A new survey of Alabama’s small business owners was released Monday. It revealed that 50% of all proprietors would apply for a second Paycheck Protection Program (PPP) loan if available.
An additional 22% said they “might apply” for a new loan, for a total of 72% considering government support. Those results indicate ongoing strife for local firms amid the coronavirus pandemic, as it is only a small drop from the 75% of those surveyed who said they applied for and received a PPP loan in the spring.
The National Federation of Independent Business (NFIB) conducted the survey through its state office in Alabama. The director of that office, Rosemary Elebash, said in a statement, “This spring and summer were tremendously challenging for Alabama’s small businesses, and it may be months before things get back to normal.”
The Paycheck Protection Program was passed by the U.S. Congress in the spring to provide relief for American businesses hurt by COVID-19. The program closed to new applicants on August 8.
Over 70,000 PPP loans were given to companies located in Alabama, totaling over $6 billion in relief. A new, simplified form is available that allows those who are receiving loans of less than $50,000 to apply for forgiveness on their remaining balance.
NFIB’s survey also reported that 80% of Alabama businesses reported pandemic caused “shortages or shipping delays” in their supply chains. More than one-quarter of the state’s independent companies had an employee take time off work due to the coronavirus.
Only 15% of business owners reported applying for a Revive Alabama Grant, a $100 million program established by state government officials to help businesses negatively affected by the pandemic. Financial damage listed on the application for a PPP grant cannot be listed again on a Revive Alabama Grant application.
“We encourage the Alabama Legislature and Congress to take every action they can to help our small businesses get through this economic crisis and avoid cutting jobs and closing their doors for good,” concluded Elebash.
Henry Thornton is a staff writer for Yellowhammer News. You can contact him by email: [email protected] or on Twitter @HenryThornton95
