A new study conducted by Barlow Research entitled “Managing PPP Forgiveness and Preparing for PPP2” found six in 10 businesses are likely to apply for a second Paycheck Protection Program loan if they become available. The report also found that more than half of small businesses ($100,000 to below $10 million in annual sales revenue) and middle market companies ($10 million to below $500 million in annual sales revenue) reported that the first PPP loan was absolutely or moderately necessary.
The report showed that half of the companies that received a PPP loan have already applied for forgiveness. Among the half that have not yet applied, 21% are waiting for their lender to open the application, 17% were advised to wait and 11% said they had not gotten to it yet.
Of those advised to wait, the hope is that pending legislation will simplify the process or automatically forgive their PPP loan. At least seven in 10 PPP recipients said they did not learn about the potential tax implications involved in PPP forgiveness until after they applied for a PPP loan.
As businesses await a second phase of PPP loans to become available, the majority anticipate working with their primary bank as their provider.
Those that will choose a different lender indicated that they found their initial PPP experience confusing or that there was poor communication from their bank.
