6% of Small Business Owners Say Financing is their Top Business Concern

June 11, 2024

Delaney Sexton
Contributing Editor

6% of Small Business Owners Say Financing is their Top Business Concern

The NFIB Optimism Index rose 0.8 of a point in May, which is the highest reading so far this year. Small business owners’ uncertainty was much stronger this month. The Uncertainty Index increased by 9 points to 85. This is the Uncertainty Index’s highest reading since November 2020.

Here’s how the current credit conditions are for small business owners:

  • In May, 6% of owners reported financing as their top business problem, the highest reading since June 2010.
  • 31% of small business owners say that they borrow at least once every three months.
  • Up 1 point from April, 29% of small business owners reported that all their credit needs were met.
  • 3% of small business owners feel that their credit needs were not met.
  • When trying to obtain a loan, 6% of small business owners had a more difficult time.
  • On their most recent loan, 20% of small business owners paid a higher interest rate.
  • The average interest rate paid on short-term loans was 9%.
  • 58% of small business owners are not interested in obtaining a loan.
  • 7% of small business owners expect worsening credit conditions in the future.

Source:
NFIB Small Business Economic Trends May 2024