Nearly 75% of Small Businesses Would Apply or Consider Applying for Second Round of PPP Funding


The NFIB Research Center released its latest survey on the impact COVID-19 has had on small businesses, the 13th survey since early March. If eligible, about 75% of small businesses reported they would apply or consider applying for a second Paycheck Protection Program (PPP) loan. About half (52%) of owners anticipate needing additional financial support over the next 12 months.

“This has been a difficult year for small businesses and many of them are still struggling to survive,” said Holly Wade, Executive Director of NFIB’s Research Center. “It’s clear that the small business community, nearly half of the GDP, need additional financial assistance to keep their doors open. Small business owners are working hard to manage the health and safety of their employees, customers, and themselves while operating their business and complying with local mandates and regulations. Despite the current political climate, small businesses need Congress and the Administration to act on pro-small business legislation that would ease the financial burden COVID-19 has put on their business.”

Key findings from the survey include:

Most PPP borrowers (90%) have spent their entire PPP loan and are ready to apply for loan forgiveness.

  • Thirty-seven percent of borrowers are using the 8-week covered period, 42% are using the expanded 24-weeks, and 22% are not yet sure which covered period they are using.

After using the PPP loan, many small business owners are anticipating laying off employees and needing additional financial assistance.

  • Nineteen percent of borrowers anticipate having to lay off employees in the next six months.
  • About half (52%) of borrowers anticipate needing additional financial support over the next 12 months.
  • If eligible, 44% of small business owners would apply or re-apply for a second PPP loan and 31% would consider applying.

Owners are deciding which PPP loan forgiveness application to use.

  • Twenty-eight percent of borrowers have or plan to use the 3508EZ forgiveness application form and 20% are using the new 3508S application form.
  • Fourteen percent report that they have or will use the original, longer 3508 application form.
  • Thirty-nine percent of owners are not sure which forgiveness application form they will use.

Few PPP lenders are currently accepting forgiveness applications, which is reflected in the low number of submitted applications.

  • About one-in-four (26%) of borrowers have submitted the PPP loan forgiveness application, up from 16% a month ago.
  • Thirty-four percent of borrowers are not yet ready to submit their forgiveness application and 39% are ready, but their bank is not yet accepting applications.

About one-third (34%) of small business owners have applied for an Economic Injury Disaster Loan (EIDL).

  • The majority (82%) of applicants had their loan approved, 14% of applicants were denied.
  • Twenty-seven percent of those who received a PPP loan also received an EIDL emergency advance grant.

Many state and local governments have offered their own small business grant programs to provide additional financial assistance.

  • Nearly one-in-five (18%) of small business owners have applied for a state or local grant and 59% of them received one.

Very few employers have applied for the Employee Retention Credit, a refundable tax credit.

  • Zero percent of owners reported applying, likely because this program is limited to those who have not received a PPP loan, and of those who are eligible, many are likely unfamiliar with the program.

Small businesses are working to get to pre-crisis sales levels.

  • Sales levels are still 50% or less than they were pre-crisis for about one-in-five (21%) small businesses.
  • Twenty-six percent of small businesses are at sales levels of 50%-74% of pre-crisis levels.
  • About one-third (34%) of businesses are back or nearly back to where they were with sales between 75%-100% of pre-crisis levels with another 17% exceeding pre-crisis sales levels.

Thirty-seven percent of small business owners report they anticipate having a net operating loss in 2020.

  • Twenty-two percent report they do not know if they will have a loss.
  • Of those who anticipate a net operating loss in 2020, 34% of them plan to carry it back when they file their 2020 tax return.

One-in-five (20%) 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.

  • Another 19% of owners anticipate they will be able to operate no longer than 7-12 months under the current economic conditions.
  • Sixty-two percent are better situated and do not anticipate any near-term problems.

Most small business owners do not expect business conditions to improve to normal levels until next year at the earliest.

  • Only 5% of owners anticipate conditions improving to normal levels by the end of the year, 5% say that conditions are back to normal now.
  • Over half (59%) of owners anticipate it taking until sometime in 2021 and 24% anticipate sometime in 2022.
  • Eight percent expect conditions not to fully improve until after 2022.

One-in-four (25%) of small business employers have had an employee take COVID-19 related paid sick leave or family leave as mandated and offered through the Families First Coronavirus Response Act (FFCRA).

  • Only 38% of owners have claimed the tax credit or an advance refund for reimbursement of those costs, however, this is up from 29% a few months ago.

Small business employers are managing the health and safety of their employees, customers, and themselves.

  • Twenty-one percent of small employers are very concerned about their employees contracting COVID-19, with another 21% moderately concerned.
  • Thirty percent of owners are “very” or “moderately” concerned about contracting COVID-19 themselves while operating their business, and another 34% are somewhat concerned.

This publication marks NFIB’s 13th Small Business COVID-19 survey assessing the health crisis impact on small business operations, economic conditions, and utilization of the targeted small business loan programs. The first series was published in early March 2020 with subsequent publications every 2-3 weeks, found here. The full survey of the 13th edition is available here.

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