The Coronavirus pandemic has hit the small business community particularly hard. To help, the U.S. passed The Cares Act and with it, the Paycheck Protection Program, intended to keep small businesses afloat without having to layoff employees. But new data shows that many SMBs didn’t even bother applying for relief.
Big banks generally focused on their own larger commercial customers, letting SMBs founder. So, some small businesses found their way to being resilient using specialized fintech tools and software.
Fiserv and Intuit both supported financial services customers and small businesses. Financial data firm MX set up an SBA application portal for its banking partners. It took Sunrise Banks 5 days working with software firm Anvil to help 1600 SMBs access over $100 million in relief funds.
SMBs are still struggling. While many SMBs applied and were denied assistance, many didn’t even bother, according to new data from Intuit.
Less than half of the small business owners surveyed (45%) said they applied for some type of relief from the SBA Economic Injury Disaster Loan Program (EIDL), the Paycheck Protection Program (PPP), Employer Retention Credits (ERC), or the US Chamber of Commerce Foundation Save Small Business Fund.
Of those that did apply, 61% of SMBs successfully received their funding.