The CARES Act
The CARES Act, signed into law on March 18, 2020, provides unprecedented financial support for businesses and allows small and medium-sized businesses to receive federal loans – in some cases forgivable – to cover payroll and other expenses. It also expands unemployment benefits for workers impacted by the outbreak, while extending unemployment eligibility to many who are otherwise not regularly entitled to receive such benefits.
95% of small business leaders are aware of the $2 trillion stimulus bill for COVID-19 relief; but amid confusion and difficulty in accessing loans, confidence in government support is beginning to slip.
6 in 10 small business leaders (59%) feel that the loans from the federal government stimulus package are difficult to access.
55% are either not at all or only slightly confident that the loans from the CARES act will help their businesses survive this difficult time.
88% of small business leaders are aware of a new wave of stimulus funding in addition to the CARES act.
Less than half (46% vs 58% a few days earlier) feel that the government is doing enough to support businesses like theirs.
About the same number of business leaders are planning to rely on their own personal funds (37%) to weather the pandemic as those that think they can rely on federal loans for funding (36%).
In less than one week, small business leaders’ confidence started to drop significantly.
Did you know that Paycheck Protection Loans…?
Paycheck Protection Program
The most significant provision of the CARES Act for small employers establishes new “paycheck protection” loans administered by the Small Business Administration (SBA) to help employers continue to cover payroll costs and other expenses during the COVID-19 crisis. The covered period for loans is February 15, 2020 through June 30, 2020.
Awareness of the Paycheck Protection Program is high, but there is significant lack of awareness and confusion about the details, from which businesses qualify, to how the money can be spent, and the resulting tax implications.
83% of small business leaders are aware of the Paycheck Protection Program.
About half of small business leaders say aspects of the Paycheck Protection Program are confusing (including qualifications, the application process, the parameters for spending the money, and the tax implications).
Tax implications are the most confusing aspect for taking the money (55% see it as confusing).
Methodology
TriNet is partnering with The Harris Poll to conduct an ongoing series of surveys with business leaders in companies of 5 to 249 employees. Business leaders are qualified as either owners/partners or C-level executives. Quotas are set by company size and industry for each wave.
Actual distribution for the latest wave of the research (April 8-10, 2020) is as follows:
66 business leaders with 5-19 employees
98 business leaders with 20-99 employees
31 business leaders with 100-249 employees
55 business leaders in Main Street industries (such as automotive, construction, hospitality, manufacturing, real estate, retail, skilled trade, etc.)
140 business leaders in Technology, Financial Services, Professional Services, Life Science, or Non-Profit industries
About The Harris Poll
The Harris Poll is one of the longest-running surveys in the U.S., tracking public opinion, motivations and social sentiment since 1963. It is now part of Harris Insights & Analytics, a global consulting and market research firm that strives to reveal the authentic values of modern society to inspire leaders to create a better tomorrow. We work with clients in three primary areas; building twenty-first-century corporate reputation, crafting brand strategy and performance tracking, and earning organic media through public relations research. Our mission is to provide insights and advisory to help leaders make the best decisions possible.
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