1 Small Business Credit Survey, Spring 2014 Federal Reserve Bank of New York KEY FINDINGS SMALL BUSINESS CREDIT SURVEY, SPRING 2014 National evidence of improvements in business lending continues to emerge, particularly for high performing firms. However, challenges remain for small business owners seeking credit, especially those seeking lower dollar amounts. FFIEC Call Reports data show that despite growth in loans over $1 million, lending in lower dollar ranges under $1 million has stagnated and remains at 2005 levels. Responses to the Small Business Credit Survey provide insight into the dynamics behind these aggregate lending trends and shed light on noteworthy segments of the small business credit market, including small dollar borrowers. The spring 2014 survey highlights rising business costs, including financing costs, and high credit application costs, which may explain stagnant small dollar lending. The findings also indicate widespread interest in new financing types and new, nontraditional lenders. Here are the key findings in detail: Small firms report rising costs, including financing costs, as key growth challenge in 2013 o 2 in 3 firms experienced increasing costs of running their business and a quarter said it was their biggest growth challenge o 2 in 5 firms reported increasing financing costs o The number of firms reporting being priced out of traditional credit markets increased to 5% in 2013 from 3% in % of firms applied for credit in not a significant change from 2012 o Lines of credit and business loans continue to be the most sought after credit products with 70% and 52% of applicants seeking each product respectively o While 39% of applicants sought credit to cover day-to-day operations, 30% sought credit to expand their business or make capital investments a significant increase from a year ago Firms continue to report small credit needs and high application costs o Most applicants sought relative small loans: 90% sought under $1M and 51% under $100K o Applying for credit is time consuming on average firms spent 33 hours applying for credit, contacted 3 financial institutions, and submitted 3 credit applications Overall approval rates remained constant from a year ago; credit market continues to be favorable for profitable and experienced firms o 58% of applicants received at least some of the credit they applied for in 2013 not a significant change from 2012 o 37% of credit applicants were profitable, down from 44% in 2012; however, 76% had credit experience, up from 69% o Experienced and profitable firms typically sought larger loan amounts, had higher approval rates, and faced unchanged or decreasing financing costs
2 Small Business Credit Survey, Spring 2014 Federal Reserve Bank of New York Credit demand will remain strong in 2014 o 37% of firms plan to apply for credit in 2014 and 17% have not made a decision o Applicant pool likely to increase: fewer firms reported having sufficient financing and being debt averse in 2013 o More than half of unsuccessful applicants and non-applicants report interest in exploring new financing types and contacting new lenders About the Survey The Small Business Credit Survey (SBCS) is a semi-annual survey of establishments conducted by the Federal Reserve Bank of New York s Outreach Team, reporting information about business performance, financing needs and choices, and borrowing experiences. The SBCS captures the perspectives of businesses with fewer than 500 employees in New York, New Jersey, Connecticut, and Pennsylvania. In the spring 2014 survey, which reports on 2013 business activity, we heard from 835 small firms in New York, New Jersey, Connecticut, and Pennsylvania. Results are weighted to reflect the full population of small businesses in the four states of coverage along the dimensions of industry, age, employee size, and geography.
3 SMALL BUSINESS SNAPSHOT 2013 Business Conditions Employment INCREASING REVENUES 45% of firms PROFITABLE 37% of firms TOP GROWTH CHALLENGE 21% Attracting customers 20% Lack of credit availability 18% Uneven cash flow 17% Rising costs 24% added workers, of those: 72% hired to meet customer demand 76% did not add workers, of those: 50% held off due to high wages & benefit costs Financing Credit Demand Applicant Outcomes 59% had outstanding debt, of those: 81% held revolving debt 35% used large banks as primary credit source 42% reported higher financing costs than last year 40% applied for credit in 2013, of those: 51% sought under $100K 30% sought credit to expand or make investments 18% were too discouraged to apply 37% plan to apply in % were approved 39% were fully funded 42% were denied, of those: 43% had insufficient collateral 45% reported denial limited expansion The Fall 2014 SBCS was fielded in the 2nd quarter of 2014 and it asked respondents about their experiences in All percentages apply to all respondents except when otherwise indicated.
4 BUSINESS PERFORMANCE REVENUE CHANGE Comparing 2013 with 2012, did revenues increase, decrease, or stay the same for your business? PROFITABILITY In 2013, did your business operate at a profit, break even, or at a loss? 45% 41% 37% 27% 28% 22% Decreased Unchanged Increased Operated at a loss Broke even Operated at a profit N = 792 N = 823
5 BUSINESS CHALLENGES GROWTH CHALLENGES Did your business experience ANY OF the following challenges during 2013? Select all that apply. RANK ORDERING OF GROWTH CHALLENGES What was your business s BIGGEST challenge during 2013? Increasing costs of running business 66% Rank Challenge % of firms Uneven cash flow 58% 1 Difficulty attracting customers 21% Lack of credit availability 48% 2 Lack of credit availability 20% Difficulty attracting customers Difficulty hiring/ retaining staff Taxes 48% 23% 38% 3 Uneven cash flow 18% 4 Increasing costs of running business 17% Complying with regulations 21% 5 Difficulty hiring and/or retaining qualified staff 8% N = 814 See detailed findings for more information.
