Report on
Employer Firms
FEDERAL
RESERVE
BANKS of
MARCH 2016
2015
SMALL
BUSINESS
CREDIT
SURVEY
NEW YORK
ATLANTA
BOSTON
CLEVELAND
PHILADELPHIA
RICHMOND
ST. LOUIS
2015 SMALL BUSINESS CREDIT SURVEY | REPORT ON EMPLOYER FIRMS
TABLE OF CONTENTS
i ACKNOWLEDGEMENTS
iii EXECUTIVE SUMMARY
1 DEMOGRAPHICS
3 PERFORMANCE
4 EMPLOYMENT
5 BUSINESS CHALLENGES
6 FINANCING AND DEBT
7 DEMAND FOR FINANCING
8 NON-APPLICANTS
9 FINANCING SEARCH
10 CREDIT APPLICATIONS
11 CREDIT SOURCES
12 CREDIT OUTCOMES
13 FINANCING APPROVAL
14 LENDER SATISFACTION
15 FINANCING SHORTFALLS
17 METHODOLOGY
18 APPENDIX
18 A. BUSINESS CONDITIONS
23 B. OUTSTANDING DEBT AND
STARTUP FUNDING
28 C. NON-APPLICANTS
33 D. DEMAND FOR FINANCING
38 E. APPLICATIONS
43 F. FINANCING SUCCESS AND
SOURCES OF CREDIT
49 G. FINANCING SHORTFALLS
54 H. DATA FOR SELECT STATES
70 I. PARTNER ORGANIZATIONS
i
2015 SMALL BUSINESS CREDIT SURVEY | REPORT ON EMPLOYER FIRMS
ACKNOWLEDGEMENTS
Our hope is that this report contributes to policymakers’ and service providers’ understanding of the business conditions, credit needs,
and borrowing experiences of small business owners. A survey and report of this scope are made possible only through an extensive
network of partners and collaborators, for which we are truly grateful. The Federal Reserve Banks of New York, Atlanta, Boston, Cleveland,
Philadelphia, Richmond, and St. Louis thank the community partners in our Districts that distribute and promote the survey and share
valuable insights with us about nancing and service needs in their communities.
1
We also wish to thank the National Opinion Research
Center (NORC) at the University of Chicago for assistance with the weighting methodology used to make the Small Business Credit Survey
(SBCS) statistically representative.
2
We also thank colleagues within the Federal Reserve System, especially the Community Affairs Ofcers, and representatives from the U.S.
Department of the Treasury, U.S. Small Business Administration, The Aspen Institute, and Urban Institute for their feedback and support.
We particularly wish to thank the following people:
Prabal Chakrabarti, Senior Vice President and Community Affairs
Ofcer, Federal Reserve Bank of Boston
Nathan Dietz, Senior Research Associate, Urban Institute
Gwendy Donaker Brown, Vice President, Research and Policy,
Opportunity Fund
Donna Fabiani, Executive Vice President, Knowledge Sharing,
Opportunity Finance Network
Joseph Firschein, Deputy Associate Director and Community
Affairs Ofcer, Federal Reserve Board of Governors
Todd Greene, Vice President and Community Affairs Ofcer,
Federal Reserve Bank of Atlanta
Tammy Halevy, Senior Vice President, New Initiatives,
Association for Enterprise Opportunity
Kausar Hamdani, Senior Vice President,
Federal Reserve Bank of New York
Gina Harman, CEO, Accion USA
Paul Kaboth, Vice President and Community Affairs Ofcer,
Federal Reserve Bank of Cleveland
David Kaufmann, Community Development Manager,
Federal Reserve Board of Governors
Marysol McGee, Senior Community Affairs Analyst,
Federal Reserve Board of Governors
Jessica Milano, Deputy Assistant Secretary,
U.S. Department of the Treasury
Joyce Klein, Director, FIELD, The Aspen Institute
Karen Leone de Nie, Assistant Vice President,
Federal Reserve Bank of Atlanta
Tameka Montgomery, Associate Administrator,
U.S. Small Business Administration
Paul Quintero, CEO, AccionEast
Theresa Singleton, Vice President and Community Affairs Ofcer,
Federal Reserve Bank of Philadelphia
Yvonne Sparks, Assistant Vice President and Community Affairs
Ofcer, Federal Reserve Bank of St. Louis
Jeffrey Stout, Director, State Small Business Credit Initiative,
U.S. Department of the Treasury
Laura Temel, Policy Advisor, U.S. Department of the Treasury
Sandra Tormoen, Assistant Vice President and Community Affairs
Ofcer, Federal Reserve Bank of Richmond
Charlene van Dijk, Senior Portfolio Manager, CDFI Fund,
U.S. Department of the Treasury
Eric Weaver, CEO, Opportunity Fund
Ann Marie Wiersch, Senior Policy Analyst,
Federal Reserve Bank of Cleveland
1
For a full list of community partners, please see the Appendix.
2
For complete information about the Survey Methodology, please see p. 17.
ii
2015 SMALL BUSINESS CREDIT SURVEY | REPORT ON EMPLOYER FIRMS
ACKNOWLEDGEMENTS (CONTINUED)
This report is the result of the collaborative effort, input, and analysis of the following individuals.
REPORT TEAM
Brett Barkley, Federal Reserve Bank of Cleveland
Claire Kramer Mills, Federal Reserve Bank of New York
Maria Carmelita Recto, Federal Reserve Bank of New York
Ellyn Terry, Federal Reserve Bank of Atlanta
Emily Wavering, Federal Reserve Bank of Richmond
OUTREACH TEAM
Kyan Bishop, Federal Reserve Bank of Atlanta
Bonnie Blankenship, Federal Reserve Bank of Cleveland
Jeanne Milliken Bonds, Federal Reserve Bank of Richmond
Nathaniel Borek, Federal Reserve Bank of Philadelphia
Brian Clarke, Federal Reserve Bank of Boston
Chelsea Cruz, Federal Reserve Bank of New York
Eileen Divringi, Federal Reserve Bank of Philadelphia
Shannon McKay, Federal Reserve Bank of Richmond
Drew Pack, Federal Reserve Bank of St. Louis
E. Kathleen Ranalli, Federal Reserve Bank of Cleveland
Javier Silva, Federal Reserve Bank of New York
Ann Marie Wiersch, Federal Reserve Bank of Cleveland
We thank all of the above for another successful collaboration. Our intention is to eld the next survey in Q3 2016 when we expect even broader
coverage. The views expressed here are those of the authors and do not necessarily represent the views of the Federal Reserve System.
Claire Kramer Mills, PhD
Assistant Vice President and Community Affairs Ofcer
Federal Reserve Bank of New York
iii
2015 SMALL BUSINESS CREDIT SURVEY | REPORT ON EMPLOYER FIRMS
EXECUTIVE SUMMARY
Despite the signicance of small businesses
to the U.S. economy and to local communi-
ties, information on small business nancing
conditions is limited, leaving important
knowledge gaps for policymakers and service
providers. Although several sources report
aggregate lending volumes and lender per-
ceptions,
1
timely data about business owners’
nancing decisions are rare. Furthermore, as
previous studies have shown, credit demand,
sources, and outcomes vary considerably
within the small business sector.
Since 2010, the Federal Reserve has helped
to address this gap through regional surveys
of business owners. Beginning in 2014, the
Federal Reserve Banks of New York, Atlanta,
Cleveland, and Philadelphia collaborated on
a joint Small Business Credit Survey (SBCS)
to cover much of the eastern region of the
U.S. The collaboration has now expanded
to include seven Reserve Banks: Atlanta,
Boston, Cleveland, New York, Philadelphia,
Richmond, and St. Louis. In 2015, the
SBCS yielded 5,420 responses from busi-
nesses in 26 states. Responses from
the sample’s 3,459 employer rms are
featured in this report.
