Gov. Holcomb’s Plan Puts Indiana’s Economy Back on Track
Gov. Holcomb outlined a plan to reopen Indiana’s economy. NFIB, the state’s leading small business organization, thanked the Governor for listening to small business owners. Earlier this week, an NFIB survey in Indiana found that small business owners overwhemingly supported reopening the state’s economy in the next 30 days. This afternoon, Gov. Holcomb presented an organized and well thought out plan to do exactly that.
“The Governor listened to small business owners. Our members are desperate to open their businesses – and the state’s economy – back up again. Our members were very clear – 81% want to reopen in the next 30 days. Gov. Holcomb’s plan puts us on that track. It is thoughtful and based on sound data. Indiana will have the testing available to any Hoosier who has symptoms or been exposed to someone with symptoms,” said Barbara Quandt, NFIB State Director in Indiana. “The Governor understands the terrible predicament that small business owners are in. They’ve been hit with a double whammy: first they were forced to shut their doors, and then they were given a horrific federal plan that filled them with hopes of recovery but left them with nothing.”
NFIB’s survey of small business owners was released yesterday. It found that 81% say the reopening should happen in the next 30 days, with 59% saying it should happen immediately. However, small business owners think that the reopening process should happen responsibly: the survey found that 58% of Indiana small business owners felt that the stay-at-home orders should be lifted gradually, while 42% found that it should happen all at once.
The immediate need for financial support for small businesses cannot be overstated. In an earlier survey (March 30), about half of small business owners said they would not be able to continue business operations under current economic conditions for more than 2 months. Small business owners are depleting their savings and other resources to hold on to valuable employees until they receive their loan(s). The longer it takes until loans are deposited, small business owners will increasingly adjust business operations and layoff additional employees in order to survive.
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.
The full survey is available here.