New Research Finds Demand for a Second Wave of PPP Is Strong
The Payroll Protection Program (PPP) has been a lifeline to many businesses. A new study conducted by Barlow Research finds that the PPP was essential to their company's survival, with over half of small businesses ($100K-<$10MM in annual sales revenue) and middle market companies ($10MM-<$500MM in annual sales revenue) reporting that the loan was absolutely/moderately necessary. Barlow Research's report, entitled Managing PPP Forgiveness and Preparing for PPP2, finds six in ten businesses are likely to apply for a second PPP loan if available.
"We are hanging on by a thread. We could use another PPP in the worst way..." $2.5MM-<$5MM Professional sports team management company
Half of the companies that received a PPP loan have already applied for forgiveness. Among the half that have not yet applied, 21% are waiting for their lender to open the application, 17% were advised to wait and 11% said they just hadn't gotten to it yet. Of those advied to wait, the hope is that pending legislation will simplify the process or automatically forgive their PPP loan. Alarmingly, at least seven in ten PPP recipients said they did not learn about the potential tax implications involved in PPP forgiveness until after they applied for a PPP loan.
As businesses await a second phase of PPP loans to become available, the large majority anticipate working with their primary bank as their provider. A $25MM-<$50MM respondent said, "It is our primary bank, so we believe that the loyalty will be worth it." Those that will choose a different lender indicated that they found their initial PPP experience confusing or there was poor communication from their bank.
To purchase this study or to learn more about Barlow Research's offerings/capabilities, please contact insights@Barlowresearch.com. A total of 340 small businesses and 277 middle market companies participated. Fielding occurred December 11 through December 14, 2020.
About Barlow Research
Barlow Research Associates, Inc. (BRAI) was founded in 1980 to provide research services to the financial services industry in the U.S. and globally. BRAI specializes in custom research and syndicated research programs in small business, middle market and digital business banking. BRAI has a wide range of experience in many financial markets and knows the questions to ask and the issues to probe.
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