2,3
The SBCS offers insight on business condi-
tions and the credit environment from the
perspective of small business owners. This
report sheds additional light on three sub-
segments of the small business population—
startups, microbusinesses, and growing
rms
4
—each of which affects employment
and growth in local and regional economies.
Overall, the 2015 survey nds that
for employer rms:
FINANCING SUCCESS
IMPROVED IN 2015
Both rm performance and nancing suc-
cess rates improved year over year. Still,
half of applicant rms reported nancing
shortfalls between Q3 2014 and Q3 2015,
meaning they were approved for less than
the amount requested. Microbusinesses
and startups had the largest unmet nanc-
ing needs with 63% and 58%, respectively,
reporting a nancing shortfall.
SMALL BANKS ARE THE
CHOICE LENDER
Traditional bank lending continues to be
the primary source of nancing for small
businesses. Credit applicants were most
successful and most satised with their
borrowing experience at small banks. Small
banks approved at least some of the amount
requested for 76% of applicants, while large
banks approved 58% of applicants. Further,
small banks earned a satisfaction score
(the net percent satised with their overall
experience) of 75 among approved rms
compared to a score of 51 for large banks.
ONLINE LENDERS ARE POPULAR—
BUT HAVE LOWEST BORROWER
SATISFACTION LEVELS
Overall, 20% of employer rms applied at
an online lender.
5
While the approval rate
was relatively high for applicants (71% were
approved for at least some credit), approved
rms were not very satised with their
experience. The satisfaction score was just
15—far below that of small and large banks.
Dissatised rms reported concerns with
high interest rates and unfavorable repay-
ment terms.
More detailed ndings on employer rms
from the 2015 survey include:
a. Cash flow is a common challenge for
small rms.
22% of employer rms say managing cash
flow is their top business challenge, above
business costs and far above government
regulations and taxes.
Talent is an issue for growing rms. 24%
say that nding/retaining qualied staff
is their top challenge.
b. The majority of employer respondents,
63%, hold debt. Most debt is in
small amounts and secured with
personal assets.
More than half hold $100K or less in debt.
63% of rms pledged personal assets or
guarantee to secure debt.
Use of personal assets as collateral is very
common, even among larger and more
mature rms. 58% of employer rms with
more than $10 million in revenues and
63% of rms that started 11 or more years
ago used personal assets or guarantees to
secure their nancing.
1
See Ofce of Advocacy. "Small Business Lending in the United States," 2013. By Victoria Williams, Washington, D.C.: U.S. Small Business Administration, 2014.;
"Federal Financial Institutions Examination Council (FFIEC) Consolidated Reports of Condition and Income" (Call Reports); and The Board of Governors of the
Federal Reserve System. "Senior Loan Ofcer Opinion Survey on Bank Lending Practices."
2
Employer rms are those reporting they have at least one employee, excluding the owner(s) and contract workers.
3
A subsequent report will focus on the self-employed respondents and is scheduled for release in Q2 2016.
4
Startups are dened as rms 0-2 years of age. Microbusinesses are those with less than $100K in annual revenue. Growing rms are those reporting increased
revenues and employment in the prior year, and that expect to maintain or increase the number of employees in the next 12 months.
5
The questionnaire describes online lenders as nonbank online lenders including alternative and marketplace lenders.
2015 SMALL BUSINESS CREDIT SURVEY: EMPLOYER FIRM REPORT
iv
2015 SMALL BUSINESS CREDIT SURVEY | REPORT ON EMPLOYER FIRMS
EXECUTIVE SUMMARY (CONTINUED)
c. 47% of rms applied for credit in the
past 12 months
6
The top two reasons for borrowing are to
expand the business or to meet operating
expenses (i.e., cash flow).
Demand is highest among young rms
(0–5 years of age), growing, and higher
revenue rms.
Among non-applicants, nearly half indi-
cated they have sufcient nancing.
Debt aversion is fairly common—25%
of non-applicants said they didn’t want
to take on debt, including 20% of non-
applicant growing rms.
16% of all non-applicants reported being
discouraged, meaning they did not apply
for nancing because they believed they
would be turned down.
d. 50% of applicant rms received all
of the credit they sought.
A larger share of applicants reported prof-
itability and revenue growth than in the
2014 survey, two indicators of improved
applicant quality.
In the 2015 survey, half of applicants
reported receiving all of the nancing they
applied for, while 18% of applicants were
not approved for any nancing.
e. Banks are the dominant advisory and
credit channel, but there is noteworthy
use of loan brokers and online lenders
by the smallest and weakest applicants.
The majority of small business applicants,
73%, turned to a banker or lender for ad-
vice. However, microbusiness applicants
also relied heavily on Small Business
Development Centers (SBDCs), friends
and family, and loan brokers. 22% of
microbusinesses sought advice from
loan brokers compared to just 7% of
applicant rms with more than $10
million in annual revenues.
The majority of applicant rms sought
traditional loans or lines of credit from
banks, but 30% of microbusiness
applicants and 22% of small rms
applicants ($100K–$1M in annual rev-
enues) applied to an online lender.
Firms unable to obtain traditional bank
nancing were more likely to apply for
credit cards and for nancing at online
lenders. Only 38% were able to secure
nancing elsewhere and most of those
were approved for only some of the
nancing requested.
f. 50% of applicants had a nancing
shortfall, securing less than the full
amount requested.
Growing rms reported insufcient credit
history and collateral as the main reasons
they were approved for less than the
amount requested.
32% of growing rms reported that they
had to delay expansion as a result of their
nancing shortfall. 21% said they used
personal funds to nance their business.
Startups approved for less than the
full amount of requested nancing
used personal funds to cover their
nancing shortfall or were unable
to meet their expenses.
g. Satisfaction levels are highest for
applicants at small banks and lowest
at online lenders.
Successful applicants at small banks were
the most satised with their experience.
Online lenders and large banks both had
much lower net satisfaction scores.
Unfavorable repayment terms and high
interest rates were common reasons
for dissatisfaction with online lenders.
Transparency issues were cited across
all lenders. 31% of rms dissatised
with their experience pointed to a lack
of transparency.
ABOUT THE SURVEY
The Small Business Credit Survey (SBCS) is a
survey of rms, collecting information about
business performance, nancing needs and
choices, and borrowing experiences of rms
with fewer than 500 employees. Responses
to the SBCS provide insight into the dynamics
behind aggregate lending trends and shed
light on noteworthy segments of small busi-
nesses. The results are weighted to reflect the
full population of small businesses in the 26
states of coverage. The SBCS is not a random
sample; therefore, results should be viewed as
suggestive and analyzed with awareness of
potential methodological biases.
6
Respondents were asked about application experiences during the Q3 2014 to Q3 2015 time frame.
1
2015 SMALL BUSINESS CREDIT SURVEY | REPORT ON EMPLOYER FIRMS
DEMOGRAPHICS
STATE DISTRIBUTION (% of employer rms) N=3459NUMBER OF EMPLOYEES (% of employer rms) N=3459
1–9 10–49 50+
74%
21%
5%
INDUSTRY DISTRIBUTION (% of employer rms) N=3459
Professional services
and real estate
Non-manufacturing goods
production and associated services
Business support and
consumer services
Retail
Healthcare and education
Leisure and hospitality
Finance and insurance
Manufacturing
19%
18%
15%
14%
13%
11%
6%
4%
11.8%
11.5%
11%
9.2%
7.2%
6.5%
6.1%
4.9%
4.9%
4.7%
4.2%
2.9%
1.9%
1.6%
1.5%
1.5%
1.4%
1.4%
1.3%
1%
1%
0.7%
0.7%
0.4%
0.4%
0.3%
NY
FL
MA
NC
GA
OH
PA
AR
TN
AL
CT
IL
IN
NJ
KS
MS
MO
SC
VA
KY
LA
ME
MD
CA
CO
TX
EMPLOYEES
2
2015 SMALL BUSINESS CREDIT SURVEY | REPORT ON EMPLOYER FIRMS
DEMOGRAPHICS (CONTINUED)
1
Source: Ewing Marion Kauffman Foundation. "The Importance of Young Firms for Economic Growth." By Jason Wiens and Chris Jackson. 2015.
