A report on May 5, 2020 from the National Federation of Independent Businesses (NFIB) headline states that “Small Businesses Finally Receiving Financial Help, 61% Received Funds From PPP Loan.”
The subheading further noted that their survey revealed that “Half applied through small/community bank; Nearly all owners concerned about increased liability claims.”
The entire survey is linked below as a download after the NFIB press release that follows the graphic. Additional pandemic related information, plus an MHProNews analysis and commentary follows.
WASHINGTON, D.C. (May 5, 2020) – The NFIB Research Center released a survey today 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. About 61% of PPP loan applicants have received their loans.
“After the second round of funding, many more small businesses received funding from these federal loan programs,” said Holly Wade, NFIB Director of Research & Policy Analysis. “Now, business owners need guidance on how they can spend the PPP funds in order for them to be forgiven.”
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.
Additional Pandemic Information
The New York Times this morning said “The Airline Business Is Terrible. It Will Probably Get Even Worse.” The left-of-center media outlet added that, “An industry that is intimately familiar with failure confronts a crisis unlike any other. Executives say they have no idea when passengers will return.” Anyone that drives near an airport has likely noticed that air traffic has dropped sharply. The range of economic signals that fact sends, as it touches hospitality, restaurants, business and more is noteworthy. Each of those sectors represent potential customers to housing in general and manufactured homes more specifically.
The same source also noted cases of the Crimson Contagion through the West Wing of the White House staff, with some saying that it is “‘Scary to Go to Work’: White House Races to Contain Virus in Its Ranks.” The Times added that “With two White House staff members testing positive, some officials fear the disease is already spreading rapidly through the West Wing.” MHProNews has previously noted a mainstream media sources such as the Hill and Business Insider that stated that 11 cases of been reported among Secret Service agents.
The Epoch Times provided MHProNews this morning the following snapshot.
MHProNews Analysis and Commentary
While MHProNews has not conducted any similar survey to the NFIB, anecdotal statements from manufactured housing industry processionals tend to confirm the findings of their data.
Every manufactured housing operation contacted by MHProNews has indicated changes that have been made in order to adapt to the COVID19 pandemic. What some are calling the Wuhan Virus or CCP Virus (Chinese Communist Party Virus) has disrupted a range of industries that very much includes manufactured housing.
It is worth noting that NFIB reportedly includes hundreds of manufactured housing connected firms among their estimated 325,000 members. So, it is no surprise that the information dovetails with anecdotal comments made to MHProNews by industry professionals.
Some are seeing in the pandemic “unprecedented opportunities,” while others are fearful that the fallout from the CCP Virus could end their business.
MHProNews is developing and tracking industry related insights on COVID19 information that will be published soon. Watch for it, and if you aren’t already on our ever-growing and industry-leading headline news 2x or 3x weekly emailed updates, you can sign up free in seconds at the link below.
It is worth noting that not only industry professionals, but public officials, investors and others are among those engaging with MHProNews online and via our emailed updates.
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By L.A. “Tony” Kovach – for MHLivingNews.com.
Tony earned a journalism scholarship and earned numerous awards in history and in manufactured housing. For example, he earned the prestigious Lottinville Award in history from the University of Oklahoma, where he studied history and business management. He’s a managing member and co-founder of LifeStyle Factory Homes, LLC, the parent company to MHProNews, and MHLivingNews.com. This article reflects the LLC’s and/or the writer’s position, and may or may not reflect the views of sponsors or supporters.
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