Congress needs to send a reassuring message now that more money is on the way
PHOENIX, April 20, 2020—From Chad Heinrich, Arizona state director for NFIB, on the release of his association’s poll showing 80% of small-business owners still waiting for their PPP loan and not knowing where they are in the process.
“It’s clear that we have many members who are still in need of a Paycheck Protection Loan. Thankfully, after unneeded political jockeying, Congress will hopefully recapitalize the program this week. This will be too late for many small businesses but will hopefully help others sustain themselves through this government-imposed shutdown. I encourage every eligible small business to apply for this much-needed relief.”
From Brad Close, president and CEO of NFIB
“The Paycheck Protection Program was established to help small businesses, yet big businesses with thousands of employees took advantage of the program, with 2% of companies getting 25% of the funding so far. This is backward, and Congress must take steps to make sure the funds make it to true small businesses.”
Click here to read Close’s editorial in today’s USA Today
NFIB’s poll of its member small-business owners found:
About three-quarters of small business owners (almost all employer businesses) have submitted an application for a PPP loan as of April 17.
- About one-in-five (20%) of submitted applications have been fully processed with funds deposited in the borrower’s account.
- Nearly 80% are still waiting, many not knowing where they are in the process.
About 40% of small business owners successfully submitted an application for an EIDL through the SBA website.
- Among those who submitted an application, most (77%) requested the emergency grant of up to $10,000.
- Of those who requested the EIDL emergency grant, about 10% have received the funds.
- Essentially, all of the EIDL applicants (99%) have yet to receive the loan.
Most small business owners believe it will take beyond 2020 and into the years following to get back to normal economic activity.
- About one-third of small business owners believe their community will be back to a normal level of economic activity by the end of the year.
- Just under 40% believe more normal levels of economic activity will return in 2021.
- A quarter of owners believe it will not be until 2022 or later before the economy returns to normal.
Keep up with the latest on New Mexico small-business at www.nfib.com/new-mexico and by following NFIB on Twitter @NFIB_NM.
For more than 75 years, NFIB has been advocating on behalf of America’s small and independent business owners, both in Washington, D.C., and in all 50 state capitals. NFIB is a nonprofit, nonpartisan, and member-driven association. Since our founding in 1943, NFIB has been exclusively dedicated to small and independent businesses and remains so today. For more information, please visit nfib.com.
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