6 EMPLOYMENT 17% Decreased REASON FOR ADDING EMPLOYEES DIFFICULTY OF FILLING POSITIONS 24% Increased 59% Unchanged What were the reasons for adding employees? Select all that apply. How easy or difficult was it to fill the open position(s)? Growing customer demand 72% Very difficult 5% Current staff overworked 27% Difficult 21% Firm s financial position improved 22% Neither easy nor difficult 38% Need new skills 22% Easy 27% Other 17% Very easy 9% Wages and benefits have fallen 1% N = 223 REASON FOR NOT ADDING EMPLOYEES What were the reasons for not adding employees? Select all that apply. 50% 42% 31% 27% 19% High wages and benefit costs Firm s financial position doesn t support growth Economic climate is uncertain Other Staff has skills N = 569
7 FINANCING 59% of firms had outstanding debt, of those: 41% used debt to manage cash flow / operations 35% used large banks as primary credit source 50% pledged collateral to secure debt 81% held revolving debt OUTSTANDING DEBT BY REVENUE CHANGE IN FINANCING COSTS Firm revenues Less than $250K $250K - $1M Over $1M How did financing costs on your business debt change in 2013 compared with 2012? Outstanding debt No debt 48% 25% 24% Less than $250K 42% 58% 21% $250K $1M 5% 13% 27% Over $1M 1% 1% 24% Higher Stayed the same Lower 9% 42% 49% N = 785 See detailed findings for more information. N = 481
8 CREDIT DEMAND Did your business APPLY for credit in 2013? What was the PRIMARY reason your business DID NOT apply for credit in 2013? Spring 2013 SBCS Spring 2014 SBCS Change Applied for credit 36% 40% 4% Did not apply for credit Sufficient 19% 13% -6%*** Discouraged 19% 18% -1% Debt averse 18% 15% -3%* Priced out 3% 5% 2%** Other 5% 6% 2% Not sure 0% 3% 40% Applied 3% Not sure 57% Did not apply N(2013 SBCS) = 693; N(2014 SBCS) = 782 *** significant at 1%, ** significant at 5%, * significant at 10% The Spring 2014 SBCS was fielded in the 2nd quarter of 2014 and it asked respondents about their experiences in The Spring 2013 SBCS was fielded in the 2nd quarter of 2013 and it asked respondents about their experiences in Sufficient, discouraged, debt averse, and priced out refers to firms that reported not applying for credit because they had sufficient financing, did not think they would be approved, did not want to accrue debt, or thought the cost of credit was too high respectively.
9 APPLICANTS 40% of firms applied for credit, of those: 3 applications submitted on average 2.7 institutions contacted on average 33 hours spent applying for credit on average 30% sought credit to expand or make investments 40% Applied 3% Not sure 57% Did not apply AMOUNT OF FINANCING SOUGHT CREDIT PRODUCTS SOUGHT 51% Line of credit 70% Business loan 52% 30% Credit card 44% Debt consolidation 23% Trade credit 17% $0 $100,000 $100,001 $500,000 9% $500,001 $1,000,000 9% Over $1,000,000 1% Not sure Mortgage 16% SBA 14% Home equity line 7% Other 7% N = 293 See detailed findings for more information. N = 283
10 DISCOURAGED FIRMS REASONS FOR NOT APPLYING ACTIONS TAKEN TO IMPROVE CREDITWORTHINESS 57% Did not apply 40% Applied What were the likely reasons your business would not be approved? Select all that apply. Weak business performance 53% What, if anything, has your business done to improve its ability to obtain financing in 2013? Select all that apply. Paid down debt 51% 18% Discouraged 3% Not sure Insufficient collateral 44% Contacted new/ more financial institutions 39% Low credit score 37% Explored new financing types 21% Weak financial statements 17% Did not take action 19% Other factors 12% Consulted business advisor / improved financial management 13% Other 5% N = 116
