Nearly All Business Owners Concerned About Increased Liability Claims

(UNDATED) – The NFIB Research Center released a survey on the small business loan programs.

Small business owners were asked about the Paycheck Protection Program (PPP) and the Economic Injury Disaster Loan (EIDL) programs. The PPP is very popular among small businesses, with 77% of owners (NFIB members) reporting they have successfully submitted an application.

Barbara Quandt, NFIB State Director in Indiana

“At last, there’s some good news here. Half of small businesses have now received some relief and Indiana is beginning to reopen for business which is definitely good news. However, we are nowhere near out of the woods,” said Barbara Quandt, NFIB State Director in Indiana. “Small business owners are worried about getting customers back and the looming threat of liability claims. It is clear small businesses are going to need lots of support to recover.”

Key findings of the survey include:

The majority of small businesses have applied for a PPP loan.      

  • About 84% of applications were submitted before April 17, when the program was suspended for funding, and 16% of applications were submitted after April 17.
  • Half of applicants submitted their application through a small or local bank, 18% submitted through a medium-size bank, 14% submitted through a large bank, and 4% through a financial technology (FinTech) lender.

Over half of owners have received their PPP loan.

  • Forty percent of applicants are still waiting, but just under half of those waiting (45%) have received notice that their loan is approved.
  • Just over half (55%) of applicants who have not received a loan are still waiting to hear from their financial institution about their loan status.

Under half of respondents applied for an EIDL.

  • About 40% of respondents submitted a loan application for an EIDL and 60% of them applied before April 1.
  • The vast majority (75%) of EIDL applicants also requested the EIDL Emergency Grant.

Owners are most concerned with getting customers back to their business.

  • Virtually all small business owners are, to some degree, concerned about increases in liability claims with 38% very concerned about increased liability when re-opening their business.

The full survey is available here.

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