The National Federation of Independent Business says a survey found that, among its membership, 80 percent of the companies applied for a Paycheck Protection Program (PPP) loan and almost 90 percent of those received one. Most of the loans were deposited between mid-April and mid-May.
Key findings from the survey include:
• The majority (54 percent) of small businesses expect their expenses to be forgiven.
• Very few PPP borrowers are interested in using the funds as a low interest, two-year loan.
• Complying with the PPP loan and loan forgiveness terms and conditions is challenging for small businesses.
• Twelve percent of borrowers report that spending the PPP loan within an eight-week forgiveness period is very difficult, and 34 percent find the requirement somewhat difficult.
• Almost one-in-five borrowers find the forgiveness requirement that the borrower’s employee headcount match the pre-crisis employee headcount very difficult to reach, given that many businesses have already laid-off workers due to slower sales or suspended business activity.
• Another 28 percent find it somewhat difficult to maintain or return to their pre-crisis workforce level.
• Nearly three-fourths of small business borrowers find the terms and conditions of the PPP loan difficult to understand, with 22 percent finding them very difficult.
• Additional financial support over the next 12 months may be needed for many small business owners. Only 20 percent of borrowers do not anticipate needing additional support.
• Some small business owners find themselves competing with the unemployment benefits offered through the CARES Act. Eighteen percent of small business owners have had an employee decline a job offer because they wanted to stay on unemployment.
To read a PDF of the full survey, click here.
