Revenue and contract obligations hit hardest in COVID-19 response, NDIA small-business survey finds


ARLINGTON, VA -- Revenue expectations, meeting contract obligations and access to capital are where small businesses are taking the biggest hits in the COVID-19 virus crisis, according to the results of a survey by the National Defense Industrial Association, the Arlington, VA-trade association announced April 23.

About 770 small businesses in the defense sector answered the survey, which NDIA did at the request of the Defense Department’s Office of Acquisition and Sustainment. DoD sought information on the coronavirus impact on operations and on future business. The survey closed April 10.

Other areas of difficulty are workforce availability, access to secure facilities, contracting officers accessibility, clear information from the Defense Department, confidence in the supply chain, and stock and cost of materials.

According to the survey, cash flow is a major issue:

  • 60% of respondents said the crisis has interfered with their cash flow; 67% of companies with less than $999,999 in annual revenue have seen a cash-flow disruption.
  • Factoring into cash-flow problems: cuts to billable hours, delayed payments from prime contractors and government customers, a lack of telework options or schedule flexibility in contracts, and shelter-in-place orders that prevent employees from working.
  • 60% of respondents expect to have long-term financial and cash-flow issues stemming from the crisis.

The technology and services sectors report more disturbances from the crisis than the manufacturing sector. And businesses with fewer than 50 employees are feeling the brunt harder than businesses with more than 500 employees.

Click here for the survey results and here for NDIA’s full analysis.

NDIA continues to work closely with DoD on COVID-19-related matters to support the defense industrial base and keep employees and businesses safe and sound. For more information, visit .

For media queries, contact Evamarie Socha at or (703) 472-3806.

About NDIA

The National Defense Industrial Association (NDIA) is America's leading defense industry association promoting national security. NDIA provides a legal and ethical forum for the exchange of information between industry and government on national security issues. NDIA and its members foster the development of the most innovative and superior equipment, training, and support for warfighters and first responders through its divisions, local chapters, affiliated associations, and events. For more information, visit