- Small businesses report greater satisfaction with banks this year in J.D. Power survey
- Administration of Paycheck Protection Program and dedicated account managers help drive positive view of banks
- Larger enterprises show greater satisfaction, while smaller ones are more uncertain about their economic outlook
Small business owners reported greater satisfaction with their banks this year, with the administration of the Paycheck Protection Program contributing strongly to more positive perceptions.
The J.D. Power 2020 U.S. Small Business Banking Satisfaction Study polled more than 7,500 small business owners or the financial decision makers at these companies. Overall satisfaction with banking services scored 822 on a 1,000-point scale, up two points from 2019.
Banks administered $669 billion in PPP funds, and 36 percent of respondents said they applied for a PPP loan through their bank. They reported higher satisfaction with their bank if the application was approved than if it was declined or pending approval. Banks were also more likely to earn high marks if they had dedicated account managers who could work with businesses on a PPP loan or other issues related to the pandemic.
Larger small businesses, with annual sales volume of $2.5 million to $20 million, showed a nine-point increase in satisfaction while businesses with smaller revenues had an increase of five points. Smaller businesses were also more likely to have a negative economic outlook, with 19 percent saying they remained closed when the poll was taken in July and August. J.D. Power says this result shows that banks may need to need to “refine their small business formulas to address this highly diverse market.”
