Survey reveals smaller entities were less likely to receive payroll protection assistance
(Abingdon, VA) May 8, 2020 – The COVID-19 Advisory Council is working hard to assess Tennessee and Southwest Virginia’s greatest needs during this global pandemic. In order to determine these needs, United Way of Southwest Virginia surveyed local small businesses and nonprofits to see who in our region has been able to utilize the Payroll Protection Program (PPP) authorized by the CARES Act.
The survey was open from April 17, 2020 until April 24, 2020, and received responses from a total of 156 organizations. The respondents consisted of 71 nonprofit organizations, 14 government entities, and 65 for profits. Of the 156 responding agencies, a total of 100 applied to the Payroll Protection Program. Of those 100 applicants, 45 were nonprofits, 45 for profits, as well as 10 other entities.
The remaining 56 responding organizations that opted to not apply to the Payroll Protection program refrained from doing so because of various reasons, however, the primary reason chosen was that the application process was confusing.
Based on the survey results, of the for profits that received funding, a total of 82% of those organizations have $1,000,000 + annual operating budgets. Only 47% of the organizations with annual operating budgets under $100,000 received funding.
The survey results also reveal that 100% of nonprofits with operating budgets of $1,000,000 + were approved for the Payroll Protection Program and received funding. Only 25% of nonprofits with operating budgets under $100,000 received funding.
Overall, 76% of the applications were approved. The primary reason respondents stated for not getting funding was that funds were not available or had already been used up. Several respondents wrote in to say that they did not need to apply because they are state agencies or were ineligible to apply, or had enough reserve to not need to apply.
The data show that nonprofits had a slightly higher approval rate than for profits. In this survey, smaller organizations (fewer employees and smaller operating budgets) applied at a higher rate than the larger organizations, but organizations with more employees and higher operating budgets were more likely to receive the PPP funds.