The Association for Corporate Growth ® surveyed its network April 4 through April 6 about eligibility for the Paycheck Protection Program (PPP) and received 1,131 responses via survey monkey. While 38% reported eligibility, 62% of respondents said that either their own organization or their client’s company is excluded from participating in the PPP, a $359 billion loan program established under the Coronavirus Aid, Relief, and Economic Security (CARES) Act.
Asked about how the exclusion will impact the business:
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
ACG estimates that of the 45 million Americans employed by middle-market companies, 5 million jobs are at risk. While the PPP was designed as an incentive for small businesses to keep workers on their payrolls, the program excludes a number of small and midsize companies that are backed by private equity firms. Because of the "affiliation rules," even companies that meet the size threshold may not qualify if the number of employees across the portfolio is greater than 500.
A great resource from the National Center for the Middle Market can be found here.