August 3, 2020
By: Caity Witucki
Contributing Editor, Main Street Monday
Main Street Monday – NFIB Survey Finds The Majority of Small Businesses Have Used Their Entire PPP Loan
According to a recent NFIB Research Center survey on the state of small business and the Paycheck Protection Program (PPP), most small business owners (71%) have used their entire PPP loan. However, 46% of borrowers say they anticipate needing additional financial support in the next six months.
“Current economic conditions are putting significant stress on small business owners struggling to balance lower sales, expenses, and longer-term sustainability,” says Holly Wade, NFIB Director of Research & Policy Analysis. “Even for those owners who have exhausted their PPP loan, the economic conditions have not yet returned to levels that can support business activity for many.”
Here are the key findings from the study:
- Some small business owners (21%) have or anticipate having to lay off employees after using their PPP loan.
- About 23% 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.
- Over one-third (35%) of small business owners are “very” or “moderately” concerned about contracting COVID-19 themselves while operating their business.
- Most small business owners (69%) expect business conditions to improve to normal levels by the end of 2021.
- Over half (56%) of small businesses report that they are better situated to the current economic conditions.
“Small business owners generally anticipate a slow recovery. Economic conditions for many remain erratic with shifts in reopening policies and changes in virus outbreaks,” reads the survey. “Challenges will continue as small business owners navigate new obstacles in operating their business, erratic government policies and uneven economic growth. Some small business owners will require additional financial support to help pay expenses as business restrictions continue to depress sales. It will continue to be a hard year for many small business owners.”