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.”