing, educational services, arts, entertainment and recreation, and public administration have been experiencing a crawling recovery and are reaching out for government relief funding.
I have always thought of myself as a writer, but I began my career as a data operator with a large fintech firm. This position proved invaluable for learning how banks and other financial institutions operate. Daily correspondence with banking experts gave me insight into the systems and policies that power the economy. When I got the chance to translate my experience into words, I gladly joined the smart, enthusiastic Fortunly team.
