Roughly 14% of business owners who received a loan through the Paycheck Protection Program expect to lay off workers once they deplete their funds, according to a survey published by the National Federation of Independent Business.
The finding comes as lawmakers debate the necessity and contours of another round of federal relief measures for individuals and businesses, and points to the potential fragility of the U.S. economic recovery absent additional aid, CNBC reports.
White House officials credited the program for 2.5 million Americans returning to work in May—a remarkable and unexpected turnaround after nearly 21 million people lost their jobs the month prior amid a shutdown of broad swaths of the U.S. economy.
As a condition of receiving full loan forgiveness, the program requires businesses to rehire furloughed or laid-off workers.
Nearly half—47%—of entrepreneurs who received a PPP loan or a loan through another relief measure, the Economic Injury Disaster Loan program, anticipate needing additional financial support over the next 12 months, according to the NFIB survey.
About 30% of business owners reported sales as of mid-June that were less than half what they were pre-pandemic, according to the business federation, a trade group.
More than half of survey respondents, or 56%, say they would likely need $50,000 or less over the next year, while 27% anticipate needing more than $100,000. About half of the PPP loan recipients who anticipate laying off workers after depleting their funding say they would lay off one to two workers, and 31% say they would lay off three to five. About 12% say they would lay off more than 10 workers. Read the full story.