PROVIDENCE – A new survey from the National Federation of Independent Business found that as of April 17 nearly 80% of small-business owners that had applied for a federal Paycheck Protection Program loan were waiting for funding.
The survey was a random sample of NFIB’s membership database of 300,000 small- business owners. The survey was based on 885 usable responses, the organization said.
Selling Luxury Real Estate Requires More Than Exposure
By Emilio DiSpirito IV License Partner | Private Office Advisor Engel & Völkers Oceanside www.DiSpiritoteam.com…
Learn More
The survey also found that one in five businesses had successfully submitted applications that had been fully processed with funds deposited in the borrower’s bank account.
Of the 80% that were still waiting for funding on April 17, the day the Small Business Administration’s PPP program was depleted of funds, many business owners did not know where their application was in the process, the survey found.
“The [PPP] and Economic Injury Disaster Loan] programs closed while many small employers were still in the process of applying and most self-employed owners were still waiting for banks to begin accepting nonemployer business applications,” the NFIB said.
The survey found that of those sampled, 40% of small-business owners successfully submitted an application for the EIDL program. Of those who requested an EIDL emergency grant (roughly 77% of those applying to the program), only 10% had received grant funds at that time, the NFIB said.
“Small businesses were prepared and ready to apply for these programs, the only financial support options for most, and it is very frustrating that the majority of these true small businesses haven’t received their loan yet,” said Holly Wade, NFIB director of research and policy analysis. “Small businesses make up nearly half of the economy and it’s crucial that their doors stay open.”
As of Tuesday morning, congressional leaders were still negotiating a deal to provide nearly $500 billion in new funds for small businesses.
The full NFIB report may be found online.
