Small businesses optimistic despite credit woes

July 22, 2009 | Print this Page.
Eight in 10 small business owners are reporting difficulties accessing business lines of credit and other capital solutions
Despite reports of increased difficulty with their business financing, many small business owners are hopeful about the country's economic recovery, said a recent survey by the National Small Business Administration (NSBA).

The survey, released this week, found that 80 percent of small business owners are having trouble accessing credit due to the credit crunch, compared to 67 percent in last year's survey.

Specifically, 68 percent of small business owners reported worsening terms on their credit cards and 38 percent have had their business lines of credit or credit card limits decreased.

The small business community is still feeling the impact of the recession, the survey found, as three major indicators - revenues, profits and employee size - all decreased in this year's survey.

"We're struggling," said Keith Ashmus, chair of the NSBA. "America's small businesses need and deserve better."

However, despite these difficulties, the number of small business owners who anticipate economic growth has increased from last year's survey. There was also an improvement in the employment level predicted for the next 12 months.

Small businesses having trouble with accessing credit, especially due to the credit crunch and the CIT Group liquidity struggles, are encouraged to consider alternative lenders, experts say.

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