11 DISCOURAGED FIRMS IMPACT OF NOT APPLYING FINANCING PLANS 57% Did not apply 40% Applied In 2013, what was the MOST important business impact of deciding not to apply for credit? How do you plan to finance your business in the next 12 months? Select all that apply. Business Earnings 69% 18% Discouraged 3% Not sure 35% Limited expansion 2% Prevented hiring 17% Did not complete existing orders 36% No impact 5% Personal Savings 44% Credit Cards 31% Existing Loan 15% Friends and Family 12% 4% Other Existing Line of Credit 9% Sought alternative financing Trade Credit 6% Other 6% N = 117
12 FUTURE DEMAND UPCOMING CREDIT PLANS FUTURE APPLICANTS Does your business plan to apply for credit in 2014? 14% New Applicants New Applicants Re-Applicants 2013 successful applicants 46% No 46% No 37% Yes 23% Re-Applicants Average firm age 8 years 16 years 14 years % profitable 43% 39% 51% 17% Not sure % with credit experience prior to N =761
13 CREDIT SUCCESS 60% All other firms CREDIT OUTCOMES SUCCESS BY CREDIT PRODUCT 2013 SBCS 2014 SBCS Difference Products Success rate Number of applicants Successful applicants 63% 58% -5% Received all 46% 39% -7%* Received most (>=50%) Received some (<50%) 11% 11% 0% 6% 8% 2% Trade credit Credit card Line of credit Business loan SBA Debt consolidation 71% 56% 48% 39% 38% 26% Unsuccessful applicants 37% 42% 5% Home equity line 21% 519 Mortgage 8% 3 36 Other 70% 19 8 N(2013 SBCS) = 283; N(2014 SBCS) = 293 * Significant at 10% The Spring 2014 SBCS was fielded in the 2nd quarter of 2014 and it asked respondents about their experiences in The Spring 2013 SBCS was fielded in the 2nd quarter of 2013 and it asked respondents about their experiences in N = 602 Successful Unsuccessful FRBNY Small Business Credit Survey February 2014
14 UNSUCCESSFUL APPLICANTS REASONS FOR DENIAL ACTIONS TAKEN TO IMPROVE CREDITWORTHINESS 40% Applied 57% Did not apply What were the likely reasons your business would not be approved? Select all that apply. Insufficient collateral 43% What, if anything, has your business done to improve its ability to obtain financing in 2013? Select all that apply. Explored new financing types 57% 17% Unsuccessful 3% Not sure Weak business performance 37% Contacted new/ more financial institutions 40% Low credit score 23% Did not take action 38% Other factors 22% Paid down debt 30% Weak financial statements 8% Other 20% Consulted bussines advisor / improved financial management 3% N = 173 N = 113
15 UNSUCCESSFUL APPLICANTS IMPACT OF DENIAL CURRENT SOURCE OF FINANCING 40% Applied 57% Did not apply In 2013, what was the MOST important business impact of deciding not to apply for credit? 45% Limited expansion 5% Sought alternative financing 4% Prevented hiring 9% No impact 30% Did not complete existing orders 8% Other Please select the PRIMARY type of financing used by your business in Personal savings Business earnings (cash income) Line of credit Credit cards Friends / family Other Trade credit 2% 1% 8% 15% 17% 28% 27% 17% Unsuccessful 3% Not sure Business loan 1% N = 174 N = 113
16 WEIGHTED SAMPLE DEMOGRAPHICS GEOGRAPHIC DISTRIBUTION AGE INDUSTRY COMPOSITION 30% % 26% New York State (excluding NYC) 20% New York City 26% PA 46% NY 20% NJ 8% CT EMPLOYEES 60% years Retail Education & health Professional services Leisure & hospitality Personal services Finance, insurance & real estate Construction Wholesale & transportation Other 20 Manufacturing Information employees Agriculture Weighted SBCS respondents U.S. Age data from Longitudinal Business Database, All other data from Census Business Patterns, 2012.
