Half of Small Businesses Applied for PPP And 78 Percent Received Some Portion

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Half of Small Businesses Applied for PPP And 78 Percent Received Some Portion

New survey data reveals impact of COVID-19 on small businesses

Nearly half (44%) of small businesses have received delays for existing loan payments as of June, up from only 20% of small businesses surveyed in April, according to new data gathered by SCORE, the nation’s largest network of volunteer, expert small business mentors. A third (37%) of small businesses have received new, non-governmental loans, and a quarter (26%) have received improved payment terms from vendors.

Established small businesses (defined as in business for one year or more) are receiving more non-government financial help over time, specifically in the form of delays for existing loan payments, and new loans:

  • 44% of small businesses have received delays for existing loan payments as of June, up from 20% in April.
  • 37% of small businesses have received new loans as of June, up from 3% in April.
  • 26% of small businesses have received improved payment terms from vendors as of June, up from 7% in April.
  • 12% of small businesses have received support from crowdfunding or other community requests as of June, up from 3% in April.
  • 11% of small businesses have received expanded lines of credit as of June, up from 4% in April.

Half (55%) of established small businesses applied for PPP and 78% that applied received some portion:

  • 65% of small businesses that applied for PPP received the full amount requested.
  • 13% of small businesses that applied for PPP received a portion of the amount requested.
  • 22% of small businesses that applied for PPP did not receive anything.

Since March 2020, roughly half (47%) of established small businesses have let go of employees in some capacity, but 50% hope to hire in a year:

  • 37% of established small businesses have furloughed or temporarily laid off employees.
  • 34% have made no change.
  • 31% have reduced employee hours or pay.
  • 10% have fired employees.
  • 9% have hired new employees.

Established small businesses are implementing COVID-19 customer communications and adapting their business plans in order to better serve customers:

  • 43% of established small businesses have implemented COVID-19 customer communications.
  • 27% have focused on new target markets.
  • 25% have added telephone appointments.
  • 25% have made no changes.
  • 24% have changed their business model.
  • 23% have added new products or services.
  • 20% have added enhancements to their online storefront.
  • 19% of startups are adding delivery and pick-up options.

Established small businesses are providing employees with protective equipment (PPE), and revised work policies:

  • 57% of established small businesses have provided protective equipment (PPE).
  • 50% have revised employee policies.
  • 40% have implemented teleworking.
  • 25% have implemented employee health screenings.
  • 25% have staggered employee schedules.
  • 24% have made accommodations for at-risk employees.
  • 19% have made no changes.
  • 17% are cross-training as backup in caseworkers are absent.

Small businesses are cleaning more, adjusting spaces, and changing hours:

  • 57% of established small businesses are deep cleaning.
  • 40% have adjusted business hours.
  • 37% have a limited number of customers.
  • 33% have made changes to the physical space.
  • 26% have made no changes.
  • 12% have consulted with insurance and lawyers to protect against lawsuits.
  • 11% have found additional suppliers as a backup.

Download the infographic for more information on how established small businesses are obtaining financing and adapting their operations during COVID-19.

“Small businesses are beginning to receive the financial assistance needed to offset lower revenues and pay for additional business costs related to COVID-19,” said SCORE CEO Bridget Weston. “Still, data shows that small business owners aren’t just waiting around for help; they’re being proactive by switching up their business plans, targeting new markets and getting free, expert small business help from SCORE.”

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