WASHINGTON, APRIL 21 – The International Franchise Association (IFA) today released the results of a survey of franchise owners on the Paycheck Protection Program and Economic Injury Disaster Loan program.
“These results show that small business owners need additional PPP funding as quickly as possible,” said Matt Haller, IFA Senior Vice President of Government Relations and Public Affairs.
“Franchise owners across the country are working to keep employees on payroll while giving back to their communities – and in many cases, they’re doing so while their businesses are completely closed.
“While the PPP is far from perfect for some of our members, replenishing the program, and ensuring that it remains available for those who need it, is the best way to make sure that as many employees as possible can remain on payroll and have a workplace to return to once this crisis passes,” he added.
IFA surveyed 409 franchise owners between April 14 - 20, 2020 to gauge the effectiveness of Paycheck Protection Program (PPP) Loans and Economic Injury Disaster Program Loans (EIDL). Their responses follow:
- 74% of franchise businesses have had to close their locations; just 26% remain open
- 98% of franchise owners have applied for government assistance
- 98% of franchise owners have applied for the Paycheck Protection Program
- 56% of franchise owners have applied for the Economic Injury Disaster Loans
- 63% of franchise owners have not had their PPP loans approved; 36% of franchise owners respondents have had their PPP Loans approved
- 89% of franchise owners have not received PPP funding; 11% have received funding
- 88% of franchise owners have not had their EIDL approved; 12% have had their loans approved
- 95% of franchise owners have not received their EIDL funding; 5% have received funding
The survey results show that the vast majority of businesses have not received PPP funding. These are small businesses that are trying to keep their employees on payroll but cannot do so because they do not have funding and do not have customers to bring in revenue.
Additionally, the survey results show that many of those who have had their loans approved are still waiting for their money. Without these funds, many franchise businesses will be unable to make payroll and pay other business expenses, like rent and utilities.