Possible need for additional financial support should preclude any discussion of tax increases
PHOENIX, June 23, 2020—Results from a national survey of small-business owners released today by their leading association revealed a variety of information on such things as the use of the two federal loan programs, how many would be using the extended forgiveness period, how many will need more money, and awareness of the tax deferment provision.
“These numbers show that hope springs eternal in the minds of small-business owners,” said Chad Heinrich, Arizona state director for NFIB, which conducted the survey. “The complicating factor will be how, where, and at what rate the coronavirus continues to spread in our state.
“With almost half of small business owners expecting to need financial support in the next 12 months, elected officials at all levels should remain resistant to tax increases while also seeking to remedy regulatory burdens faced by small businesses who are just trying to stay afloat.”
Key findings from the survey include:
- The number of small business owners applying for a Paycheck Protection Program (PPP) loan increased slightly over the last two weeks.
- Nearly all PPP applications (97%) have received their loans.
- Over half (59%) of PPP loan borrowers are taking advantage of the extended 24-week forgiveness period.
- Some owners report having to adjust their workforce to reflect the economic environment with 14% of PPP loan borrowers anticipating having to lay off employees after using the loan.
- Over one-third of owners (35%) have applied for an Economic Injury Disaster Loan (EIDL) and most are still waiting for their loan to be processed.
- Economic conditions have improved for many small business owners over the last month as states have eased business restrictions and stay at home orders.
- The economic and health crisis is lasting much longer than the PPP’s initial design of primarily supporting two months of payroll and limited non-payroll expenses, and of the EIDL’s reduced loan distributions.
- About 41% of respondents are familiar with the new tax deferment provision and about 6% of respondents have taken advantage of it.
- Most small business owners have had to adjust their business operations to some degree due to the COVID-19 health crisis.
“Small businesses are entering the fourth month of economic crisis and are still experiencing a heavy amount of uncertainty and complications,” said Holly Wade, NFIB Director of Research & Policy Analysis. “Now that owners have more flexibility in using their PPP loan, they can focus on adjusting business operation accordingly as states loosen business restrictions.”
Keep up with the latest on Arizona small-business at www.nfib.com/arizona or by following NFIB on Twitter @NFIB_AZ
For more than 77 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 its 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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