WASHINGTON, D.C. (Nov. 28, 2023) – NFIB Research Center Executive Director Holly Wade joined Scripps News to discuss the small business financing market and the impact of loan availability and rising interest rates on Main Street businesses nationwide.
Wade shares insightful data from NFIB’s latest banking survey and the October SBET survey and shares tactics to help small firms access financing. Wade notes that rising interest rates place a significant burden on the ability of small businesses to operate and grow, which impacts not only owners and employees but communities as a whole.
“Interest rates are more expensive these days for small businesses. Right now, we’re seeing about 5% saying it’s their single biggest problem in operating their business. Which is up from 0-1% last year, so still a low number of small business owners are saying it’s their dominant problem in operating their business. But certainly, credit and financing is more expensive. It is causing some challenges and absorbing those costs along with general inflation that they’re having to deal with and pass those increased costs on to their customers.”
“Having a relationship with your banker, the primary bank you use for business operations, is really helpful in having that relationship and talking through what financing options might be available to you, and whether you can get financing that you might not have thought of before.”
“It certainly slows down the small business sector if they’re not able to access adequate financing for business opportunities to grow and expand or to make those capital expenditures that are necessary for business operations. So, it does put a damper on the small business economy.”