WASHINGTON, D.C — Only 20% of U.S. small business owners who applied for a loan under the federal Paycheck Protection Program report their applications have been processed successfully, according to the National Federation of Independent Business (NFIB).
The remaining 80% of respondents to a recent NFIB survey said they are still waiting to hear from their banks, and many do not know where they are in the application process, the Washington-based trade group said, noting the PPP program had run out of funds as of April 17.
"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," Holly Wade, NFIB Director of Research & Policy Analysis, said, noting that small businesses make up nearly half of the nation's economy.
The NFIB said its survey reveals that three-fourths of small business owners in the U.S. applied for PPP loans.
About one-third of small business owners told the NFIB they believe their community will be back to a normal level of economic activity by year-end, but nearly 40% believe it won't be until 2021 until more normal levels of economic activity return.
A quarter of survey respondents said they believe it will 2022 or later before the economy returns to normal.
Other key findings of the NFIB survey include:
- About 40% of small business owners successfully submitted an application for an Economic Injury Disaster Loan (EIDL) through the Small Business Administration website.
- Among those who submitted an application, most (77%) requested the emergency grant of up to $10,000.
- Of those who requested the EIDL emergency grant, about 10% have received the funds.
- Essentially, all of the EIDL applicants (99%) have yet to receive the loan.