PPP Small Business Loan Survey

April 6, 2020

ABOUT BUSINESSES FOR RESPONSIBLE TAX REFORM

▪ BRTR is a coalition of business leaders calling for policies that truly benefit America’s small business owners, are fiscally responsible, and grow the economy

SURVEY SUMMARY

▪ From April 3-5, 2020, BRTR conducted a snap survey of 534 small business owners in our national network to learn about their experience applying for a Paycheck Protection Program loan, part of the CARES Act passed by Congress to help small businesses impacted by COVID-19

▪ The first day to apply for a PPP loan was Friday, April 3

▪ Results found the majority of respondents (63%) tried to apply for a PPP loan on April 3 but most (52%) were unable to submit an application to a lender

▪ The most common reasons they could not apply were their lender didn’t have its PPP loan program ready (52%) or it was waiting for federal guidance from the federal government (46%)

▪ 75% of respondents need the money from the PPP loan within a month or say their business with fail, 21% have a week or less

RESULTS: 75% NEED PPP MONEY WITHIN A MONTH OR BUSINESS WILL FAIL

How long can you wait for the money to arrive for a PPP loan before your business fails?

▪ 75% of respondents need the money from the PPP loan within a month or say their business with fail

7%

14%

21%

10%

23%

13%

7%

4%

RESULTS: MAJORITY HAVE A MONTH OR LESS OF CASH ON-HAND

How much cash reserve do you currently have to operate your business?

▪ 85% of respondents have a month or less of cash on-hand to operate their business; 21% have a week or less, and 13% have none

▪ Only 16% have more than a month

13%

21%

20%

9%

22%

16%

RESULTS: MAJORITY TRIED TO APPLY FOR A PPP LOAN ON APRIL 3

▪ 63% of survey respondents said they tried to apply for a PPP loan on Friday, April 3, 2020

Did you try to apply for a Payroll Protection Program loan on Friday, April 3, 2020?

63%

37%

RESULTS: MAJORITY WERE NOT ABLE TO SUBMIT AN APPLICATION

▪ The majority (52%) were not able to submit an application to a lender

Were you able to submit an application to a lender?

48%52%

RESULTS: LENDERS UNPREPARED, WAITING FOR FURTHER GUIDANCE

▪ The most common reasons small businesses gave for not being able to apply for a PPP loan was because their lender didn’t have its PPP program ready (52%) or it was waiting on guidance from the federal government (46%)

If you were not able to apply, was it because your lender...

*Respondents could choose multiple answers, so figures won’t total 100%

RESULTS: OF THOSE SUBMITTED, TINY FRACTION APPROVED

▪ 87% of respondents who were able to submit an application did not get their loan approved yet

Did you get your loan approved?

87%

13%

TOPLINES

BRTR COVID-19 Small Business Response Survey Toplines

534Total Responses

Methodology:Survey Monkey survey of Businesses for Responsible Tax Reform small business networkFielded April 3-5, 2020

Q2: Do you own or manage a small business?

Q2: Do you own or manage a small business?Answered: 957 Skipped: 6

Q3: How many people does your small business employ?Answered: 924 Skipped: 39

Q4: Did you try to apply for a Paycheck Protection Program loan on Friday, April 3?Answered: 917 Skipped: 46

Q5: Were you able to submit an application to a lender?Answered: 582 Skipped: 381

Q6: If yes, did you get your loan approved?Answered: 254 Skipped: 709

Q7: If no, was it because your lender (check all that apply)Answered: 299 Skipped: 664

Q8: How much cash reserve do you currently have to operate your business?Answered: 543 Skipped: 420

Q9: How long can you wait for the money to arrive for a PPP loan before your business fails?Answered: 534 Skipped: 429