The Federal Reserve Bank of New York today released its latest Small Business Credit Survey, providing insight into the credit experiences and business climate of more than 800 small businesses in New York, New Jersey and Connecticut. Nearly half (49 percent) of firms polled cited access to capital as a barrier to growth, but only a third of firms actually report applying for credit in the last year. While the concern was mostly (66 percent) among those firms operating at a loss, 36 percent of profitable firms also reported difficulty getting the credit they needed to expand their businesses.
Overall, the success rate for firms applying and receiving credit held steady (63 percent) from 2012, although more firms this year received all of the credit they sought.
The survey also found:
- Small businesses reported a need for small amounts of capital ($100,000 or less), mostly for cash flow and operating expenses.
- 28 percent of businesses cited finding employees as a growth barrier.
- Reported application rates remained steady at 36 percent with applicants having established borrowing experience and reporting positive sales growth.
- 27 percent of firms plan to apply for credit in the next six months, another 24 percent of firms are uncertain.
More information including interactive graphics are available on the New York Fed’s website.