NEW YORK–With interest rates high and lending standards tighten, America’s small business owners say they are struggling to access the capital they need to operate and grow their businesses, according to Goldman Sachs 10,000 Small Businesses Voices survey of 1,556 small business owners.
The survey found small business owners also believe the Federal Reserve’s Basel III Endgame proposal would “make matters even worse.”
The Findings
Findings in the Goldman Sachs survey include:
- Of the small business owners who have applied for a new business loan over the past year (28%), 70% reported it was difficult to access capital. In contrast, 61% of loan applicants in the April 2023 Goldman Sachs 10,000 Small Businesses Voices survey said it was difficult to access capital in the prior three months. Seventy-six percent say difficulty accessing affordable capital has negatively impacted their business and 73% say rising interest rates are having a negative impact on their business.
- With the Federal Reserve is seeking public comment on its Basel III Endgame proposal, 84% of small businesses are concerned that the proposal will negatively impact their ability to access capital in an already difficult market. In July 2023, the Federal Reserve proposed a rule that will require large banks to further increase the amount of capital they hold.
- 68% of small business owners have outstanding business loans or lines of credit. Of these, 58% have a fixed interest rate, while 42% have a variable interest rate. 63% of those with outstanding loans or lines of credit say rising interest rates have impacted their ability to service their existing debt obligations.
- 68% of those with outstanding loans or lines of credit say they would not be able to maintain current operations or grow their business without their business loan or line of credit.
The survey was conducted from August 29-Sept. 7, 2023.
For additional info, go here.
Are You Being Gouged for Bank-Like Subscription Fees for Old News? Here’s a CU-Like Way to Fix That
The biggest, best and freshest news reporting in credit unions remains free! Each morning CUToday.info delivers its daily Fresh Today news update offering the latest headlines and breaking news right to your email, with the easy-to-read headlines format allowing you to click on the stories that interest you most in order to learn more. So stop paying those bank-fee-like subscription prices from other so-called “news”” publications!
If you haven’t yet signed up for the new email solution on which CUToday.info has partnered with ResponseGenius, you can do so here. Signing up requires less than one minute of your time—and it’s free!
Please note that after signing up you may need to go to your Spam/Junk folder and mark the morning headlines email as safe. CUToday.info does not provide its list of readers and emails to outside parties, and we will not be contacting you to sell you an extended warranty or sending you any links so you may cash in on an inheritance you didn’t know was coming.
And did we mention it’s free?