17 DETAILED RESULTS Roughly, what were your business s total revenues in 2013? 26% 23% 14% 10% 11% 10% 6% Less than $50,000 $50,001 $250,000 $250,001 $500,000 $500,001 $1,000,000 $1,000,001 $5,000,000 Greater than $5,000,000 Decline to answer N = 835
18 DETAILED RESULTS Did your business experience ANY OF the following challenges during 2013? Select all that apply. Increasing costs of running business 66% Uneven cash flow 58% Lack of credit availability 48% Taxes 48% Difficulty attracting customers 38% Difficulty hiring and/or retaining qualified staff Complying with government regulations including the Affordable Care Act (Obamacare) Lack of financial management guidance 12% 21% 23% Other 8% None 3% N = 814
19 DETAILED RESULTS What was your business BIGGEST challenge during 2013? Difficulty attracting customers 21% Lack of credit availability 20% Uneven cash flow 18% Increasing costs of running business 17% Difficulty hiring and/or retaining qualified staff 8% Taxes Complying with government regulations including the Affordable Care Act (Obamacare) None 3% 4% 5% Other 3% Lack of financial management guidance 1% N = 814
20 DETAILED RESULTS Did your business have any outstanding debt as of December 31, 2013? 38% No 59% Yes 3% Not sure N = 801 How much total debt did your business have as of December 31, 2013? 19% 12% 12% 12% 13% 12% 8% 6% 4% 1% $0 - $10,000 $10,001 $25,000 $25,001 $50,000 $50,001 $100,000 $100,001 $250, ,001 $500,000 $500,001 $1,000,000 $1,000,001 $2,000,000 Over $2,000,000 Not sure N = 506
21 DETAILED RESULTS For what PRIMARY purpose does your business use financing from non-business earning sources (e.g. business loan, line of credit, personal savings)? Manage cash flow / operating expenses 41% Business only uses business earnings 17% Fullfill existing business contracts 12% Real estate investment 8% Capital investment 8% Launch new product/service 7% Other 6% Hire employees 2% Refinance debt Pay down debt 0% 0% N = 492
22 DETAILED RESULTS Which of the following was your business s PRIMARY source of credit in 2013? Large bank 35% Community bank 26% Other 15% None 10% Trade credit 6% Credit union 5% CDFI 3% Online lender 0% N = 514
23 DETAILED RESULTS Was collateral required to secure ANY OF your business debt? Which types of collateral were required to secure your business debt? Select all that apply. Collateral can include inventory, equipment, property, personal real estate or other assets. Personal real estate 50% 47% No 50% Yes Business non-real estate assets 41% 3% Not sure Inventory and AR 41% N = 498 Business real estate 36% Other 14% N = 496
24 DETAILED RESULTS Did your business have any outstanding debt as of December 31, 2013? What percentage of your business s total debt was revolving as of December 31, 2013? 34% 38% No 59% Yes 26% 3% Not sure 19% 21% N = 801 None (0%) Some (<50%) Most (>=50%) All (100%) N = 496
25 DETAILED RESULTS What was your business s MAIN purpose for seeking credit in 2013? Day-to-day operations 39% Expand business 17% Purchase inventory 16% Other 15% Capital investments 13% N = 293
26 Small Business Credit Survey, Spring 2014 Federal Reserve Bank of New York SMALL BUSINESS CREDIT SURVEY METHODOLOGY Overview The Small Business Credit Survey (SBCS) is a semi-annual establishment survey conducted by the Federal Reserve Bank of New York, reporting information about business performance, financing needs and choices, and borrowing experiences. The SBCS captures the perspectives of businesses with fewer than 500 employees in New York, New Jersey, Connecticut, and Pennsylvania. The SBCS is distributed through civic and non-profit partners, primarily Chambers of Commerce, industry associations, and development corporations/authorities. In total, there were 835 responses to the survey fielded from April 3, 2014 to June 20, The number of responses to each individual question varied based on relevance. Results are weighted to reflect the full population of small businesses in the four states of coverage along the dimensions of industry, age, employee size, and geography. Sample Design The SBCS questionnaire is an online survey distributed by more than 20 partner organizations. Partners contact businesses on their membership lists, asking them to participate in the survey provided through a URL address. In some cases, partners make their distribution list available to the New York Fed. The SBCS is not a random sample, and therefore results should not be interpreted as a statistical representation of small businesses in the Second District or the nation. Rather, the results should be viewed as suggestive and analyzed with awareness of potential methodological biases. Weighting To reduce coverage bias, we use US Census Bureau data 1 to weight responses along the dimensions of industry, age, employee size, and geography. Survey weights are derived to allow estimates to be generated from the sample so as to represent the true small business population. For example, by reweighting our data, we correct for the overrepresentation of older firms. See Appendix A for sampling distributions of the spring 2014 SBCS after weighting. 1 Age data from US Census Business Dynamics Statistics, All other data from Census Business Patterns, 2012.
27 Small Business Credit Survey, Spring 2014 Federal Reserve Bank of New York Appendix A: Selected Characteristics of Firms in the Survey Sample, spring 2014 Sample Size Sample Distribution After Weighting Percentage of Total for Weighted Sample Firm Age 0-2 years , % 3-5 years , % 6-10 years , % years , % 20+ years , % All Firm Ages 835 1,129, % Firm Size 1-4 employees , % 5-9 employees , % employees , % employees , % employees 23 22, % All Firm Sizes 835 1,129, % Geography Connecticut 60 87,836 7,78% New Jersey , % New York (minus NYC) , % New York City , % Pennsylvania , % All Geographies 835 1,129, % Industry Agriculture 6 1, % Construction , % Manufacturing 84 42, % Retail , % Wholesale/Transportation 49 95, % Information/Media/Telecommunications 57 21, % Finance/Insurance/Real Estate , % Professional and Business Services , % Personal Services , % Education/Healthcare and Social Assistance , % Leisure and Hospitality , % Other 72 70, % All Industries 835 1,129, %
28 Small Business Credit Survey, Spring 2014 Federal Reserve Bank of New York Partner Organizations Albany Colonie Regional Chamber of Commerce Business Council of Fairfield County Connecticut Business and Industry Association Connecticut Small Business Development Center Empire State Development Corporation Federal Reserve Bank of Philadelphia Jefferson County Industrial Development Agency Manhattan Chamber of Commerce Mohawk Valley EDGE Minority Women Owned Business Enterprise Directories: New York City, New York State New York City Council New York City Department of Consumer Affairs, Office of Financial Empowerment New York City Department of Small Business Services New York State Business Council North Country Chamber of Commerce Small Business Administration, Buffalo Office South Bronx Overall Economic Development Corporation Staten Island Chamber of Commerce Tompkins Chamber of Commerce WHEDco
29 INTRODUCTION The Small Business Credit Survey is conducted by the Federal Reserve Bank of New York in partnership with business and civic groups in your area. The questions will ask about your business s recent performance and financial and credit experiences. This information will help to shape programs that benefit the business community. The questionnaire takes approximately 10 minutes to complete. Your answers are confidential and results are reported only in the aggregate. We recommend taking the survey on a desktop/laptop computer or a tablet. Thank you for your time. DEMOGRAPHICS First, we have some general questions about your business. 1) What is the name of your business? 2) Is your business a FOR-PROFIT organization? (Not-for-profit firms have a special designation from the IRS) Yes No Not Sure 3) What is your business s PRIMARY Zip Code? 4) In what year was your business established? (YYYY) 5) Please select the category that BEST describes your business's industry. Agriculture Construction Manufacturing Retail trade Wholesale trade Transportation and warehousing Information, media, and telecommunications Finance, insurance and real estate Professional and business services (e.g. Consulting, accounting) Personal services (e.g. Laundry services, nail/hair salon) Education Health care and social assistance Arts, entertainment, and recreation
30 Accommodations and food services Other, please specify: Next, we have a few questions about the approximate size of your business 6) How many people does your business employ, including all full-time and part-time employees, and owners? 7) Roughly, what were your business's total revenues in 2013? Less than $50,000 $50,001 - $250,000 $250,001 - $500,000 $500,001 - $1,000,000 $1,000,001 - $5,000,000 $5,000,001 - $10,000,000 $10,000,001 - $100,000,000 Greater than $100,000,000 Not Sure Decline to answer 8) Over the next three years, what are your revenue and employment plans for your business? Increase Stay the same Decrease Revenue Employment PERFORMANCE We now have a few questions about your business s performance and strategy during ) In 2013, did your business operate at a profit, break even, or at a loss? At a profit Break even At a loss 10) Comparing 2013 with 2012, did the following increase, decrease, or stay the same for your business? Increased Stayed the Same Decreased Revenue Net profits Number of employees
31 If number of employees increased, go to Q11, if number of employees decreased, go to Q13, otherwise go to Q14 11) What were the reasons for adding employees? Select all that apply. Need new skills Growing customer demand Current staff members are overworked Firm s financial position improved Wages and benefits have fallen Other factors, please specify 12) How easy or difficult was it to fill the open position(s)? Very Easy Easy Neither easy nor difficult Difficult Very difficult Go to Q14 13) What were the reasons for NOT adding employees? Select all that apply. Current staff has needed skills Economic climate isn t good/is uncertain Firm s financial position doesn t support growth Wages and benefits were too high Other factors, please specify 14) Did your business experience ANY OF the following challenges during 2013? Select all that apply. Complying with Government regulation including the Affordable Care Act (ObamaCare) Taxes Lack of credit availability Lack of financial management guidance Uneven cash flow Increased costs of running business Difficulty attracting customers Difficulty hiring and/or retaining qualified staff None Other, please specify
32 15) What was your business s MOST important challenge during 2013? Complying with Government regulation including the Affordable Care Act (ObamaCare) Taxes Lack of credit availability Lack of financial management guidance Uneven cash flow Increased costs of running business Difficulty attracting customers Difficulty hiring and/or retaining qualified staff None Other, please specify FINANCING Next, we have a few questions regarding your business s financing during ) What, if anything, has your business done to improve its ability to obtain financing in 2013? Select all that apply. Paid down debt / consolidated debt Consulted business advisor / improved financial management Contacted new/more financial institutions Explored new financing channels (e.g. Crowdfunding, peer loans) Did not take any action to improve my business s financing position Other, please specify 17) Please select the PRIMARY type of financing used by your business in Business earnings (cash income) Credit cards Business loan Line of credit Personal savings Trade credit Friends/Family Other, please specify (e.g. equity financing, home equity line)
33 18) Which of the following was your business's PRIMARY source of credit in 2013? Large Bank (e.g. Bank of America, JP Morgan Chase) Community Bank (e.g. Bank of New Jersey, New York Community Bank) Credit Union (e.g. Cornerstone Community Federal Credit Union) Community Development Financial Institution (e.g. Accion) Online lender (e.g. Lending Club, Prosper) Trade credit provider (e.g. Kabbage) Other, please specify 19) Why was <insert response from Q18> your business s primary source of credit? Select all that apply. I do my personal banking there Offered best terms Offered flexibility Fast credit decision process Offered short-term credit Allowed debt consolidation Only financial institution that would fund me Other, please specify 20) Did your business have any outstanding debt as of December 31, 2013? Yes No Not Sure If you answered Yes go to question 21, otherwise skip to ) How much total debt did your business have as of December 31, 2013? $1- $10,000 $10,001 - $25,000 $25,001 - $50,000 $50,001 - $100,000 $100,001 - $250,000 $250,001 - $500,000 $500,001 - $1,000,000 $1,000,001 - $2,000,000 Over $2,000,000 Not sure
34 22) What percentage of your business s total debt was revolving as of December 31, 2013? All (100%) Most (>=50%) Some (<50%) None (0%) 23) For what PRIMARY purpose does your business use financing from non-business earning sources (e.g. business loan, line of credit, personal savings)? Pay down debt Refinance Capital investment Hire employees Real estate purchase Fulfill existing business contracts Launch new product/service Manage cash flow / operating expenses Only use business earnings Other, please specify 24) How did financing costs on your business debt change in 2013 compared with 2012? Costs became lower Costs stayed the same Costs became higher 25) Was collateral required to secure ANY OF your business debt? Collateral can include inventory, equipment, property, personal real estate or other assets. Yes No Not sure If you answered Yes continue to question 26, otherwise go to question ) Which types of collateral were required to secure your business debt? Select all that apply. Inventory or accounts receivable Business non-real estate assets (e.g. equipment, vehicles, securities) Business real estate Personal real estate Other, please specify (e.g. personal assets)
35 APPLICATIONS Next, we have a few questions regarding your business s use of credit during ) Did your business APPLY for credit in 2013? Yes No Not sure If you answered Yes continue to question 28, if you answered NO continue to question 39, otherwise go to question 44. APPLICANT BRANCH 28) How many applications for credit did your business submit in 2013? 29) How many different financial institutions did your business submit a credit application to in 2013? 30) When applying for credit in 2013, approximately how many total hours did your business spend researching and completing credit applications? 31) What was your business s MAIN purpose for seeking credit in 2013? Expand business (e.g. New products, new markets, including exporting) Fund day-to-day operations Purchase inventory Make capital investments (e.g. Real estate, equipment, or vehicles) Other (e.g. repay debt, build reserve) 32) How much credit did your business APPLY for in 2013? $1-$10,000 $10,001 - $25,000 $25,001 - $50,000 $50,001 - $100,000 $100,001 - $250,000 $250,001 - $500,000 $500,001 - $1,000,000 $1,000,001 - $2,000,000 Over $2,000,000 Not sure
36 33) How much of the credit your business applied for was approved? All (100%) Most (>=50%) Some (<50%) None (0%) If answer to Q33 different from received All (100%) of the credit it applied for continue to question 34, otherwise go to question ) What was the MOST important business impact of not receiving the full amount of credit for which your business applied? Did not hire new employees Delayed/prevented ability to fulfill existing orders/contracts Delayed/prevented expansion of business (e.g. Purchase of new capital assets, Launch of new product or service) Sought alternative financing sources (e.g. Crowd funding, peer-to-peer lending, community networks) No significant impact Other, please specify If sought alternative financing sources continue to question 35, otherwise go to question ) Please specify the alternative financing sources (e.g. crowd funding, peer-to-peer lending, community networks) 36) What were the likely reasons your business did not receive the full amount of credit applied for in 2013? Select all that apply. Low credit score Insufficient collateral Weak/missing financial documents or tax statements Weak business performance (e.g. uneven cash flow, weak revenue) Other factors, please specify
KEY FINDINGS SMALL BUSINESS CREDIT SURVEY, Q4 2013 As part of its engagement with the business community, the New York Fed s Outreach Team surveys small firms twice a year about their financing and credit
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Idaho Collateral Support Program Participation Guide Table of Contents V3 05-10-13 Table of Contents Summary Section 1: Eligibility Requirements a) Participating Lenders b) Borrowers c) Loans Section 2:
QUARTERLY REPORT ON HOUSEHOLD DEBT AND CREDIT November 21 FEDERAL RESERVE BANK OF NEW YORK RESEARCH AND STATISTICS MICROECONOMIC AND REGIONAL STUDIES Household Debt and Credit Developments in 21Q3 1 Aggregate
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Small Business Data Assess Your Competition Define Your Customers Census Bureau Data Can Answer Many Questions What Is Census Bureau Data? Economic / business data Economic Census County Business Patterns
City of Tuscaloosa SMALL BUSINESS REVITALIZATION LOAN PROGRAM Community Development Block Grant Disaster Recovery APPLICATION Disaster Recovery Division Office of the Mayor 2201 University Boulevard, Tuscaloosa,
A Guide of Federal, State and Regional Loan Incentive and Grant s for Business and Economic TERM RATE FEES 7(a) Loan Guaranty The s primary loan program Business start ups or expansion; construction of
SBA Programs - Summary Agency: U.S. Small Business Administration (SBA) The Small Business Administration is a federal agency established to stimulate and foster economic development through small business.
1 WHAT IS BUSINESS CREDIT? Why Do I Need Credit? Establishing a good credit rating is an important financial priority for every business. Having good business credit means that owners of businesses can
Frequently Asked Questions about Physical Disaster Business Loans Q. How much can I borrow? A. The amount of money that the SBA will lend you will be based upon the actual cost of repairing or replacing
TMF: The Proven Model for Texas Business and Community Development Business loans for growth-oriented businesses with needs that may qualify for only partial financing through traditional lending institutions.
Financing the SBA Way Wayne Bell District Director Wichita District Office June 6, 2012 1 Agency History SBA What it is Federal Agency Created in 1953 Purpose To help potential and current small business
Courthouse PO Box 607 Carlton, MN 55718 Rural Business Enterprise Loan Program (RBE) Mailing Address: Carlton County Economic Development Office PO Box 607 Carlton, MN 55718 (218) 384-9597 or (218)384-9564
SMALL BANK Comptroller of the Currency Administrator of National Banks PUBLIC DISCLOSURE November 6, 2002 COMMUNITY REINVESTMENT ACT PERFORMANCE EVALUATION City National Bank Of New Jersey Charter 16142
August 2014 Results of the Second Annual SBLF Lending Survey OVERVIEW Small businesses are a vital part of the American economy and their success is a critical component of the economic recovery. Established
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Small Business Lending in Southern Dallas February 16, 2010 WWW.DALLAS-EDD.ORG 1 PURPOSE Describe Mayor s Southern Dallas Task Force Small Business Team Recommendation Explain why small business is important
Debt Freedom Primerica Canada Debt Freedom System To receive a SMART Loan referral fee, the new associate must introduce the client to the certified field trainer to make the referral. New associates must
Commercial Business and Real Estate Consultants Financial support at the Speed of Business SBA 504 LOAN PROGRAM For smarter Commercial Financing of: Real Estate Buildings Mix use properties Machinery Equipment
Opportunity Finance Network Presentation to Minority Business Development Agency: 3/4/15 Opportunity Finance Network (OFN) Leading national network of community development financial institutions (CDFIs)
Business Financing An Article by Michael L. Messer and Thomas L. Hofstetter SCHENCK, PRICE, SMITH & KING, LLP Even in these challenging economic times, businesses still have a need to grow and to obtain
Small Business Administration (SBA) Lending Programs and the American Recovery and Reinvestment Act of 2009 A Web and Telephone Seminar (Hosted by the Office of the Comptroller of the Currency (OCC)) September
WESTERN REGION CORPORATION Buffalo, New York 14203 (716) 945-5301 WESTERN REGION CORPROATION REGIONAL REVOLVING LOAN TRUST FUND (RRLTF) General Description Administered by: Western Region Corporation Buffalo,
ECONOMIC IMPACT OF SMALL BUSINESS DEVELOPMENT CENTER SHORT-TERM CONSULTING ACTIVITIES IN PENNSYLVANIA: 2009-2010 (REVISED) James J. Chrisman, Ph.D. 1121 Edinburgh Drive Starkville, MS 39759 tel. 662-615-4373
Financing Options for Your Small Business DuPage County Minority Entrepreneur Conference Priscilla Cordero ACCION Chicago March 19, 2009 What Do Lenders Look For? Six Cs of Credit Character Credit Capacity/
A fresh perspective on Asset Based Lending (ABL) While asset-based lending may often be considered last-resort funding, commercial borrowers of all types and sizes are using this flexible, cost-effective
COLLATERAL SUPPORT PROGRAM APPLICATION INSTRUCTIONS AND INFORMATION FOR COMPLETING THE APPLICATION Required for Idaho Collateral Support consideration Complete the two page Collateral Support Program Application
MICRO LOAN PROGRAM LOCAL COMMITTEE MANUAL APRIL, 2014 Regional business fund, inc. FOR MORE INFORMATION CONTACT: REGIONAL BUSINESS FUND, INC. 800 WISCONSIN STREET, MAIL BOX 9 EAU CLAIRE, WI 54703 Phone:
Note: This notice has been submitted to the Office of the Federal Register (OFR) for publication and is currently scheduled for placement on public display at the OFR on Friday, July 17, 2015 and publication
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Federal Reserve Bank of Dallas A Banker s Quick Reference Guide to CRA As amended effective September 1, 2005 This publication is a guide to the CRA regulation and examination procedures. It is intended
Hands on Banking Using Credit to Your Advantage Credit Reports, Credit Scores and Dealing with Debt The Hands on Banking program is a free public service provided by Wells Fargo. You may also access the
Conclusion CDFIs The community development financial institution industry in Appalachia is less mature than the national industry. Appalachian CDFIs largely target rural markets for their lending. Appalachian
How Important are Small Businesses to America s Economy Small businesses make up: 99.7 percent of U.S. employer firms, 63 percent of net new private sector jobs, 48.5 percent of private sector employment,
A Guide for Federal, State and Regional Loan Incentive and Grant s for Business and Economic PROGRAM TERM RATE FEES 7(a) Loan Guaranty The s primary loan program Business start ups or expansion; construction
SMALL BUSINESS SURVEY FEDERAL RESERVE BANK OF ATLANTA THIRD QUARTER 2012 DECEMBER 2012 The views expressed in the are not necessarily those of the Federal Reserve Bank of Atlanta or the Federal Reserve
PCA Index Survey Responses Fourth Quarter 2013 Craig Everett, Ph.D., MBA Director, Pepperdine Private Capital Markets Project 2012 Pepperdine University. All rights reserved. Pepperdine Private Capital
An Introduction to the Community Reinvestment Act John Meeks Atlanta Region FDIC Community Affairs What is the CRA? CRA stands for: The Community Reinvestment Act of 1977 revised in 1989, 1995, and 2005.
7605B/7601 ALTERNATIVE FINANCING SOURCES FOR YOUR SMALL BUSINESS Revised October 1999 University of Wisconsin System This publication has been developed by the Wisconsin SBDC in partnership with the U.
SBA 504 Debenture Program Long-term financing for fixed asset acquisitions and expansions Economic Development Objectives of SBA 504 Economic Development Objectives maximum 504 Loan Job Factor Job Creation/Job
9 Agricultural Credit Standards Tighten By Jason Henderson, Vice President and Omaha Branch Executive Agricultural borrowers are increasingly concerned about access to credit. Amid economic weakness and
Alternative Financing for Small Businesses - IBANYS June, 2015 Jim Conroy, Senior Vice President New York Business Development Corporation 1 About NYBDC NYBDC was formed in 1955 and is owned by banks Approximately
Personal Loans 101: Understanding Personal Loans When it comes to borrowing money, consumers have a variety of choices, ranging from credit cards to home equity loans. Personal loans are used for various
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Introduction The City of Buffalo would like your support and expertise in understanding the needs of small business owners within the region. Findings from the survey will be used to inform future support
Lending 101 The Basics Overview Loan categories Credit types Different loan types Interest rate Applying for a loan Credit & credit reports Simple loan tips Test Loan Categories Secured loan - a loan that
How Do I Qualify for a loan? Borrowing money is one of the most common sources of funding for a small business, but obtaining a loan isn't always easy. Before you approach your banker for a loan, it is
Graduate School of Colorado SBA lending Presentation SBA lending course summary The course will provide an overview and comparison of SBA 7a, SBA 504 and USDA Business & Industry (B&I) loan programs. SBA
GUIDE TO ACQUIRING STARTUP FINANCING 2015 American Institute of CPAs. All rights reserved. 15608-312 To make your business #CPAPOWERED, call today and let s get started. Contact information Address Phone
GUIDE TO ACQUIRING STARTUP FINANCING To make your business #CPAPOWERED, call today and let s get started. It s no secret that you will need capital money to launch your new business. In fact, many entrepreneurs
O Comptroller of the Currency Administrator of National Banks Small Bank Northeastern District 1114 Avenue of the Americas, Suite 300 New York, New York 10036 PUBLIC DISCLOSURE May 10, 1999 COMMUNITY REINVESTMENT
Overview of SBA Loan Programs U.S. Small Business Administration San Francisco District Office 455 Market Street, Suite 600 San Francisco, CA 94105 (415)744-6820 SBA Loan Programs The Big 3 SBA Microloan
The Accessing Capital Workshop Small Business Capital Access Strategies Toll-free: (800) 381-0073 Online: www.ar2credit.com 2009 Covenant Capital Corporation. All Rights Reserved. NET30 Advisors Who We
Please submit application to Mike Litton at email@example.com. SBA LOAN APPLICATION PlainsCapital Bank is a Preferred SBA Lender. The following information is required for initial processing, however,
Southwest Initiative Foundation LOAN PROGRAMS APPLICATION I. Basic Information: Business Name Address City Zip Contact Person Telephone # E-mail Address Website Social Security # -or- Fed ID # Does your