2 In this report, microbusinesses are dened as rms with <$100K in annual revenues. In the 2014 report, the denition included rms with up to $250K in annual revenues.
3 Source: The Aspen Institute, FIELD (Microenterprise Fund for Innovation, Effectiveness, Learning and Dissemination). "Microenterprise Development as Job Creation."
By Elaine L. Edgecomb and Tamra Thetford. 2013.
4
Past 12 months. Approximately Q3 2014 through Q3 2015.
5
Next 12 months. Q3 2015 through Q3 2016.
6
Source: Ewing Marion Kauffman Foundation. "The Importance of Young Firms for Economic Growth." By Jason Wiens and Chris Jackson. 2015.
Spotlight on key business types: Throughout the report, we highlight data
on three groups of small businesses that affect employment and growth
in local and regional economies. Understanding their challenges, credit
needs, and credit experiences is important for their continued vitality.
AGE OF FIRM (% of employer rms) N=3459 REVENUE SIZE OF FIRM (% of employer rms) N=3297
YEARS
0–2 3–5 6–10 11+
<$100K $100K–$1M $1M–$10M >$10M
21%
49%
25%
5%
21%
14%
20%
45%
Startups
New and young rms are the
economy’s primary job creator.
1
Microbusinesses
Microbusinesses create jobs
for their owners and others—
often workers disadvantaged in
the broader labor market.
2,3
GROWING FIRMS (% of employer rms) N=3296
Dened as:
Increased revenues
4
Increased employees
4
Plan to increase or maintain
number of employees
5
29%
Growing
71%
Not
growing
Firm
Growth
Growing Firms
Growing small businesses
are important engines
of dynamism in local
economies—adding jobs
and spurring innovation.
6
3
2015 SMALL BUSINESS CREDIT SURVEY | REPORT ON EMPLOYER FIRMS
PERFORMANCE
1
For revenue and employment growth, the index is the share reporting positive growth minus the share reporting negative growth.
For protability, it’s the share protable minus the share not protable.
2
Approximately Q3 2014 through Q3 2015.
In 2015, small businesses reported positive nancial performance on a
number of indicators, including revenue growth, protability, and job growth.
EMPLOYER FIRM PERFORMANCE INDEX,
1
2014 Survey and 2015 Survey (% of employer rms)
Limited to states surveyed in both years
2014
(N=1379) 2015 (N=2078)
Profitability Revenue growth Employment growth
27%
15%
26%
21%
15%
14%
PROFITABILITY, End of 2014 N=3354
(% of employer rms)
REVENUE CHANGE, Past 12 Months
2
N=3375
(% of employer rms)
At a profit 55%
Break even 21%
At a loss 24%
Increased 54%
No change 22%
Decreased 24%
The Startup Struggle
52% of startups (0–2 years)
reported operating at a loss
compared with only 15% of
rms over 10 years old.
4
2015 SMALL BUSINESS CREDIT SURVEY | REPORT ON EMPLOYER FIRMS
EMPLOYMENT
74% of employer rms reported having less than 10 employees.
45% of employer rms plan to add jobs in the next 12 months.
Small businesses are using contractors.
34%
of employer rms use
contract workers.
3
median number of contractors
per employer rm.
1
Approximately Q3 2014 through Q3 2015.
2
Expected change, Q3 2015 through Q3 2016.
CHANGE IN EMPLOYMENT (% of employer rms)
51%
No change
14%
Decreased
34%
Increased
Past
12 Months
1
48%
No change
45%
Will
increase
7%
Will decrease
Next
12 Months
2
N=3386 N=3396
5
2015 SMALL BUSINESS CREDIT SURVEY | REPORT ON EMPLOYER FIRMS
BUSINESS CHALLENGES
TOP BUSINESS CHALLENGE BY TYPE OF FIRM, Past 12 Months
1
(% of employer rms)
In order of importance
Costs of running business
Growing
2
N=803
Hiring and/or retaining qualified staff
Government regulations
Taxes
Credit availability
Other
3
Startup (0–2 years)
N=280
Revenues/sales
Micro (<$100K)
N=316
Cash flow
19%
17%
10%
9%
9%
2%
13%
22%
23%
16%
9%
8%
6%
3%
12%
24%
23%
15%
10%
9%
4%
2%
13%
25%
22%
16%
9%
7%
4%
3%
13%
26%
All firms
N=2940
1
Approximately Q3 2014 through Q3 2015.
2
Growing rms are dened as those with increased revenues over the past 12 months, increased employees over the past 12 months,
and plans to increase or maintain number of employees over the next 12 months.
3
“Other” includes costs related to employee benets, business climate, and market competition.
Note: Because of rounding, percentages sum to >100%.
24% of growing employer rms reported that hiring and/or
retaining staff is their top challenge to doing business.
6
2015 SMALL BUSINESS CREDIT SURVEY | REPORT ON EMPLOYER FIRMS
FINANCING AND DEBT
AMOUNT OF DEBT, At Time of Survey (% of employer rms with debt) N=2154
$1–$10K $10K–$25K $25K–$50K $50K–$100K $100K–$250K >$250K
9%
13%
14%
18%
19%
27%
54% hold less than $100K
63% of employer rms have outstanding debt.
Securing debt with personal assets is common,
even among higher revenue rms.
COLLATERAL USED
1
TO SECURE DEBT BY REVENUE SIZE OF FIRM (% of employer rms with debt)
Personal assets or guarantee
Business assets
Unsecured
All firms
N=2250
Micro (<$100K)
N=187
$100K–$1M
N=906
$1M–$10M
N=843
>$10M
N=239
63%
51%
26%
46%
68%
75%
16%
30%
16%
9% 9%
55%
62%
74%
58%
1
Select answer choices shown. See appendix for more detail. Respondents could select multiple options.
7
2015 SMALL BUSINESS CREDIT SURVEY | REPORT ON EMPLOYER FIRMS
DEMAND FOR FINANCING
47% of employer rms applied for nancing.
DEMAND FOR FINANCING N=3454
(% of employer rms)
61% Expand business/
new opportunity
37% Operating expenses
15% Other
24% Renance
REASON(S) FOR APPLYING
2
N=1671
(% of applicants)
53%
Didn't
Apply
47%
Applied
Past
12 Months
1
1
Approximately Q3 2014 through Q3 2015.
2
Respondents could select multiple answers.
3
Growing rms are dened as those with increased revenues over the past 12 months, increased employees over the past 12 months,
and plans to increase or maintain number of employees over the next 12 months.
61% of applicants were borrowing to expand their
business or pursue a new opportunity.
DEMAND FOR FINANCING BY TYPE OF FIRM
Application rate
(% of employer rms)
Expand business/new opportunity
(% of applicants)
Operating expenses
(% of applicants)
All firms
N=3454
Micro (<$100K)
N=391
40%
53%
62%
Startup (0–2 years)
N=326
53%
45%
63%
Growing
3
N=949
55%
70%
31%
Application rate
47%
37%
61%
Reason(s) for applying
8
2015 SMALL BUSINESS CREDIT SURVEY | REPORT ON EMPLOYER FIRMS
NON-APPLICANTS
53% of employer rms did not apply for nancing.
