80 percent of MI PPP applicants waiting for financial help

The NFIB Research Center released a survey recently on the small business loan programs.

Small business owners were asked about the Paycheck Protection Program and the Economic Injury Disaster Loan on April 17, the day after the programs ran out of money.

About 20% of submitted applications have been fully processed with funds deposited in the borrower’s account, but 80% of respondents said they are still waiting, and many do not know where they are in the application process.

Most small business owners believe it will take beyond 2020 to recover from the economic impact of COVID-19, with only one-third of small business owners believing their community will get back to a normal level of economic activity by the end of the year.

A quarter of owners believe it will not be until 2022 or later before the economy returns to normal.

“While we appreciate the efforts to help small business owners with loans and other financial assistance, it is abundantly clear that the most effective way to help Michigan Main Street at this time is to implement a plan to get businesses open and everyone back to work,” said NFIB State Director in Michigan, Charles Owens. “There are proposals being offered by the legislature and promises of a proposal from the Governor. We desperately need a consensus proposal on April 30th when lawmakers return to the capitol.”

Key Findings of the Survey Include:

About three-quarters of small business owners (almost all employer businesses) have submitted an application for a PPP loan as of April 17.

  • About one-in-five (20%) of submitted applications have been fully processed with funds deposited in the borrower’s account.
  • Nearly 80% are still waiting, many not knowing where they are in the process.

About 40% of small business owners successfully submitted an application for an EIDL through the SBA 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.

Most small business owners believe it will take beyond 2020 and into the years following to get back to normal economic activity.

  • About one-third of small business owners believe their community will be back to a normal level of economic activity by the end of the year.
  • Just under 40% believe more normal levels of economic activity will return in 2021.
  • A quarter of owners believe it will not be until 2022 or later before the economy returns to normal.

The full survey is available here.

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