Press release
Paychex Study Finds Majority of Paycheck Protection Program Applicants Face Loan Status Uncertainty
62 percent of first-round PPP loan applicants awaiting payment or approval when round-two applications opened ROCHESTER, N.Y., May 5, 2020 /PRNewswire/ -- As
About this update from Paychex, Inc.
[{"type":"text","content":"62 percent of first-round PPP loan applicants awaiting payment or approval when round-two applications opened\n\n\nROCHESTER, N.Y., May 5, 2020 /PRNewswire/ -- As the second round of funding for the Paycheck Protection Program (PPP) became available on April 27, 62 percent of PPP loan applicants were still waiting for funding or approval, according to new research from Paychex, Inc., a leading provider of human resources, payroll, benefits, and insurance solutions for 670,000 small- and medium-sized businesses. \n\n \n \n \n \n \n \n\n \nThe Paychex study, which polled 300 randomly selected U.S. business owners with 2-500 employees online from April 24-27, 2020, showed that of the 44 percent of businesses that applied for a PPP loan: \n45 percent submitted paperwork and are waiting for approval 17 percent had been approved, but are awaiting payment 15 percent had received payment 7 percent reported their loan application was rejected 6 percent did not receive approval before round-one of funding depleted 5 percent said their loan application was delayed 5 percent did not know the status of their loan application The survey also revealed that larger businesses are more likely to have received payment from the first round of funding:\n29 percent of those with 50-500 employees had received payment 11 percent of those with 10-49 employees had received payment 8 percent of those with 2-9 employees had received payment \"In many cases, as the COVID-19 pandemic continues, the status of a PPP loan is make or break for business owners and their employees as they exercise every opportunity to keep their businesses afloat and maintain staff salaries and benefits,\" said Martin Mucci, Paychex president and CEO. \"Understanding the importance of these funds for small businesses and the urgency of the application process for both rounds of funding so far, we're proud to have provided more than 400,000 businesses and counting with the packaged data needed to efficiently apply for a PPP loan.\"\nBusiness owners are taking full advantage of the resources available to them to help ensure their businesses can survive this unprecedented crisis. According to the Paychex study, of those business owners who had applied for a PPP loan, 91 percent said the funds will help them stay in business. More specifically: \n72 percent will use the funds to pay e...