PRIMARY REASON FOR NOT APPLYING N=1763
(% of non-applicants)
49% Sufcient nancing
25% Debt averse
16% Discouraged
5% Other
3% Search too difcult
3% Credit cost high
53%
Didn't
Apply
47%
Applied
25% of non-applicants did not apply because
they were averse to taking on debt.
Past
12 Months
1
1
Approximately Q3 2014 through Q3 2015.
2
Growing rms are dened as those with increased revenues over the past 12 months, increased employees over the past 12 months,
and plans to increase or maintain number of employees over the next 12 months.
3
Discouraged rms are those that did not apply for nancing because they believed they would be turned down.
DEMAND FOR FINANCING N=3454
(% of employer rms)
DISCOURAGED AND DEBT AVERSE BY TYPE OF FIRM (% of non-applicants)
Discouraged
3
Debt averse
Growing
2
N=401
All firms
N=1763
Startup (0–2 years)
N=152
Micro (<$100K)
N=238
16%
25%
35%
32%
25%
28%
17%
20%
Microbusinesses are less likely to seek nancing,
and more likely to be discouraged and debt averse.
9
2015 SMALL BUSINESS CREDIT SURVEY | REPORT ON EMPLOYER FIRMS
FINANCING SEARCH
1
Select answer choices shown. See appendix for more detail. Respondents could select multiple options.
2
44% (SBDCs) and 22% (loan brokers)
73% of applicants asked lenders for nancing advice.
TOP SOURCE(S)
1
OF FINANCING ADVICE (% of applicants) N=1762
Banker or lender
Accountant, consultant,
or business advisor
Small Business Develop-
ment Center (SBDC)
Friends, family,
or colleagues
Loan broker
None
Chamber of commerce
or industry association
73%
40%
29%
25%
15%
9%
8%
FINANCING AND CREDIT PRODUCTS
1
SOUGHT (% of applicants) N=1671
Loan/line of credit
Credit cards
Leasing
Trade credit
Equity investment
Factoring
Other
89%
30%
11%
9%
4%
4%
3%
Loans and lines of credit are the most sought-after nancing products.
Microbusinesses (<$100K)
are more likely to seek
advice from multiple
sources, including SBDCs
and loan brokers.
2
10
2015 SMALL BUSINESS CREDIT SURVEY | REPORT ON EMPLOYER FIRMS
CREDIT APPLICATIONS
1
Select answer choices shown. See appendix for more detail. Respondents could select multiple options.
2
Growing rms are dened as those with increased revenues over the past 12 months, increased employees over the past 12 months,
and plans to increase or maintain number of employees over the next 12 months.
APPLICATIONS
1
FOR LOANS AND LINES OF CREDIT BY TYPE OF FIRM (% of loan/line of credit applicants)
All firms
N=1497
Micro
(<$100K)
N=127
Startup
(0–2 years)
N=145
Growing
2
N=490
Line of credit
Business loan
SBA loan/line of credit
Commerical mortgage
Merchant cash advance
57%
60%
53%
47%
52%
49%
58%
63%
21%
27%
37%
36%
10%
11%
9%
6%
7%
6%
9%
10%
Microbusinesses and startups are more likely to
apply for SBA-backed loans or lines of credit and
merchant cash advances than larger revenue rms.
11
2015 SMALL BUSINESS CREDIT SURVEY | REPORT ON EMPLOYER FIRMS
CREDIT SOURCES
Employer rms primarily base their application decisions
on relationships with lenders and the price of credit.
TOP TWO FACTORS
1
INFLUENCING WHERE FIRMS APPLY
Micro (<$100K)
N=148
$100K–$1M
N=635
$1M–S10M
N=629
>$10M
N=195
1
2
1
Select answer choices shown. See appendix for more detail. Respondents could select multiple options.
2
"Online lenders" are dened as nonbank alternative and marketplace lenders, including Lending Club, OnDeck, CAN Capital, and PayPal Working Capital.
Banks are the dominant credit source overall but online lending is a
noteworthy source for employer rms with less than $1 million in revenues.
CREDIT SOURCES
1
APPLIED TO BY REVENUE SIZE OF FIRM (% of loan/line of credit applicants)
All firms
N=1487
$100K–$1M
N=564
Micro (<$100K)
N=126
$1M–$10M
N=564
>$10M
N=181
Small bank
Large bank
Online lender
2
Credit union
53%
58%
6%
1%
52%
42%
20%
9%
59%
45%
11%
4%
52%
39%
22%
9%
44%
41%
30%
14%
Price
Perceived chance of being funded
Existing relationship with lender
Microbusinesses are more likely to make application
decisions based on perceived chance of funding.
12
2015 SMALL BUSINESS CREDIT SURVEY | REPORT ON EMPLOYER FIRMS
79% of employer rms that applied for a loan or line
of credit were approved for at least SOME nancing.
CREDIT OUTCOMES
APPROVAL RATE BY LOAN OR LINE OF CREDIT PRODUCT (% applicants receiving at least some credit)
Auto or equipment loan
N=61
Mortgage
N=178
Line of credit
N=869
Cash advance
N=68
Business loan
N=702
SBA loan/line of credit
N=216
89%
73%
71%
71%
69%
59%
1
Select answer choices shown. See appendix for more detail. Respondents could select multiple options.
2
The observation count ranges from 48 to 869, depending on the source and type of nancing.
Applicants had greater success at small banks than large banks.
APPROVAL RATE BY SELECT
1
SOURCE AND TYPE OF LOAN/LINE OF CREDIT N=48–869
2
(% applicants receiving at least some credit)
All Firms Micro (<$100K) $100K–$1M $1M–$10M >$10M
Source
Large bank 58% 33% 49% 72% 88%
Small bank 76% 60% 69% 88% 96%
Type
Business loan 69% 54% 65% 81% 92%
Line of credit 71% 55% 65% 82% 91%
MIDDLE PERCENTILETOP PERCENTILE BOTTOM PERCENTILE
Microbusinesses and rms with $100K–$1M in revenue had
much greater diculty obtaining credit than larger rms.
13
2015 SMALL BUSINESS CREDIT SURVEY | REPORT ON EMPLOYER FIRMS
FINANCING APPROVAL
50% of applicants were approved for the full amount of nancing.
1
Firms that were unsure how much they were approved for are excluded from the chart. In 2014, the approval rate pertained
to applications submitted in the rst half of the year. In 2015, the time period was the previous twelve months.
TOTAL FINANCING APPROVED, 2015 Survey (% of applicants)
1
2015
N=1580
18%18%14%50%
All
Most (>=50%)
Some (<50%)
None
Survey responses show greater success in 2015 than in 2014.
2015
N=997
2014
N=574
20%19%17%45%
35%14%13%38%
All
Most (>=50%)
Some (<50%)
None
TOTAL FINANCING APPROVED, 2015 Survey versus 2014 Survey (% of applicants)
1
Limited to states surveyed in both years
APPROVAL RATE BY FINANCIAL PRODUCT, 2015 Survey (% of applicants approved for at least some nancing)
Leasing
N=209
Trade credit
N=159
Credit card
N=373
Loan or line of credit
N=1428
Equity
N=68
89%
84%
80%
79%
74%
14
2015 SMALL BUSINESS CREDIT SURVEY | REPORT ON EMPLOYER FIRMS
LENDER SATISFACTION
Applicants that were approved for nancing from
small banks reported the highest satisfaction.
