“The much-anticipated recession has yet to make a meaningful appearance, if at all,” says Bill Dunkelberg, the Chief Economist for the NFIB. “Since mid-2021, reported average loan rates have risen from 5% to 8% (low compared to the record 19% in 1980) and the Fed reports that banks are tightening up on their lending standards.”
This is the data about small business credit conditions:
• Almost a third of small businesses are borrowing at least once every three months.
• An average of 5% of regular borrowers said they had a harder time obtaining a loan compared to three months ago.
• 3% of borrowers reported that all their borrowing needs were not met, and 25% reported that all their borrowing needs were satisfied.
• In upcoming months, an average 6% of borrowers expect credit conditions to be more difficult, an improvement from the 8% reading in January.
• About a quarter of regular borrowers reporting higher interest rates in February compared to three months ago.
• In February, the average interest rate paid on short-term loans was 7.9%, the highest reading since March 2008.
• Only 2% of small business owners answered that financing and interest rates were the most important problem for their small business.
• In February, almost half of the small businesses (47%) were expecting business conditions to worsen in six months, an increase from January.
Source:
NFIB Small Business Economic Trends – February
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About the U.S. Small Business Administration
The U.S. Small Business Administration makes the American dream of business ownership a reality. As the only go-to resource and voice for small businesses backed by the strength of the Federal Government, the SBA empowers entrepreneurs and small business owners with the resources and support they need to start, grow or expand their businesses, or recover from a declared disaster. It delivers services through an extensive network of SBA field offices and partnerships with public and private organizations. To learn more, visit www.sba.gov.
