BATON ROUGE – The National Federation of Independent Business Research Center released its latest COVID-19 survey on the impact the pandemic has had on small businesses. Thirteen percent of small business owners report that they will have to close their doors if current economic conditions do not improve over the next six months, down from 25% in December.
“After a year of the COVID-19 pandemic and the challenges that came with it, small business owners are working hard to see a brighter future for their businesses,” said Holly Wade, executive director of NFIB’s Research Center. “Economic conditions seem to be easing for some, but the overall recovery remains uneven across small business industries. It is crucial that small businesses are given the resources and flexibility needed to ensure they will have a successful recovery.”
NFIB Louisiana Director Dawn Starns McVea expressed concern about changes at the federal level that could impact small business owners bottom line.
“One thing holding back Louisiana’s small businesses is the possibility of new employment mandates when the legislature gavels into session next month,” she said. “It’s hard to believe anyone in the legislature would seriously consider doubling the state minimum wage and requiring small businesses to give workers paid sick leave when so many employers are struggling just to keep the doors open and keep people working.”
Key findings from the survey:
- Almost three-quarters (74%) of 2020 Paycheck Protection Program borrowers have applied for loan forgiveness.
- The CAA reopened the PPP application and of those owners who did not receive a first-draw PPP loan in 2020, 20% have applied for a first-draw PPP loan.
- Of those businesses who received a first-draw PPP loan in 2020, 42% have already applied for a second-draw PPP loan and 2% are planning to apply for one.
- Seventy-eight percent of those who have applied for a second-draw PPP loan have been approved and 1% were denied.
- The 25% reduction in gross eligibility rule was the main factor for about three-fourths of those first loan PPP borrowers in not applying for a second-draw PPP.
- The America Rescue Plan Act of 2021 extended the Employee Retention Tax Credit (ERTC) through the end of 2021, however, still very few employers know that it exists.
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