If eligible, 44% of small businesses said they would apply or re-apply for a second PPP loan with another 31% saying they would consider applying for one.
The 11th in a series of surveys the NFIB Research Center has conducted to assess the COVID-19 health crisis’ impact on small businesses was published on August 24. After the initial Paycheck Protection Program (PPP) loan application period expired on August 8, Congress has yet to pass additional financial support for small businesses. “The health crisis is not impacting small businesses equally,” said Holly Wade, NFIB Director of Research and Policy Analysis. “Small businesses are adapting to the abrupt shifts in consumer spending, managing customer and employees’ health and safety, and complying with state and local mandates which are all creating additional stress for small business owners. Many of them still need more financial assistance just to keep their doors open and staff on payroll.” Key findings from the survey include: Most PPP borrowers (84%) have now used their entire loan, up from 71% in July. Thirty-five percent of respondents have applied for an Economic Injury Disaster Loan (EIDL). Almost half of PPP loan borrowers (47%) anticipate needing additional financial support over the next 12 months. Sales levels remain at 50% or less than they were pre-COVID sales levels for about one-in-five employers. About one-in-five (21%) of small business owners report they will have to close their doors if current economic conditions do not improve over the next six months. Most small business owners do not expect business conditions to improve to normal levels until next year at the earliest. The CARES Act provided additional financial assistance of supplemental unemployment insurance benefits through July 31. The program presented a significant challenge to some small business owners. The threat of legal action against small business is a serious concern for 21% of owners and a moderate concern for another 34% of owners. About one-in-five (21%) of small employers have had an employee take COVID-19 related paid sick leave or family leave as mandated and offered through the Families First Coronavirus Response Act (FFCRA). This publication marks NFIB’s 11th Small Business COVID-19 survey assessing the health crisis impact on small business operations, economic conditions, and utilization of the targeted small business loan programs. The first series was published in early March 2020 with subsequent publications every 2-3 weeks, found here. The full survey is available here.