SVB Failure's Impact on Small Business Lending Thus Far: Not Much

You can ignore those voice of doom stories a lot of media outlets are carrying about bank lending to small business.  Yes, interest rates are up, so a small business that is borrowing now or renewing a loan now should expect to pay more.  But the money is there and at a reasonable rate.  

After surveying a variety of business owners, the latest Small Business Optimism Index from the National Federation of Independent Businesses finds:

• Just 2% reported that all their borrowing needs weren't satisfied. Twenty-nine percent reported all credit needs were met and 59% said they were not interested in a loan. A net 9% reported their last loan was harder to get than in previous attempts, up four points.
• Three percent reported that financing was their top business problem. A net 26% of owners reported paying a higher rate on their most recent loan, up two points. Rates are rising, but credit is still available.

In fact, financing was a relatively minor concern in the latest report. “Small business owners are cynical about future economic conditions,” said NFIB Chief Economist Bill Dunkelberg. “Hiring plans fell to their lowest level since May 2020, but strong consumer spending has kept Main Street alive and supported strong labor demand.”  That means there's strong support for purchases of beer, wine and spirits.

Key NFIB findings include:

• Forty-three percent of owners reported job openings that were hard to fill, down four points from February and remaining historically very high.
• The net percent of owners raising average selling prices decreased one point to a net 37% seasonally adjusted.
• The net percent of owners who expect real sales to be higher deteriorated six points from February to a net negative 15%.
• Just 2% reported that all their borrowing needs weren't satisfied. Twenty-nine percent reported all credit needs were met and 59% said they were not interested in a loan. A net 9% reported their last loan was harder to get than in previous attempts, up four points.
• Three percent reported that financing was their top business problem. A net 26% of owners reported paying a higher rate on their most recent loan, up two points. Rates are rising, but credit is still available.