Less Small Businesses are Having Their Credit Needs Met
July 9, 2024
Delaney Sexton
Contributing Editor
Less Small Businesses are Having Their Credit Needs Met
Small business optimism is at its highest this year, but credit conditions in June were less favorable for small businesses according to findings from the NFIB’s Small Business Economic Trends report. Although current credit conditions were rockier, small business owners were less likely to view financing as a top business problem and showed less interest in obtaining loans.
Here are the findings on small business credit markets:
- After declining by 5% in June, less than a quarter of all small business owners said that all their credit needs were met.
- 4% of small business owners said that their borrowing needs were not satisfied, which is a slight increase from the month before and the highest reading since August 2022.
- In June, 61% of small business owners were not interested in a loan, up 3% from May.
- 28% of owners reported borrowing on a regular basis.
- Only 4% of small businesses reported that financing was their top business problem.
- After a minor increase, 7% of small business owners said their last loan was more difficult to obtain than previous attempts.
- 15% of small business owners said they paid a higher rate on their most recent loan, down by 5% from May and the lowest reading since May 2022.
- Small business owners are paying an average rate of 9.5% on short maturity loans, up half a point from May.