By: Multi-unit franchisee | 23,522 readings | 16 actions
75% of eligible small businesses say they would apply or consider applying for a second Paycheck Protection Program (P3) 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 regularly studies the impact of Covid-19 on small businesses and this marks their 13e survey since early March.
“This has been a tough year for small businesses and many of them are still struggling to survive,” said Holly Wade, Executive Director of the NFIB Research Center. “It is clear that the small business community, nearly half of the GDP, needs additional financial assistance to keep its doors open. Small business owners work hard to manage the health and safety of their employees, customers, and themselves while operating their business and complying with local mandates and regulations. “
The main findings of the survey are as follows:
Most PPP borrowers (90%) have spent their entire PPP loan and are ready to request loan forgiveness.
- Thirty-seven percent of borrowers are using the 8 week covered period, 42% are using the extended 24 week period, and 22% are not yet sure which period they are using.
After using the PPP loan, many small business owners plan to lay off employees and need additional financial help.
- Nineteen percent of borrowers expect to lay off employees in the next six months.
- About half (52%) of borrowers expect to need additional financial support in 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 struggling to achieve pre-crisis sales levels.
- Sales levels are still 50% or less than they were before the crisis for about one in five small businesses (21%).
- Twenty-six percent of small businesses have sales levels 50 to 74 percent of pre-crisis levels.
- About a third (34%) of businesses are back or almost where they were, with sales between 75% and 100% of pre-crisis levels and 17% above pre-crisis sales levels.
Thirty-seven percent of small business owners say they expect to have a net operating loss in 2020.
- Twenty-two percent say they don’t know if they will suffer a loss.
- Of those who anticipate a net operating loss in 2020, 34% plan to carry it back when filing their 2020 tax return.
One in five small business owners (20%) say they will have to close their doors if current economic conditions do not improve over the next six months.
- Another 19% of owners predict that they will not be able to operate for more than 7 to 12 months under current economic conditions.
- Sixty-two percent are in a better position and don’t anticipate any short-term problems.