Most Small Firms Report Not Yet Getting Money From Virus Funds

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Most small businesses that applied for two government coronavirus relief programs haven’t received any money yet, with most still planning to apply when funds ran out last week, a new survey shows.

Only about 20% of small businesses that applied for a loan under the Paycheck Protection Program, or PPP, had money deposited in their account as of April 17, according to a survey that the National Federation of Independent Business conducted of its members. Few members received funds under the Economic Injury Disaster Loan initiative, or EIDL, a virus aid program that’s separate from PPP, the survey showed.

“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,” Holly Wade, NFIB director of research and policy analysis, said in a statement.

The $349 billion that Congress allocated for PPP, in which the U.S. Small Business Administration guaranteed loans for lenders to disburse, was exhausted on Thursday after just 13 days. The SBA also stopped accepting applications for coronavirus-related EIDL funding last week when the $17 billion allocated for that program ran out.

The Senate plans to meet Tuesday for a potential vote on a measure that includes more funding for both programs.

Almost three-quarters of NFIB members who responded to the survey said they applied for a PPP loan, while 26% said they were in the process of submitting an application when funding ran out. The NFIB said it didn’t ask how many members who applied had been approved but not yet funded. – READ MORE

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