Other concerns include getting customers back, increased liability
AUSTIN (May 5, 2020) – The NFIB Research Center released a survey today 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% of owners reporting they have successfully submitted an application. The full survey is available here.
“After the second round of funding, many more small businesses were able to apply and receive funding from these federal loan programs,” said Holly Wade, NFIB Director of Research & Policy Analysis. “Now, business owners need guidance on how they can spend these funds in order for them to be forgiven.”
State-specific data is unavailable. NFIB State Director Annie Spilman said, “Our Texas members appreciate the opportunity they’ve been given to begin reopening their businesses, but I think the survey shows that small business owners everywhere see reopening as a process with its own challenges.” According to the survey, owners are concerned about getting customers back, increased liability, and stocking up on supplies such as hand sanitizer and disinfectant.
Key Findings of the survey include:
The majority of small businesses have applied for a PPP loan.
• About 84% of applications were submitted before April 17, when the program was suspended for funding, and 16% of applications were submitted after April 17.
• Half of applicants submitted their application through a small or local bank, 18% submitted through a medium-size bank, 14% submitted through a large bank, and 4% 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%) have received notice that their loan is approved.
• Just over half (55%) 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% of respondents submitted a loan application for an EIDL and 60% of them applied before April 1.
• The vast majority (75%) 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% very concerned about increased liability when re-opening their business.
For more than 75 years, NFIB has been the voice of small business, advocating on behalf of America’s small and independent business owners, both in Washington, D.C., and in all 50 state capitals. NFIB is nonprofit, nonpartisan, and member-driven. Since our founding in 1943, NFIB has been exclusively dedicated to small and independent businesses and remains so today. For more information, please visit www.NFIB.com.