Non-employer firms—those without full-time or part-time employees on payroll—that sought Paycheck Protection Program funding most frequently did so from large or small banks over online lenders, credit unions, or nonbank finance companies, according to findings from the Federal Reserve’s Small Business Credit Survey’s non-employer report released earlier this week.
As shown in the Data Bank graphic below, 41% of non-employer firms that sought PPP funding did so at large banks, while 35% used a small bank. Among employer firms, 43% and 48% sought funding from large and small banks, respectively. A significantly higher percentage of non-employer firms sought funding from online lenders (19%) than employer firms (9%). (See Data Bank graphic below.)
However, the survey also found that non-employer firms were most successful in obtaining the full amount of PPP funding from small banks, with 63% receiving the full amount. Fifty-two percent received the full amount of funding from large banks, 46% received the full amount from credit unions and 45% received the full amount from online lenders