Key findings from the survey include:
The health crisis has had a negative impact on almost all small businesses.
- A third (33%) of owners are experiencing severe negative impact on their business.
- Nearly another third are experiencing significant impact.
- Only 14% are experiencing a positive impact, with 4% experiencing no impact.at all.
The majority of small businesses expect their expenses to be forgiven.
- Over half (56%) of owners with a PPP loan are expecting all of their expenses to be forgiven.
- Nineteen percent of borrowers expect at least 75% or more of loan expenses to be forgiven.
- Just under 30% of borrowers are interested in using the funds as a low interest, two-year loan.
Complying with the PPP loan and loan forgiveness terms and conditions is challenging for small businesses.
- Sixteen percent of borrowers report that spending the PPP loan within an 8-week forgiveness period is very difficult and 41% find the requirement somewhat difficult.
- Almost one-in-five borrowers find the forgiveness requirement that the borrower’s employee headcount match the pre-crisis employee headcount very difficult to reach since many businesses have already laid-off workers due to slower sales or suspended business activity.
- Another 27% find it somewhat difficult to maintain or return to their pre-crisis workforce level.
- The 75% payroll rule is difficult for 47% of small business borrowers to manage as 27% find it very difficult and 20% find it somewhat difficult
Owners have questions about how to spend the funds.
- Seventy percent of small business borrowers find the terms and conditions of the PPP loan difficult to understand with 27% finding them very difficult.
Majority of EIDL applicants requesting grant component.
- Nearly half (49%) of small business owners have submitted an application for an EIDL loan.
- A third requested the emergency grant as part of their submission.
- 63 percent of applicants have had their EIDL grant deposited into their bank account but only 32% have had their EIDL loan approved.
Additional financial support over the next 12 months may be needed for many small business owners.
- Thirty percent of those who have taken out one or both loans anticipate that they will need additional support and another 28% do not know yet. Only 18% of borrowers do not anticipate needing additional support.
- In addition, or as an alternative, to the PPP and EIDL loans, 35% of business owners have sought other financial assistance such as borrowing from friends and family, bank loans, local or State grants.
Some small business owners find themselves competing with the unemployment benefits offered through the CARES Act.
- Ten percent of small business owners have had an employee decline a job offer because they wanted to stay on UI.
- Another 3% of owners have increased salaries to encourage a worker to come back to their job.
Five percent of small business owners said that an employee has remained in their job because they also received supplemental UI benefits with reduced hours.
Full report, download here.