Almost two-thirds of small businesses in the Federal Reserve Bank of New York’s region that sought credit received some form of financing, according to a poll conducted by the bank during the second quarter.
Thirteen percent were approved for the entire sum they requested, 36 percent received a portion of their desired financing and 14 received an undetermined amount, the survey of 544 small businesses in New York, New Jersey and Connecticut showed. Respondents pointed to access to capital as the biggest growth barrier, with 36 percent citing it as an impediment ahead of talent or government regulations.
About 59 percent of the firms didn’t apply for credit in the prior 12 months, with almost half of those opting not to because they didn’t think they would receive financing, the poll showed. Those “discouraged” borrowers were typically small and had weaker sales, according to the New York Fed.
“Results suggest that discouraged firms and those that could secure only partial financing are challenges in the small business credit environment,” the New York Fed said in a statement.
So-called microloans of less than $100,000 were in highest demand and were tougher to obtain compared with larger ones, the poll showed. The New York Fed collected responses in April and May, typically from firms with fewer than 10 employees and less than $5 million in annual revenue.