LENDER SATISFACTION SCORE
1
(% of rms approved at source)
Small bank
N=619
Credit union
N=46
Large bank
N=424
Online lender
2
N=140
Other
3
N=117
75%
56%
51%
33%
15%
Dissatised rms reported issues with banks’ application
processes and online lenders’ interest rates.
1
Satisfaction score is the share satised with lender minus the share dissatised.
2
"Online lenders" are dened as alternative and marketplace lenders, including Lending Club, OnDeck, CAN Capital, and PayPal Working Capital.
3
"Other" includes government loan funds and community development nancial institutions.
4
Respondents could select multiple options.
5
Select answer choices shown due to low observation count.
SUCCESSFUL APPLICANTS' REASON(S) FOR DISSATISFACTION,
4
Select Lenders
5
(% of employer rms dissatised with lender)
Online lender
N=67
Small bank
N=119
Large bank
N=217
Lack of
transparency
Long wait for
credit decision
Difficult application
process
Unfavorable
repayment terms
High interest rate
33%
45%
32%
22%
22%
43%
51%
16%
18%
21%
51%
70%
52%
15%
15%
15
2015 SMALL BUSINESS CREDIT SURVEY | REPORT ON EMPLOYER FIRMS
FINANCING SHORTFALLS
50% of applicants had a nancing shortfall, meaning
they received less nancing than the amount sought.
APPLICATION OUTCOMES BY SIZE OF FIRM (% of applicants)
>$10M
N=191
$1M–$10M
N=601
$100K–$1M
N=595
Micro (<$100K)
N=137
27% 73%
37% 63%
55% 45%
63% 37%
All firms
N=1580
50%
50%
Financing shortfall
Fully funded
Microbusinesses had the largest unmet need.
16
2015 SMALL BUSINESS CREDIT SURVEY | REPORT ON EMPLOYER FIRMS
FINANCING SHORTFALLS (CONTINUED)
TOP TWO REASONS
1
FOR DENIAL AND TOP TWO
1
EFFECTS OF DENIAL
Unable to meet expenses
Delayed expansion
Used personal funds
Unable to meet expenses
Delayed expansion
Used personal funds
Unable to meet expenses
Delayed expansion
Reported impact on businessTop reasons for credit denial
Insufficient collateral
Insufficient credit history
Insufficient credit history
Insufficient credit history
Weak business performance
Insufficient collateral
Other
3
Insufficient collateral
All rms
(N=445)
Growing
2
(N=141)
Startup (0–2 years)
(N=62)
Micro (<$100K)
(N=48)
Insucient collateral is the top barrier to obtaining nancing.
1
2
1
2
1
2
1
2
1
Select answer choices shown. See appendix for more detail. Respondents could select multiple options.
2
Growing rms are dened as those with increased revenues over the past 12 months, increased employees over the past 12 months,
and plans to increase or maintain number of employees over the next 12 months.
3
"Other” includes owner’s personal credit worthiness and length of time in operation.
17
2015 SMALL BUSINESS CREDIT SURVEY | REPORT ON EMPLOYER FIRMS
METHODOLOGY
OVERVIEW
The Small Business Credit Survey
(SBCS) is a convenience survey con-
ducted by the Federal Reserve Banks
of New York, Atlanta, Boston, Cleveland,
Philadelphia, Richmond, and St. Louis.
The SBCS reports information about
the business performance, nancing
needs and choices, and borrowing
experiences of businesses with fewer
than 500 employees.
In total, 3,459 employer rms responded
to the survey, which was elded between
September 28, 2015 and November
27, 2015. 1,961 responses from non-
employers were also captured, but are
not featured in this report. A separate
non-employer report reporting on is-
sues specic to non-employers will be
released later this year. The results are
weighted to reflect the full population
of small businesses in the 26 states
of coverage
1
along the dimensions of
industry, age, and employee size.
DATA COLLECTION
The SBCS is a convenience survey of
establishments. Businesses are con-
tacted by email through organizations
that serve the small business community
in participating Federal Reserve Districts.
The survey is conducted online and typi-
cally takes 6 to 12 minutes to complete,
depending upon the intensity of a rm’s
search for nancing. Likewise, the num-
ber of responses for each question varies
according to how many rms received
and completed a particular question.
WEIGHTING
The SBCS is not a random sample of
small employer rms, and therefore
suffers from a greater set of biases than
surveys that contact rms randomly. We
attempt to correct for biases resulting
from the convenience sample by weight-
ing the results by industry, age, and
employee size so that the distribution of
rms in the survey match the distribu-
tion of the small (1 to 500 employees)
rm population in the coverage area.
Still, caution should be taken when
interpreting the results. The data are
not a statistical representation of small
businesses. The data used for weighting
comes from 2013 demographic data
collected by the US Census Bureau.
2
COMPARISONS TO 2014 REPORT
In last year’s report (https://www.newy-
orkfed.org/smallbusiness/joint-small-
business-credit-survey-2014.html) both
employer and non-employer rms were
included in the results. This year’s report
features only employer rms. Therefore
comparisons between this year’s report
and last year’s should not be made. For
comparisons of 2014 and 2015 data see
pages 3 and 13 of the report. The 2014
data on these pages feature only em-
ployer rm data from 2014 and the 2015
data are restricted to include states that
are present in both survey years, allowing
for direct comparison.
1
See Demographics section for a complete list.
2
Age of rm data come from Business Dynamics Statistics. Industry and employee size data are from County Business Patterns.
18
2015 SMALL BUSINESS CREDIT SURVEY | REPORT ON EMPLOYER FIRMS
APPENDIX
A. BUSINESS CONDITIONS
All Employer Firms Growth Stage
Weighted percent Not growing Growing
N=3459 N=2347 N=949
PROFITABILITY, END OF 2014
At a loss 24% 24% 22%
Break even 21% 24% 15%
At a prot 55% 52% 63%
REVENUE CHANGE, PAST 12 MONTHS
Decreased 24% 33% 0%
No change 22% 31% 0%
Increased 54% 36% 100%
EMPLOYEE CHANGE, PAST 12 MONTHS
Decreased 14% 20% 0%
No change 51% 72% 0%
Increased 34% 8% 100%
EXPECTED REVENUE CHANGE, NEXT 12 MONTHS
Will decrease 9% 13% 1%
No change 19% 24% 7%
Will increase 72% 64% 93%
EXPECTED EMPLOYEE CHANGE, NEXT 12 MONTHS
Will decrease 7% 9% 0%
No change 48% 56% 29%
Will increase 45% 35% 71%
TOP BUSINESS CHALLENGE
Government regulations 10% 10% 9%
Taxes 9% 10% 8%
Credit availability 9% 8% 12%
Cash flow 22% 21% 23%
Costs of running business 19% 19% 16%
Revenues/sales 13% 15% 6%
Hiring and/or retaining qualied staff 17% 15% 24%
Other 2% 2% 3%
Data with fewer than 45 observations are not shown.
19
2015 SMALL BUSINESS CREDIT SURVEY | REPORT ON EMPLOYER FIRMS
A. BUSINESS CONDITIONS (CONTINUED)
APPENDIX (CONTINUED)
Firm Age
0–2 years 3–5 years 6–10 years 11+ years
N=326 N=353 N=517 N=2263
PROFITABILITY, END OF 2014
At a loss 52% 28% 17% 15%
Break even 18% 25% 21% 22%
At a prot 30% 47% 62% 64%
REVENUE CHANGE, PAST 12 MONTHS
Decreased 12% 18% 25% 30%
No change 22% 19% 17% 25%
Increased 66% 63% 58% 45%
EMPLOYEE CHANGE, PAST 12 MONTHS
Decreased 10% 14% 13% 17%
No change 44% 44% 49% 58%
Increased 46% 42% 38% 25%
EXPECTED REVENUE CHANGE, NEXT 12 MONTHS
Will decrease 4% 5% 8% 13%
No change 8% 10% 17% 29%
Will increase 88% 86% 76% 58%
EXPECTED EMPLOYEE CHANGE, NEXT 12 MONTHS
Will decrease 3% 3% 6% 9%
No change 35% 39% 45% 58%
Will increase 62% 58% 49% 32%
TOP BUSINESS CHALLENGE
Government regulations 4% 8% 7% 14%
Taxes 9% 7% 10% 10%
Credit availability 13% 18% 7% 5%
Cash flow 25% 30% 23% 17%
Costs of running business 23% 12% 15% 20%
Revenues/sales 10% 10% 14% 14%
Hiring and/or retaining qualied staff 15% 13% 20% 19%
Other 2% 2% 3% 2%
Data with fewer than 45 observations are not shown.
