NAFCU: 80% of PPP Loans Went to Small Firms With Fewer Than 10 Employees
NAFCU's survey shows more than 40% of CUs believe PPP loans have prompted a greater interest in other SBA lending programs.
Members of NAFCU reported the overwhelming number of Paycheck Protection Program loans they processed went to small businesses that employed fewer than 10 workers.
A survey of NAFCU’s credit union members showed that 46% of the PPP loans they secured during the first and second rounds of funding went to small firms that employed fewer than 10 workers and 32% of the PPP loans went to the self-employed or sole proprietors. Only 2% of small businesses that employed 51 to 100 workers got PPP loans, according to the trade organization.
Survey respondents submitted 37 loan applications on average.
More than 40% of the trade organization’s credit union members said the PPP loan initiative has prompted a greater interest in other SBA lending opportunities such as the 7a or CDC/504 loan programs.
NAFCU did not reveal the number of credit union members who responded to the survey, though a spokesperson said it was a representative sample of the total membership.