PROVIDENCE – Most businesses qualify for and have been able to receive a second Paycheck Protection Program loan, but they say more help is needed, according to a new survey through Goldman Sachs 10,000 Small Businesses Program.
The survey shows that roughly two-thirds of small-business survey takers met eligibility requirements for a second, forgivable payroll loan, and of those, 82% have already applied.
The loans continue to have a major impact, too, with 55% able to hire or rehire employees thanks to the funding, and 88% saying the second loan is “absolutely vital” to maintaining their payrolls.
However, with two-thirds expecting the second-round funding will run dry by May, and only 11% expecting to maintain payroll without it, more help is needed. More than 80% of survey takers specifically backed a new loan program that would offer access to longer-term capital, access for which has diminished since COVID-19 hit.
The survey also shows the disproportionate harm for Black business owners, who are less likely to apply for and be approved for second-round loan funding and are less confident in their ability to access a line of credit or loan if needed.
The survey reflects results from just under 1,300 small businesses that have participated in Goldman Sachs’ program throughout the country.
Nancy Lavin is PBN staff writer. You may reach her at Lavin@PBN.com.
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