One-quarter of small-business borrowers anticipate needing additional help
DENVER, May 21, 2020—As applications for Paycheck Protection Program (PPP) loans slow, the nation’s leading small-business association today released the results of a comprehensive survey of its members about how these loans are being used, the effect they’re having, and challenges owners face in maximizing loan forgiveness.
“Great uncertainty for business owners dominates their every thought, questions such as would their business be deemed unessential and forced to close, would their business be classified as an essential business, and what would become of their employees should the business be forced to close,” said Tony Gagliardi, Colorado state director for NFIB, which sampled a cross-section of its 300,000 members on May 18. “Our policymakers need to understand that as long as the current level of uncertainty remains present on Main Street, small-business owners will be reluctant to reinvest, expand, and hire new employees.”
From Holly Wade, NFIB Director of Research and Policy Analysis
“Small businesses continue to face many challenges in operating their business in these difficult times. Congress and the Administration have the authority to further lighten the burden for many of their immediate concerns, especially in offering more flexibility for PPP loans.”
According to the U.S. Small Business Administration, as of May 16, the total number of Paycheck Protection Program loans approved for Colorado businesses stood at 96,285 for a total amount of $10,312,546,432. The NFIB poll released today, which is not broken down by state, found 54% of its members expecting 100 percent of the loan to be forgiven after the eight-week forgiveness period. The SBA posted its loan forgiveness application May 15.
Other highlights from the poll show:
- “The 75% payroll rule is difficult for 38% of small business borrowers to manage as 14% find it very difficult and 24% find it somewhat difficult.”
- “Almost one-quarter of those who have taken out one or both loans [PPP and Economic Injury Disaster Loan (EIDL)] anticipate they will need additional support and another 54% do not know yet. Only 20% of borrowers do not anticipate needing additional support.”
- “One-quarter of small business owners report that business operations are severely negatively impacted by the crisis. Thirty-three percent of small business owners report the crisis has significantly impacted their business and another 34% report a somewhat negative impact on business operation. Just 6% have not been impacted and 3% have been positively impacted.”
Click here to read the full report, which includes bar graphs on ‘When Borrowers Received PPP Loan,’ ‘Complying with PPP Loan Terms and Conditions,’ and a pie chart on ‘Percent of PPP Loan Expenses Expected to be Forgiven.’
The SBA, in consultation with the U.S. Treasury Department, also released its loan forgiveness application on May 15.
Keep up with the latest Colorado small-business news at www.nfib.com/colorado or by following NFIB on Twitter @NFIB_CO or on Facebook @NFIB.CO
NFIB is 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 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 www.nfib.com/Colorado.
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