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
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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.