Despite the significance of small businesses to the U.S. economy and to local communities, information on small business financing conditions is limited, leaving important knowledge gaps for policymakers and service providers.
To fill those gaps, the Small Business Credit Survey, a collaboration among seven Federal Reserve Banks, including New York, Atlanta, Boston, Cleveland, Philadelphia, Richmond and St. Louis, offers insight about business owners’ financing decisions. The survey focuses particular attention on how credit demand, sources and outcomes vary within the small business sector.
This report focuses on the survey responses of 3,459 employer firms from 26 states. It sheds particular light on three sub-segments—startups, microbusinesses, and growing firms, or those with increasing revenues and employees and plans to increase or maintain their number of employees.
Here are key findings from the survey:
Employer Firm Performance Index1
|2014 Survey||2015 Survey|
Top Business Challenge by Type of Firm
|Costs of running business||19%||16%||23%||22%|
|Hiring and/or retaining qualified staff||17%||24%||15%||9%|
Application Outcomes by Size of Firm
|Fully funded||Financing shortfall|
Credit Sources Applied to by Revenue Size of Firm
Lender Satisfaction Score 1