Wed, Dec 9th, 2020 - 5:35pm
August 26, 2020 - 2:51pm | By Chris Larson
The following news release comes from the NFIB:
Today, North Dakota Small Business owners across the state are thanking U.S. Senator Kevin Cramer for co-sponsoring the bipartisan Paycheck Protection Small Business Forgiveness Act. That’s because according to NFIB’s most recent member survey, which was released yesterday, nationally one in five small business owners will have to close their doors in the next six months if economic conditions don’t improve.
The bill would streamline the forgiveness aspect of PPP loans under $150,000 if the borrower submits a simple, one-page form to the lender. About 4.2 million of the PPP loans are fewer than $150,000. That’s about 85% of all the PPP loans that were approved, but just 26% of the funds delivered.
The bill has earned the support of NFIB, and today NFIB State Director in North Dakota, Alison Ritter, reacted to the dire numbers in NFIB’s latest member survey. “This is exactly the kind of bipartisan legislation small business owners need right now. This bill would get burdensome paperwork off the plate of North Dakota small business owners, who are busy making sure their employees and customers are safe in the midst of an economic and health crisis. Thanks to Sen. Cramer for recognizing small businesses want to focus on paying their employees and keeping their doors open, not deal with loads of paperwork."
Congress is currently negotiating additional financial support for small businesses after the initial Paycheck Protection Program (PPP) loan period expired on August 8. According to NFIB’s latest survey, if eligible, 44% of small businesses surveyed said they would apply or re-apply for a second PPP loan with another 31% saying they would consider applying for one.
Nationally, about one-in-five (21%) of small business owners report they will have to close their doors if 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 current economic conditions.
- Over half (61%) are better situated and do not anticipate any near-term problems.
Most PPP borrowers (84%) have now used their entire loan, up from 71% in July.
- The 16% of borrowers are likely not far behind on spending.
- Most PPP borrowers (81%) applied for the loan through the financial institution that they normally use for business purposes.
- About 43% of borrowers plan to use the EZ form when applying for loan forgiveness.
Almost half of PPP loan borrowers (47%) 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.
- Another 31% would consider applying for one.
About one-in-five (21%) of small business owners report they will have to close their doors if 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 current economic conditions.
- Over half (61%) are better situated and do not anticipate any near-term problems.
