Almost a Third of Small Businesses Borrow Once Every Quarter
May 15, 2024
Delaney Sexton
Contributing Editor
Almost a Third of Small Businesses Borrow Once Every Quarter
In April, small business optimism increased for the first time in 2024, but this is the 28th consecutive month that optimism is below the 50-year average. Regarding credit conditions, NFIB Chief Economist Bill Dunkelberg writes, “Although the interest rate paid on small business loans has doubled from 4% to over 9%, historically low percentages of owners report problems getting the credit they seek.”
These are the statistics about credit conditions from the NFIB report:
- 28% of small business owners said all their financing needs were met.
- Up slightly, 3% reported that all their borrowing needs were not met.
- 60% of small business owners are uninterested in a loan.
- 31% reported borrowing once every three months, a 3% increase from March.
- Compared to previous attempts, 8% of small business owners reported that their last loan was harder to get.
- Only 4% said that financing was a top business problem in April.
- 21% of small business owners reported paying a higher rate on their most recent loan, up 4% from March.
- Down half a point, the average interest rate paid on short-term loans is 9.3%.
- 9% of small business owners expect worsening credit conditions during the next three months.