“Optimism has been at recession levels for a year. But unexpectedly strong consumer spending has kept Main Street alive and supported strong labor demand,” reads the March NFIB Small Business Economic Trends report.
Here is what small business owners are saying:
Credit Market
- A 4% increase in March, 29% of small business owners reported that all their credit needs were met.
- Also up 4%, almost 10% of regular borrowers had a harder time obtaining their most recent loan compared to previous loans.
- 59% of owners were not interested in a loan in March.
- Of the owners surveyed, only 2% said that all their borrowing needs were not met.
- Over a quarter of small business owners reported paying a higher rate on their most recent loan, an increase from February.
- According to the small business owners’ responses, the average interest rate paid on a short-maturity loan was 7.8%.
- About a third of small businesses borrow money on a regular basis.
- 3% of respondents cited financing as their top business problem.
Small Business Spending
- 57% of small businesses have made capital outlays in the last six months.
- Of those who made expenditures, 40% spent money on new equipment.
- Following equipment, 23% acquired vehicles, and 15% improved or expanded their facilities.
- 20% of small businesses are planning to have capital outlays in the upcoming months.
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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.
