Half applied through small/community bank; Nearly all owners concerned about increased liability claims
WASHINGTON, D.C. (May 5, 2020) – The NFIB Research Center released a survey today on the small business loan programs. Small business owners were asked about the Paycheck Protection Program (PPP) and the Economic Injury Disaster Loan (EIDL) programs. The PPP is very popular among small businesses, with 77% of owners (NFIB members) reporting they have successfully submitted an application. About 61% of PPP loan applicants have received their loans.
“After the second round of funding, many more small businesses received funding from these federal loan programs,” said Holly Wade, NFIB Director of Research & Policy Analysis. “Now, business owners need guidance on how they can spend the PPP funds in order for them to be forgiven.”
Key findings of the survey include:
The majority of small businesses have applied for a PPP loan.
- About 84% of applications were submitted before April 17, when the program was suspended for funding, and 16% of applications were submitted after April 17.
- Half of applicants submitted their application through a small or local bank, 18% submitted through a medium-size bank, 14% submitted through a large bank, and 4% through a financial technology (FinTech) lender.
Over half of owners have received their PPP loan.
- Forty percent of applicants are still waiting, but just under half of those waiting (45%) have received notice that their loan is approved.
- Just over half (55%) of applicants who have not received a loan are still waiting to hear from their financial institution about their loan status.
Under half of respondents applied for an EIDL.
- About 40% of respondents submitted a loan application for an EIDL and 60% of them applied before April 1.
- The vast majority (75%) of EIDL applicants also requested the EIDL Emergency Grant.
Owners are most concerned with getting customers back to their business.
- Virtually all small business owners are, to some degree, concerned about increases in liability claims with 38% very concerned about increased liability when re-opening their business.
The full survey is available here.