95 Percent of Natural Products Businesses Applying for Paycheck Protection Program Loans Rejected
WASHINGTON – A new survey out today by the Natural Products Association (NPA) shows how hard the natural products industry has been hit by the COVID-19 crisis. According to the new survey, 95% of respondents who applied for a small business loan through the Paycheck Protection Program did not receive one. Furthermore, 88% of respondents said they would reapply for a loan once there are additional resources available. NPA will conduct an additional survey once a new round of small business loans are made available.
The average loan requested by respondents was $145,354 and ranged from $6,000 to $1.5 million. The total amount of loans requested by respondents was $8,285,186.
“Our members have stayed open as essential businesses but have clearly not been immune to the shock of this crisis,” said Daniel Fabricant, Ph.D., President and CEO of NPA. “As the country moves toward reopening in the coming weeks and months, we must ensure that health food stores and supplement manufacturers play a role in the rebuilding process and continue to provide Americans with products that support their health. We look forward to continuing to work with the Administration, governors, and lawmakers during this crisis and recovery.”
The Department of Homeland Security (DHS) recently declared health food stores and supplement manufacturers to be essential during the COVID-19 public health crisis. Health food stores provide a wide range of essential products, including, water, electrolytes, nutritional supplements, healthy food options, and other health-related products such as hand sanitizer.
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Natural Products Association
The Natural Products Association (NPA) is the trade association representing the entire natural products industry. We advocate for our members who supply, manufacture and sell natural ingredients or products for consumers. The Natural Products Association promotes good manufacturing practices as part of the growth and success of the industry. Founded in 1936, NPA represents over 700 members accounting for more than 10,000 locations of retailers, manufacturers, wholesalers and distributors of natural products, including foods, dietary supplements, and health/beauty aids. Visit www.npanational.org.