Small businesses are important to the U.S. economy and the well-being of local communities. They employ half of the nation’s private sector workers and in recent decades have created two-thirds of net new jobs. Yet, unlike large firms, which rebounded relatively quickly from the Great Recession, the pace of recovery for small firms has been slower and more uneven.
An important part of measuring the small business recovery is tracking firms’ demand for and ability to access capital. The Joint Small Business Credit Survey, a collaboration among the Federal Reserve Banks of New York, Atlanta, Cleveland and Philadelphia, does that. Responses to this joint survey provide insight into the dynamics behind aggregate lending trends and shed light on noteworthy segments of the small business credit market, including small dollar borrowers.
Here are key findings from the survey:
Credit Application Rate
|Firm Size (annual revenues)||Percent of Firms|
(less than $250K)
|Percent of Applicants||Percent of All Firms|
|Operated at a profit||49%||60%|
Credit Application Outcomes
|Received all financing applied for||33%||25%||36%||60%||70%|
|Received most (>=50%)||9%||11%||4%||6%||10%|
|Received some (<50%)||12%||11%||10%||12%||0%|
*7% of mid-size applicants were unsure.
Updated February 17, 2015