Goldman Sachs released new national survey data today showing that the first round of PPP helped the vast majority of small businesses stay open, but more support is needed for them to recover and grow.
The survey data is from an initiative by the investment and financial services firm 10,000 Small Businesses Voices, and it comes as small business owners in Louisiana and across the country are calling on Congress and the White House to agree on another relief package.
The survey found that the vast majority of qualified small businesses applied for round two of the Payment Protection Program.
At a national level, 66% of small businesses qualify for a second PPP loan, and 83% of those who qualify have already applied for a second loan. In the South, 65% of small businesses qualify for that second PPP loan with 78% of the qualified businesses applying.
Despite help from the second round of PPP, small businesses still need long-term solutions to survive. Eighty-eight percent of respondents and 95% of Southern business owners say the second PPP loan is absolutely vital or very important to help their business survive.
However, 67% of loan recipients expect to exhaust their funding by April or May, including 65% of Southern business owners. Only 11% of respondents and 11% of Southern business owners are very confident they will be able to maintain payroll if no further government relief is provided. On a personal level, 50% of small business owners nationwide, as well as 50% in the South, have dipped into their personal savings since the pandemic started.
The survey of 1,293 Goldman Sachs 10,000 Small Businesses participants, including 249 from the South, was conducted Feb. 15-16 by Babson College and David Binder Research,. The survey included small business owners from 46 U.S. states and three U.S. territories, 54% of whom were women. See the full report.