A survey by the National Federation of Independent Businesses said four out of five small business owners who applied for the Paycheck Protection Program were not selected to receive money. And many are at a loss for where they are in the application process.
The numbers are worse for the emergency grants that were supposed to come from the Small Business Administration through the Economic Injury Disaster Loan, or EIDL, program. The survey found nine out of 10 small businesses that applied for an emergency grant of up to $10,000 were still waiting.
Holly Wade, NFIB director of research & policy analysis, said the survey results were very discouraging.
“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,” she said.
“Small businesses make up nearly half of the economy, and it’s crucial that their doors stay open.”
It’s a reason that small business owners have little confidence moving forward.
The survey showed 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.
Eileen Kean, state director of NFIB in New Jersey, said she’s at a loss for words.
“It is a difficult conversation when a small business owner calls saying their loan wasn’t accepted merely because the funds were depleted and their application wasn’t even processed,” she said. “Right now, without more federal funding, it isn’t worth speculating about economic recovery, because it will be impossible.
“Congress must vote to add funds to the program as soon as possible because it’s a question of survival.”
Congress has indicated a vote allocating more funds could come as soon as Wednesday. Whether such funds would actually reach small business owners is another thing altogether.
The full survey is available here.