SBA Hot Topic Tuesday – More Small Businesses’ Credit Needs Are Satisfied

April 18, 2023

Delaney Sexton
Contributing Editor

SBA Hot Topic Tuesday – More Small Businesses’ Credit Needs Are Satisfied

“Optimism has been at recession levels for a year. But unexpectedly strong consumer spending has kept Main Street alive and supported strong labor demand,” reads the March NFIB Small Business Economic Trends report.

Here is what small business owners are saying:

Credit Market

  • A 4% increase in March, 29% of small business owners reported that all their credit needs were met.
  • Also up 4%, almost 10% of regular borrowers had a harder time obtaining their most recent loan compared to previous loans.
  • 59% of owners were not interested in a loan in March.
  • Of the owners surveyed, only 2% said that all their borrowing needs were not met.
  • Over a quarter of small business owners reported paying a higher rate on their most recent loan, an increase from February.
  • According to the small business owners’ responses, the average interest rate paid on a short maturity loan was 7.8%.
  • About a third of small businesses borrow money on a regular basis.
  • 3% of respondents cited financing as their top business problem.

Small Business Spending

  • 57% of small businesses have made capital outlays in the last six months.
  • Of those who made expenditures, 40% spent money on new equipment.
  • Following equipment, 23% acquired vehicles, and 15% improved or expanded their facilities.
  • 20% of small businesses are planning to have capital outlays in the upcoming months.