As 25% of independent businesses say they fear closure, Maine director of federation credits lawmakers for supporting relief bill

(The Center Square) – The most recent economic impact survey by the National Federation of Independent Business (NFIB) shows about one in four businesses could be forced to close without some form of new financial relief.

“Small businesses need urgent consideration of legislation like the Bipartisan Emergency COVID Relief Act of 2020 so we are grateful to the leadership of Sen. Susan Collins (R) and to Sen. Angus King (I) for his active role on the bipartisan negotiating team,” NFIB’s Maine State Director David Clough said in a news release. “They have recognized the needs of small businesses in the Pine Tree State, know that many are struggling to survive, and it is important that our small businesses recover and regain financial strength.”

Among other key findings in the NFIB survey:

• The large majority (91%) of Paycheck Protection Program (PPP) borrowers have spent their entire PPP loan to cover employee pay and other business expenses. Nearly half (45%) of small business owners said they would apply or reapply for a second PPP loan.

• After using the PPP loan, 22% of borrowers still anticipate having to lay off employees in the next six months, up slightly from 19% who said they would need to a month ago.

• One-third of small businesses have applied for an Economic Injury Disaster Loan (EIDL).

• Twenty percent have applied for a state or local grant.

“Many small businesses are facing additional challenges right now related to weather conditions and renewed business restrictions across the country,” said Holly Wade, executive director of NFIB’s Research Center. “The next few months might prove to be the most difficult time for small businesses since the initial shutdown last spring. It is crucial that Congress provides financial relief for small businesses as we head into the winter months.”

This is the NFIB’s 14th Small Business COVID-19 survey since March; the assessment focuses on the pandemic impact on small business operations, economic conditions, and use of targeted small business loan programs.