Effects of COVID-19 impact expected to be more severe and longer in Hawaii
News Release from NFIB-Hawaii, June 24, 2020
HONOLULU, June 24, 2020—Results from a national survey of small-business owners released yesterday by their leading association revealed a variety of information on such things as the use of the two federal loan programs, how many would be using the extended forgiveness period, how many will need more money, and awareness of the tax deferment provision.
“Hawaii business owners are experiencing a dearth of tourism revenue as statewide travel and quarantine restrictions remain in effect,” said NFIB Hawaii state director Melissa Pavlicek. “While most small businesses across the country report COVID-19 impacts, the effects are expected to be more severe and longer in Hawaii.”
Key findings from the survey include:
- The number of small business owners applying for a Paycheck Protection Program (PPP) loan increased slightly over the last two weeks.
- Nearly all PPP applications (97%) have received their loans.
- Over half (59%) of PPP loan borrowers are taking advantage of the extended 24-week forgiveness period.
- Some owners report having to adjust their workforce to reflect the economic environment with 14% of PPP loan borrowers anticipating having to lay off employees after using the loan.
- Over one-third of owners (35%) have applied for an Economic Injury Disaster Loan (EIDL) and most are still waiting for their loan to be processed.
- Economic conditions have improved for many small business owners over the last month as states have eased business restrictions and stay at home orders.
- The economic and health crisis is lasting much longer than the PPP’s initial design of primarily supporting two months of payroll and limited non-payroll expenses, and of the EIDL’s reduced loan distributions.
- About 41% of respondents are familiar with the new tax deferment provision and about 6% of respondents have taken advantage of it.
- Most small business owners have had to adjust their business operations to some degree due to the COVID-19 health crisis.
“Small businesses are entering the fourth month of economic crisis and are still experiencing a heavy amount of uncertainty and complications,” said Holly Wade, NFIB Director of Research & Policy Analysis. “Now that owners have more flexibility in using their PPP loan, they can focus on adjusting business operation accordingly as states loosen business restrictions.”
Click here to read NFIB’s national news release on the survey results, or here to go right to the survey.
Keep up with the latest Hawaii small-business news at www.nfib.com/hawaii or by following NFIB on Twitter @NFIB_HI.
For more than 77 years, NFIB has been advocating on behalf of America’s small and independent business owners, both in Washington, D.C., and in all 50 state capitals. NFIB is a nonprofit, nonpartisan, and member-driven association. Since its founding in 1943, NFIB has been exclusively dedicated to small and independent businesses and remains so today. For more information, please visit nfib.com.