Small Business Lending Stats — Only 32% of Main Street Regularly Borrows Money says NFIB

April 21, 2015

By Bob Coleman
Editor, Small Business Lending Stats

From the March NFIB Small Business Economic Trends March 2015 Report

Credit Markets

Five percent of owners reported that all their credit needs were not met, up 2 points but historically low. Thirty-five percent reported all credit needs met, and 48 percent explicitly said they did not want a loan. For most of the recession, record numbers of firms have been on the “credit sidelines”, seeing no good reason to borrow. Only 3 percent reported that financing was their top business problem. Thirty-two percent of all owners reported borrowing on a regular basis, up 2 points. The average rate paid on short maturity loans rose 60 basis points to 5.7 percent. Loan demand remained historically weak. The net percent of owners expecting credit conditions to ease in the coming months was a negative 6 percent, a 2 point deterioration. Interest rates are low, but prospects for putting borrowed money profitably to work have not improved enough to induce owners to step up their borrowing and spending.

NFIB Small Business Optimism Index

The NFIB Small Business Optimism Index fell 2.8 points to 95.2 declining in sympathy with the rather weak stream of reports on the economy. Bad weather was certainly depressing, for both shoppers and the construction industry. All 10 Index components declined, contributing to the 31 point decline in net positive responses.

Access the complete report here.

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