Small Business Owners Looking For Second Round Of PPP Loans
75% of eligible small businesses say they would apply or consider applying for a second Paycheck Protection Program (PPP) loan, and about half (52%) of small business owners anticipate needing additional financial support over the next 12 months. The findings are part of a new survey conducted by the NFIB Research Center. The group’s been regularly studying the impact of Covid-19 on small businesses and this marks their 13th survey since early March.
“This has been a difficult year for small businesses and many of them are still struggling to survive,” said Holly Wade, executive director of NFIB’s Research Center. “It’s clear that the small business community, nearly half of the GDP, need additional financial assistance to keep their doors open. Small business owners are working hard to manage the health and safety of their employees, customers, and themselves while operating their business and complying with local mandates and regulations.”
Key findings from the survey include:
Most PPP borrowers (90%) have spent their entire PPP loan and are ready to apply for loan forgiveness.
- Thirty-seven percent of borrowers are using the 8-week covered period, 42% are using the expanded 24-weeks, and 22% are not yet sure which covered period they are using.
After using the PPP loan, many small business owners are anticipating laying off employees and needing additional financial assistance.
- Nineteen percent of borrowers anticipate having to lay off employees in the next six months.
- About half (52%) of borrowers anticipate needing additional financial support over the next 12 months.
- If eligible, 44% of small business owners would apply or re-apply for a second PPP loan and 31% would consider applying.
Small businesses are working to get to pre-crisis sales levels.
- Sales levels are still 50% or less than they were pre-crisis for about one-in-five (21%) small businesses.
- Twenty-six percent of small businesses are at sales levels of 50%-74% of pre-crisis levels.
- About one-third (34%) of businesses are back or nearly back to where they were with sales between 75%-100% of pre-crisis levels with another 17% exceeding pre-crisis sales levels.
Thirty-seven percent of small business owners report they anticipate having a net operating loss in 2020.
- Twenty-two percent report they do not know if they will have a loss.
- Of those who anticipate a net operating loss in 2020, 34% of them plan to carry it back when they file their 2020 tax return.
One-in-five (20%) of small business owners report that they will have to close their doors if the current economic conditions do not improve over the next six months.
- Another 19% of owners anticipate they will be able to operate no longer than 7-12 months under the current economic conditions.
- Sixty-two percent are better situated and do not anticipate any near-term problems.
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