Survey Finds Small Business Sales Volume Up But Ongoing Crisis Continuing To Have Impact
A new survey released by the NFIB Research Center offers insight into the state of small business and the progress with federal loan programs. Twenty-seven percent of owners reported experiencing a significant or moderate increase in sales due to eased restrictions in the states. Another 27% reported a slight increase and 42% of owners said sales levels did not change.
“Small businesses are entering the fourth month of economic crisis and are still experiencing a heavy amount of uncertainty and complications,” said Holly Wade, NFIB Director of Research & Policy Analysis. “Now that owners have more flexibility in using their PPP loan, they can focus on adjusting business operations accordingly as states loosen business restrictions.”
Other key findings from the survey include:
The number of small business owners applying for a Paycheck Protection Program (PPP) loan increased slightly over the last two weeks (through June 23).
- Eighty-one percent of respondents reported applying for a loan compared to 77% as of May 29th.
- Of those who have not applied, only 3% anticipate applying for a loan before the program ends for new applicants.
- Most PPP loan applicants (85%) applied through the bank that they normally use for their business.
Nearly all PPP applications (97%) have received their loans.
- Most PPP borrowers are still using their loan but over the next few weeks, more will have exhausted their funds and will be ready to apply for loan forgiveness.
- Currently, only 3% of PPP loan borrowers have applied for forgiveness.
Over half (59%) of PPP loan borrowers are taking advantage of the extended 24-week forgiveness period.
- Forty percent of borrowers find the new flexibilities (including allowing more of the loan to go towards non-payroll expenses and new FTEE exemptions) very helpful in maximizing loan forgiveness, another 19% find them moderately helpful.
- One-in-ten reported that the original terms were fine for their purposes and 9% of borrowers were not familiar with the recent changes.
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