Following a seemingly disastrous first round of the Paycheck Protection Program for many small business enterprises, the second round seems to have finally hit home for those who were left on the sidelines in the early going. At least that’s the latest summation from the National Federation for Independent Business, whose Research Center is out with data on the matter.
The NFIB Research Center has released a survey on the small business loan programs. Small business owners were asked about the Paycheck Protection Program (PPP) and the Economic Injury Disaster Loan (EIDL) programs. The PPP is very popular among small businesses, with 77-percent of owners among NFIB members reporting they have successfully submitted an application. About 61-percent of PPP loan applicants have actually received their loan money.
Holly Wade, NFIB Director of Research & Policy Analysis, says, “After the second round of funding, many more small businesses received funding from these federal loan programs,” and adds, “Now, business owners need guidance on how they can spend the PPP funds in order for them to be forgiven.”
Key findings of the survey include:
The majority of small businesses have applied for a PPP loan.
- About 84-percent of applications were submitted before April 17th, when the program was suspended for funding, and 16-percent of applications were submitted after April 17th.
- Half of applicants submitted their application through a small or local bank, 18-percent submitted through a medium-size bank, 14-percent submitted through a large bank, and 4-percent through a financial technology (FinTech) lender.
Over half of owners have received their PPP loan.
- Forty percent of applicants are still waiting, but just under half of those waiting (45-percent) have received notice that their loan is approved.
- Just over half (55-percent) of applicants who have not received a loan are still waiting to hear from their financial institution about their loan status.
Under half of respondents applied for an EIDL.
- About 40-percent of respondents submitted a loan application for an EIDL and 60-percent of them applied before April 1st.
- The vast majority (75-percent) of EIDL applicants also requested the EIDL Emergency Grant.
Owners are most concerned with getting customers back to their business.
- Virtually all small business owners are, to some degree, concerned about increases in liability claims with 38-percent very concerned about increased liability when re-opening their business.
The full NFIB Research Center survey is available at the link below: