Report: Half of Small Businesses Denied Credit
Subscribe today for Free Enterprise Updates
- Latest business trends and best practices
- News about legislation and regulation impacting business
- Business how-to articles from industry experts
- Commentary and interviews with newsmakers in business and politics
"The Federal Reserve Bank of New York surveyed 426 small businesses in June and July for the report, which defined a small firm as privately owned, with 500 or fewer employees, and less than $25 million in revenue. Seventy percent of those surveyed had fewer than five employees on the payroll.
Of the businesses who received credit, 75 percent said they were getting only "some" of the credit they requested.
"Until now, we’ve only heard anecdotally about difficulties for regional small businesses in obtaining credit without any numbers to confirm this," Kausar Hamdani, senior vice president and community affairs officer at the Federal Reserve Bank of New York, said in a statement."