20
2015 SMALL BUSINESS CREDIT SURVEY | REPORT ON EMPLOYER FIRMS
A. BUSINESS CONDITIONS (CONTINUED)
APPENDIX (CONTINUED)
Number of Employees
1–9 employees 10–49 employees 50+ employees
N=1838 N=1250 N=371
PROFITABILITY, END OF 2014
At a loss 26% 19% 8%
Break even 23% 19% 11%
At a prot 51% 63% 81%
REVENUE CHANGE, PAST 12 MONTHS
Decreased 24% 24% 20%
No change 24% 18% 11%
Increased 52% 58% 69%
EMPLOYEE CHANGE, PAST 12 MONTHS
Decreased 13% 18% 16%
No change 57% 39% 25%
Increased 30% 44% 59%
EXPECTED REVENUE CHANGE, NEXT 12 MONTHS
Will decrease 9% 9% 12%
No change 19% 20% 16%
Will increase 72% 72% 72%
EXPECTED EMPLOYEE CHANGE, NEXT 12 MONTHS
Will decrease 6% 8% 12%
No change 51% 41% 32%
Will increase 43% 51% 56%
TOP BUSINESS CHALLENGE
Government regulations 8% 11% 25%
Taxes 10% 9% 5%
Credit availability 9% 8% 5%
Cash flow 25% 17% 8%
Costs of running business 20% 16% 14%
Revenues/sales 13% 13% 10%
Hiring and/or retaining qualied staff 14% 25% 32%
Other 2% 2% 2%
Data with fewer than 45 observations are not shown.
21
2015 SMALL BUSINESS CREDIT SURVEY | REPORT ON EMPLOYER FIRMS
A. BUSINESS CONDITIONS (CONTINUED)
APPENDIX (CONTINUED)
Annual Revenues
<$100K $100K–$1M $1M–$10M >$10M
N=391 N=1368 N=1198 N=340
PROFITABILITY, END OF 2014
At a loss 47% 22% 12% 11%
Break even 26% 23% 17% 10%
At a prot 26% 55% 71% 79%
REVENUE CHANGE, PAST 12 MONTHS
Decreased 19% 26% 27% 22%
No change 23% 21% 21% 19%
Increased 58% 53% 53% 59%
EMPLOYEE CHANGE, PAST 12 MONTHS
Decreased 11% 15% 17% 17%
No change 50% 56% 46% 33%
Increased 38% 30% 37% 50%
EXPECTED REVENUE CHANGE, NEXT 12 MONTHS
Will decrease 6% 9% 12% 11%
No change 11% 22% 22% 23%
Will increase 83% 69% 66% 66%
EXPECTED EMPLOYEE CHANGE, NEXT 12 MONTHS
Will decrease 5% 6% 9% 9%
No change 40% 52% 48% 41%
Will increase 56% 42% 43% 49%
TOP BUSINESS CHALLENGE
Government regulations 4% 8% 15% 22%
Taxes 7% 11% 9% 7%
Credit availability 13% 9% 7% 5%
Cash flow 26% 26% 16% 6%
Costs of running business 22% 17% 17% 19%
Revenues/sales 16% 11% 13% 13%
Hiring and/or retaining qualied staff 9% 16% 24% 27%
Other 3% 2% 1% 2%
Data with fewer than 45 observations are not shown.
22
2015 SMALL BUSINESS CREDIT SURVEY | REPORT ON EMPLOYER FIRMS
A. BUSINESS CONDITIONS (CONTINUED)
APPENDIX (CONTINUED)
Industry
Non-manufacturing
goods production &
associated services
Manufacturing
Retail
Leisure and hospitality
Finance and insurance
Healthcare and education
Professional services
and real estate
Business support and
consumer services
N=
689
N=
581
N=
502
N=
281
N=
114
N=
244
N=
705
N=
343
PROFITABILITY, END OF 2014
At a loss 20% 26% 28% 37% 10% 28% 19% 23%
Break even 22% 18% 24% 23% 14% 20% 20% 24%
At a prot 57% 57% 48% 40% 76% 52% 62% 53%
REVENUE CHANGE, PAST 12 MONTHS
Decreased 28% 32% 31% 22% 17% 21% 20% 21%
No change 22% 21% 26% 17% 31% 17% 21% 22%
Increased 50% 47% 43% 62% 52% 62% 59% 58%
EMPLOYEE CHANGE, PAST 12 MONTHS
Decreased 14% 18% 16% 18% 11% 14% 13% 14%
No change 52% 46% 61% 50% 62% 42% 48% 51%
Increased 34% 35% 23% 32% 27% 44% 39% 36%
EXPECTED REVENUE CHANGE, NEXT 12 MONTHS
Will decrease 11% 12% 12% 6% 13% 5% 9% 8%
No change 21% 22% 24% 15% 21% 14% 18% 20%
Will increase 68% 66% 64% 79% 66% 81% 74% 72%
EXPECTED EMPLOYEE CHANGE, NEXT 12 MONTHS
Will decrease 7% 9% 9% 6% 7% 4% 6% 6%
No change 47% 47% 61% 46% 62% 42% 44% 42%
Will increase 45% 44% 31% 48% 31% 53% 50% 52%
TOP BUSINESS CHALLENGE
Government regulations 11% 7% 4% 8% 25% 14% 10% 7%
Taxes 9% 10% 12% 8% 11% 6% 8% 11%
Credit availability 12% 7% 7% 13% 2% 11% 8% 7%
Cash flow 23% 22% 26% 18% 12% 26% 20% 21%
Costs of running business 17% 13% 21% 24% 15% 19% 14% 21%
Revenues/sales 10% 24% 17% 10% 13% 9% 17% 8%
Hiring and/or retaining qualied staff 17% 13% 13% 14% 22% 12% 20% 25%
Other 2% 4% 1% 5% 0% 2% 3% 1%
Data with fewer than 45 observations are not shown.
23
2015 SMALL BUSINESS CREDIT SURVEY | REPORT ON EMPLOYER FIRMS
APPENDIX (CONTINUED)
B. OUTSTANDING DEBT AND STARTUP FUNDING
All Employer Firms Growth Stage
Weighted percent Not growing Growing
Share with outstanding debt 63% 61% 65%
AMOUNT OF OUTSTANDING DEBT
Less than $10K 9% 10% 8%
$10K–$25K 13% 13% 13%
$25K–$50K 14% 15% 13%
$50K–$100K 18% 18% 18%
$100K–$250K 19% 19% 21%
$250K–$500K 11% 10% 10%
$500K–$1M 7% 7% 8%
$1M–$2M 4% 5% 4%
Over $2M 5% 4% 5%
COLLATERAL USED TO SECURE DEBT
Personal assets or guarantee 63% 62% 68%
Business assets 51% 51% 49%
Portions of future sales 8% 8% 7%
Unsure 1% 1% 1%
None 16% 16% 16%
Other 5% 4% 6%
FUNDING USED DURING FIRST
TWO YEARS OF OPERATIONS
Retained business earnings 30% 31% 29%
Personal funds of owner(s) 53% 52% 56%
External nancing 17% 17% 15%
Data with fewer than 45 observations are not shown.
