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2016 Small Business Credit Survey: State-Level Results in the Fourth District

Read more about the 2016 Small Business Credit Survey here.

Comparing the characteristics of respondents from Fourth District states* to the results for all 10,303 survey respondents across the US, we find that small businesses in our region:

  • Tended to be larger, as measured by revenue size (over $1M)
  • Had better credit scores
  • Were more likely to be owned by individuals over age 55
  • Were less likely to use the owners’ personal funds (and more likely to use external financing) as their primary source of business funding
  • Were less likely to report challenges making debt payments or obtaining credit

Relative to the entire sample of small businesses, Ohio firms:

  • Tended to be larger, as measured by revenue size (over $1M)
  • Had better credit scores
  • Were less likely to report financial challenges, and less likely to report difficulties making debt payments, obtaining credit, or covering operating expenses

While Pennsylvania firms:

  • Were less likely to use contract workers
  • Were less likely to use the owners’ personal funds (and more likely to use external financing) as their primary source of business funding
  • Were less likely to report revenue growth in the prior year and expected revenue growth in the coming year

Comparing the financing experiences of respondents from Fourth District states* to the experiences of all 10,303 survey respondents, we find that small businesses in our region:

  • Were less likely to report they were deterred from borrowing because they didn’t think they would be approved; they were more likely to be debt averse
  • Were less likely to have sought financing to cover operating expenses
  • Were less likely to cite their chance of being funded as a driving factor in choosing a lender; they also were less likely to say product flexibility or the speed of a decision on their application were factors that influenced their choice of lender
  • Were more likely to have applied for a loan or line of credit and less likely to have sought an equity investment or trade credit
  • Were less likely to have applied for financing at large banks, credit unions, and online lenders
  • Reported higher approval rates at large banks

Relative to the entire sample of small businesses, Ohio firms:

  • Were more likely to report their outstanding debt exceeded $1M
  • Were less likely to report they were deterred from borrowing by the cost of credit or because they didn’t think they would be approved
  • Were less likely to have sought small amounts of financing (less than $25K)
  • Were less likely to have sought new credit cards, trade credit, mortgages, or personal loans for their business
  • Were more likely to cite cost as a factor in choosing a lender
  • Were less likely to have applied for financing at an online lender or CDFI
  • Were more likely to have received financing

While Pennsylvania firms:

  • Were more likely to be debt averse
  • Were more likely to cite cost as a factor in choosing a lender
  • Were less likely to have applied for financing at an online lender or CDFI

2016 Small Business Credit Survey, Federal Reserve Banks: Data from Fourth District Respondents

*Fourth District states include Ohio, Pennsylvania, Kentucky, and West Virginia. State-level results are not available for Kentucky and West Virginia because of their small sample size.

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