Association for Corporate Growth® survey shows devastating impact if tens of thousands of lower middle market businesses remain excluded from PPP
Survey results published by the Association for Corporate Growth (ACG), a worldwide network of 90,000 middle-market professionals, show a devastating impact if Congress votes to again exclude lower middle market companies, majority-owned by venture capital, private equity, or other private capital providers, from the 7(a) loan program created under the Coronavirus Aid, Relief, and Economic Security (CARES) Act.
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In less than 48 hours (April 4-6), ACG surveyed more than 1,131 professionals involved in U.S. small and medium-sized businesses, to determine which companies were excluded from the Paycheck Protection Program because the U.S. Small Business Administration’s adherence to longstanding affiliation rules. The survey shows the devastating effects of this decision:
- 62% of respondents are currently excluded from the Paycheck Protection Program (PPP)
- 77% reported the PPP exclusion will impact the survival of their business
- 92% stated the PPP exclusion will result in employees being laid off
- More than 85% anticipate layoffs in the next month – of which 61% expect that to occur in the next two weeks
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The affected companies and respective layoffs are nationwide, with California, Texas, Florida and New York topping the ACG estimates that of the 45 million people employed in the middle market, 5 million are at risk due to the current exclusion from the PPP.
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