The 2015 Small Business Credit Survey: Report on Employer Firms released today presents a largely optimistic picture for small firms in the United States. The net share of firms reporting profitability, revenue growth and employment growth all increased from the 2014 survey. Moreover, half of applicants reported receiving all of the financing they applied for in 2015.
The Employer Firm Report presents findings on the business conditions, financing needs and access to capital based on the responses of nearly 3500 small businesses from a 26 state coverage area. Results of the survey, which is a joint effort of the Federal Reserve Banks of St. Louis, Atlanta, Boston, Cleveland, New York, Philadelphia and Richmond, provide insight into the dynamics behind aggregate lending trends and shed light on noteworthy segments of the small-business credit market, including startups and growing firms.
Key findings from the survey include:
Half of Applicants Received All the Credit Sought
Newer and Smaller Firms Were More Likely to Report Credit Shortfalls
Cash Flow was the Top Business Challenge for Small Firms
Small Banks are the Lender of Choice
Online Lenders are a Common Source of Financing – But Have Lowest Borrower Satisfaction Levels