24
2015 SMALL BUSINESS CREDIT SURVEY | REPORT ON EMPLOYER FIRMS
B. OUTSTANDING DEBT AND STARTUP FUNDING (CONTINUED)
APPENDIX (CONTINUED)
Firm Age
0–2 years 3–5 years 6–10 years 11+ years
Share with outstanding debt 61% 67% 61% 63%
AMOUNT OF OUTSTANDING DEBT
Less than $10K 14% 13% 8% 5%
$10K–$25K 19% 16% 14% 9%
$25K–$50K 12% 17% 17% 13%
$50K–$100K 17% 21% 15% 19%
$100K–$250K 20% 17% 22% 18%
$250K–$500K 9% 8% 11% 13%
$500K–$1M 6% 2% 6% 10%
$1M–$2M 2% 4% 4% 6%
Over $2M 1% 4% 1% 8%
COLLATERAL USED TO SECURE DEBT
Personal assets or guarantee 64% 60% 67% 63%
Business assets 42% 34% 48% 61%
Portions of future sales 9% 7% 10% 6%
Unsure 1% 0% 2% 1%
None 16% 24% 16% 13%
Other 6% 5% 4% 4%
FUNDING USED DURING FIRST
TWO YEARS OF OPERATIONS
Retained business earnings 31% 37% 32% 27%
Personal funds of owner(s) 55% 50% 53% 53%
External nancing 14% 14% 15% 20%
Data with fewer than 45 observations are not shown.
25
2015 SMALL BUSINESS CREDIT SURVEY | REPORT ON EMPLOYER FIRMS
B. OUTSTANDING DEBT AND STARTUP FUNDING (CONTINUED)
APPENDIX (CONTINUED)
Number of Employees
1–9 employees 10–49 employees 50+ employees
Share with outstanding debt 60% 70% 75%
AMOUNT OF OUTSTANDING DEBT
Less than $10K 12% 3% 2%
$10K–$25K 16% 6% 3%
$25K–$50K 18% 7% 2%
$50K–$100K 21% 13% 5%
$100K–$250K 18% 23% 12%
$250K–$500K 9% 18% 11%
$500K–$1M 4% 13% 14%
$1M–$2M 1% 9% 17%
Over $2M 1% 8% 35%
COLLATERAL USED TO SECURE DEBT
Personal assets or guarantee 60% 73% 65%
Business assets 44% 65% 77%
Portions of future sales 8% 8% 8%
Unsure 1% 1% 1%
None 19% 10% 6%
Other 5% 4% 5%
FUNDING USED DURING FIRST
TWO YEARS OF OPERATIONS
Retained business earnings 32% 27% 23%
Personal funds of owner(s) 53% 52% 53%
External nancing 15% 21% 24%
Data with fewer than 45 observations are not shown.
26
2015 SMALL BUSINESS CREDIT SURVEY | REPORT ON EMPLOYER FIRMS
B. OUTSTANDING DEBT AND STARTUP FUNDING (CONTINUED)
APPENDIX (CONTINUED)
Annual Revenues
<$100K $100K–$1M $1M–$10M >$10M
Share with outstanding debt 50% 66% 68% 70%
AMOUNT OF OUTSTANDING DEBT
Less than $10K 23% 8% 2% 6%
$10K–$25K 24% 15% 4% 4%
$25K–$50K 18% 19% 5% 5%
$50K–$100K 13% 23% 16% 3%
$100K–$250K 16% 21% 21% 11%
$250K–$500K 3% 8% 21% 8%
$500K–$1M 1% 5% 15% 11%
$1M–$2M 1% 2% 9% 15%
Over $2M 1% 1% 7% 38%
COLLATERAL USED TO SECURE DEBT
Personal assets or guarantee 55% 62% 74% 58%
Business assets 26% 46% 68% 75%
Portions of future sales 6% 8% 7% 9%
Unsure 3% 1% 1% 0%
None 30% 16% 9% 9%
Other 7% 4% 6% 2%
FUNDING USED DURING FIRST
TWO YEARS OF OPERATIONS
Retained business earnings 30% 33% 29% 23%
Personal funds of owner(s) 60% 51% 50% 48%
External nancing 10% 17% 21% 29%
Data with fewer than 45 observations are not shown.
27
2015 SMALL BUSINESS CREDIT SURVEY | REPORT ON EMPLOYER FIRMS
B. OUTSTANDING DEBT AND STARTUP FUNDING (CONTINUED)
APPENDIX (CONTINUED)
Industry
Non-manufacturing
goods production &
associated services
Manufacturing
Retail
Leisure and hospitality
Finance and insurance
Healthcare and education
Professional services
and real estate
Business support and
consumer services
Share with outstanding debt 64% 73% 71% 69% 43% 63% 55% 63%
AMOUNT OF OUTSTANDING DEBT
Less than $10K 4% 3% 5% 6% – 13% 12% 16%
$10K–$25K 11% 5% 12% 14% – 17% 15% 11%
$25K–$50K 13% 9% 14% 17% – 10% 14% 20%
$50K–$100K 21% 10% 21% 16% – 18% 15% 17%
$100K–$250K 19% 23% 23% 16% – 17% 19% 18%
$250K–$500K 12% 16% 12% 12% – 11% 10% 9%
$500K–$1M 9% 14% 7% 9% – 4% 6% 6%
$1M–$2M 5% 10% 2% 6% – 6% 4% 2%
Over $2M 6% 11% 4% 5% – 4% 5% 1%
COLLATERAL USED TO SECURE DEBT
Personal assets or guarantee 65% 66% 68% 66% 55% 56% 64% 61%
Business assets 54% 72% 52% 52% 52% 46% 46% 47%
Portions of future sales 10% 6% 8% 8% 8% 6% 7% 7%
Unsure 2% 1% 0% 1% 0% 4% 1% 0%
None 12% 9% 15% 14% 19% 23% 18% 16%
Other 5% 6% 3% 7% 2% 5% 4% 5%
FUNDING USED DURING FIRST
TWO YEARS OF OPERATIONS
Retained business earnings 26% 20% 32% 30% 31% 30% 33% 32%
Personal funds of owner(s) 56% 59% 47% 53% 50% 53% 54% 53%
External nancing 19% 21% 21% 17% 19% 17% 13% 15%
Data with fewer than 45 observations are not shown.
28
2015 SMALL BUSINESS CREDIT SURVEY | REPORT ON EMPLOYER FIRMS
APPENDIX (CONTINUED)
C. NON-APPLICANTS
All Employer Firms Growth Stage
Weighted percent Not growing Growing
PRIMARY REASON FOR NOT APPLYING,
NON-APPLICANTS
Sufcient nancing 49% 47% 54%
Discouraged 16% 16% 17%
Debt averse 25% 27% 20%
Credit cost high 3% 2% 2%
Search too difcult 3% 3% 2%
Other 5% 5% 5%
SOURCE(S) OF FINANCING ADVICE,
NON-APPLICANTS
Accountant, consultant, or business advisor 28% 26% 32%
Loan broker 2% 2% 4%
Banker or lender 24% 22% 28%
Friends, family, or colleagues 15% 14% 18%
Chamber of commerce or industry association 5% 4% 5%
SBDC (Small Business Development Center) 14% 12% 22%
Other source of advice 2% 2% 2%
None 50% 53% 45%
SCORE (Service Corps of Retired Executives) 3% 3% 3%
Data with fewer than 45 observations are not shown.
