The 2020 pandemic has changed the way America runs and operates (perhaps forever). Due to the unprecedented economical impact caused by COVID-19, small businesses were especially hit hard. As we near the end of the year, some have remained in survival mode. Although, new studies show that small businesses that are partnered with a PEO (Professional Employer Organization), have risen above others. Why?
According to NAPEO (National Association for Professional Employer Organizations), “In the early months of the pandemic, a primary form of assistance that PEOs provided to their clients was in facilitating applications for Paycheck Protection Program loans from the federal Small Business Administration (SBA). The PPP program, created by the Coronavirus Aid, Relief, and Economic Security (CARES) Act of March 2020, was designed to provide forgivable loans to help businesses continue paying their employees, as well as other costs such as rent and utilities.” Adding to that, PEO clients were:
- 119% more likely to have received PPP loans
- 72% more likely to have received PPP loans in Round One
- 91% less likely to still be temporarily closed
- 60% less likely to have been permanently closed
PEOs focused on guiding their clients through the PPP process and providing them with the required documentation to get the loan approval in the earliest round. Beyond that, PEOs provided their clients with return-to-work procedures, updates on HR related issues and policies, helped furloughed employees remain on benefits, and so much more.
With a partner to lean on during an unpredictable time, PEOs and their clients worked together to survive the pandemic. Dan McHenry of McHenry Consulting stated, “PEOs mobilized on an unprecedented basis to guide their clients through the PPP loan application process, providing them the required documentation to secure PPP loan proceeds and to navigate PPP loan forgiveness.”
For more information regarding the mentioned statistics, visit www.napeo.org