66% Of Small Business Owners Still Wait for CARES Act Relief

BOSTON, May 5, 2020 /PRNewswire/ -- Alignable's Coronavirus Impact Poll of 13,600 small business owners from May 1-4, 2020, shows only 28% have received federal money so far, after more than a month trying to stay afloat with cash reserves dwindling. That leaves a whopping 66% of small business owners who applied for federal relief under the CARES Act Payroll Protection Program wondering if or when it will actually arrive.

Here's a rundown of the poll results:

• 28% of small business owners were approved and received funding
• 16% were approved, but don't have funds yet
• 32% applied, but await bank approval
• 18% tried, but were unsuccessful in getting a bank to submit their application
• 6% were denied
• 44% reported their businesses have closed
• 47% reported having only one month of cash reserves left

Most poll respondents working with larger banks, including JP Morgan Chase, Bank of America and Wells Fargo, noted they were still in limbo, even after applying the first day they possibly could. 

Some larger banks told them they were not able to process their applications yet, or that there were other delays. Later, many learned that larger businesses were favored and received the CARES Act money first. 

However, small business owners who have applied at their local, community-based institutions reported far less hassle and expedited results. 

"Many small business owners tell us they gave up on larger banks and reapplied for loans with a local lender," said Eric Groves, Alignable's Co-Founder and CEO. "In a recent discussion about Chase Bank, hundreds of small business owners shared their stories of frustration with major money center banks, as well as high praise for local and regional banks who came to their aid."  

Given that 47% of small businesses now have only one month of cash reserves before they might need to close, expediting those CARES Act loans is paramount. 

"The silver lining amid all of this CARES Act confusion is local banks have emerged as heroes," said Venkat Krishnamurthy, Alignable's Co-Founder and President. "Just two weeks ago, only 8% of small businesses had federal funds in their bank accounts, but now that number is up to 28%, because local banks stepped in to fill the void created by larger banks. Hopefully soon, that figure will be much higher and more small businesses will receive the financial support they need and deserve."  

Small business owners recommend if you're still trying to get your CARES Act loan, reapply at your local bank or with an online provider.

Survey Methodology

Alignable is the largest online small business referral network with 5 million+ small businesses across North America.

Surveys in this release include results from May 1-4, 2020 with 13,600 responses, and another poll conducted April 25-28, 2020 with 12,400 responses. In both cases, U.S.-based small business owners were polled. 

Alignable's Coronavirus Impact Polls are the most immediate and comprehensive polls available reflecting the sentiments of small business owners.

For more information, contact Chuck Casto at [email protected].

SOURCE Alignable