Small businesses say even second round of PPP loans is not enough

Many small businesses have applied for and received funds from the latest version of the government’s paycheck protection program, but most say they will need more help, a new investigation from Goldman Sachs supplied first to Axios shows.

What is happening: Only 11% of companies that have received a PPP loan say they are very confident that they can maintain their payroll if no further government relief is given and 67% of loan recipients expect to exhaust their second loan funding in April. or may.

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  • The February 15-16 survey of 1,293 Goldman Sachs participants in 10,000 small businesses found that 66% of small businesses qualified for a second PPP loan and 83% of those who qualified had applied for a second loan. PPP.

  • 43% don’t think their business will return to normal until Q4 or 2022.

  • 55% of those who received the loans were able to hire or rehire some employees.

Heads up: The new PPP loans were part of the $ 900 billion relief plan signed by former President Trump in January, and President Biden is expected to temporarily limit large companies to apply, reports Axios.

The big picture: The latest round is shaping up to be like its predecessor: temporary help for some businesses, but far from a panacea for the small business sector.

Watch this place: Only 30% of small business owners said they were very confident they could access a line of credit or a loan for their business from a financial institution, compared to 54% who said they were very confident to be able to access a single pre-pandemic.

Between the lines: Goldman analysts note that financing problems are much worse for black-owned businesses.

  • 73% of eligible black business owners applied for a second P3 loan, compared to 83% of all small business owners.

  • 42% of black business owners who applied for a second P3 loan were approved and received funding (compared to 54% overall).

  • 16% of Black business owners are very confident that they can access a line of credit or loan for their business from a financial institution (30% total).

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