29
2015 SMALL BUSINESS CREDIT SURVEY | REPORT ON EMPLOYER FIRMS
C. NON-APPLICANTS (CONTINUED)
APPENDIX (CONTINUED)
Firm Age
0–2 years 3–5 years 6–10 years 11+ years
PRIMARY REASON FOR NOT APPLYING,
NON-APPLICANTS
Sufcient nancing 35% 37% 46% 58%
Discouraged 28% 20% 22% 9%
Debt averse 25% 31% 26% 24%
Credit cost high 2% 5% 2% 2%
Search too difcult 4% 4% 2% 2%
Other 7% 4% 3% 6%
SOURCE(S) OF FINANCING ADVICE,
NON-APPLICANTS
Accountant, consultant, or business advisor 28% 35% 27% 26%
Loan broker 3% 1% 4% 2%
Banker or lender 22% 20% 26% 24%
Friends, family, or colleagues 24% 25% 18% 8%
Chamber of commerce or industry association 5% 8% 7% 3%
SBDC (Small Business Development Center) 29% 21% 14% 7%
Other source of advice 1% 3% 3% 2%
None 36% 43% 50% 58%
SCORE (Service Corps of Retired Executives) 5% 6% 1% 1%
Data with fewer than 45 observations are not shown.
30
2015 SMALL BUSINESS CREDIT SURVEY | REPORT ON EMPLOYER FIRMS
C. NON-APPLICANTS (CONTINUED)
APPENDIX (CONTINUED)
Number of Employees
1–9 employees 10–49 employees 50+ employees
PRIMARY REASON FOR NOT APPLYING,
NON-APPLICANTS
Sufcient nancing 45% 57% 78%
Discouraged 18% 12% 3%
Debt averse 27% 21% 14%
Credit cost high 3% 3% 0%
Search too difcult 3% 2% 2%
Other 5% 5% 4%
SOURCE(S) OF FINANCING ADVICE,
NON-APPLICANTS
Accountant, consultant, or business advisor 27% 30% 29%
Loan broker 3% 2% 1%
Banker or lender 21% 33% 34%
Friends, family, or colleagues 16% 13% 6%
Chamber of commerce or industry association 5% 5% 3%
SBDC (Small Business Development Center) 15% 11% 11%
Other source of advice 2% 3% 1%
None 52% 45% 50%
SCORE (Service Corps of Retired Executives) 3% 3% 0%
Data with fewer than 45 observations are not shown.
31
2015 SMALL BUSINESS CREDIT SURVEY | REPORT ON EMPLOYER FIRMS
C. NON-APPLICANTS (CONTINUED)
APPENDIX (CONTINUED)
Annual Revenues
<$100K $100K–$1M $1M–$10M >$10M
PRIMARY REASON FOR NOT APPLYING,
NON-APPLICANTS
Sufcient nancing 22% 49% 66% 71%
Discouraged 35% 14% 8% 11%
Debt averse 32% 28% 18% 15%
Credit cost high 3% 3% 2% 0%
Search too difcult 2% 3% 2% 0%
Other 6% 4% 5% 4%
SOURCE(S) OF FINANCING ADVICE,
NON-APPLICANTS
Accountant, consultant, or business advisor 27% 25% 31% 31%
Loan broker 4% 2% 1% 1%
Banker or lender 19% 22% 32% 34%
Friends, family, or colleagues 25% 13% 10% 10%
Chamber of commerce or industry association 8% 4% 4% 5%
SBDC (Small Business Development Center) 26% 10% 10% 3%
Other source of advice 1% 2% 2% 2%
None 44% 56% 48% 50%
SCORE (Service Corps of Retired Executives) 6% 2% 1% 0%
Data with fewer than 45 observations are not shown.
32
2015 SMALL BUSINESS CREDIT SURVEY | REPORT ON EMPLOYER FIRMS
C. NON-APPLICANTS (CONTINUED)
APPENDIX (CONTINUED)
Industry
Non-manufacturing
goods production &
associated services
Manufacturing
Retail
Leisure and hospitality
Finance and insurance
Healthcare and education
Professional services
and real estate
Business support and
consumer services
PRIMARY REASON FOR NOT APPLYING,
NON-APPLICANTS
Sufcient nancing 50% 45% 41% 43% 67% 52% 50% 45%
Discouraged 18% 12% 17% 19% 9% 18% 17% 14%
Debt averse 23% 30% 33% 24% 16% 22% 26% 26%
Credit cost high 2% 3% 2% 3% 2% 2% 3% 2%
Search too difcult 3% 3% 2% 4% 0% 1% 1% 7%
Other 5% 6% 5% 7% 6% 4% 3% 6%
SOURCE(S) OF FINANCING ADVICE,
NON-APPLICANTS
Accountant, consultant, or business advisor 25% 29% 32% 22% 27% 34% 29% 23%
Loan broker 2% 1% 3% 4% 3% 2% 3% 1%
Banker or lender 30% 31% 22% 24% 20% 19% 25% 20%
Friends, family, or colleagues 12% 12% 14% 21% 7% 23% 16% 14%
Chamber of commerce or industry association 4% 4% 3% 4% 5% 7% 5% 6%
SBDC (Small Business Development Center) 12% 11% 11% 28% 9% 19% 10% 16%
Other source of advice 2% 2% 2% 3% 1% 1% 3% 1%
None 54% 48% 50% 45% 57% 44% 53% 51%
SCORE (Service Corps of Retired Executives) 1% 3% 2% 2% 3% 2% 3% 4%
Data with fewer than 45 observations are not shown.
33
2015 SMALL BUSINESS CREDIT SURVEY | REPORT ON EMPLOYER FIRMS
APPENDIX (CONTINUED)
D. DEMAND FOR FINANCING
All Employer Firms Growth Stage
Weighted percent Not growing Growing
Share that applied for nancing
47%
43%
55%
REASON(S) FOR SEEKING FINANCING
Operating expenses 37% 40% 31%
Renance 24% 27% 18%
Other reason 15% 14% 16%
Expand business/new opportunity 61% 56% 70%
SOURCE(S) OF FINANCING ADVICE, APPLICANTS
Accountant, consultant, or business advisor 40% 39% 44%
Loan broker 15% 15% 17%
Banker or lender 73% 73% 76%
Friends, family, or colleagues 25% 24% 26%
Chamber of commerce or industry association 8% 8% 9%
SBDC (Small Business Development Center) 29% 25% 36%
Other source of advice 5% 4% 5%
None 9% 10% 6%
SCORE (Service Corps of Retired Executives) 5% 6% 3%
FACTOR(S) INFLUENCING APPLICATION DECISION
Existing relationship with lender 55% 57% 51%
Cost 54% 54% 55%
Flexibility of the credit product(s) 37% 37% 37%
Speed of the decision process 35% 34% 36%
Ease of the application process 37% 38% 38%
Perceived chance of being funded 40% 38% 42%
Other 4% 3% 5%
Data with fewer than 45 observations are not shown.
34
2015 SMALL BUSINESS CREDIT SURVEY | REPORT ON EMPLOYER FIRMS
D. DEMAND FOR FINANCING (CONTINUED)
APPENDIX (CONTINUED)
Firm Age
0–2 years 3–5 years 6–10 years 11+ years
Share that applied for nancing 53% 55% 43% 43%
REASON(S) FOR SEEKING FINANCING
Operating expenses 45% 39% 40% 30%
Renance 17% 22% 30% 27%
Other reason 19% 7% 13% 16%
Expand business/new opportunity 63% 72% 59% 57%
SOURCE(S) OF FINANCING ADVICE, APPLICANTS
Accountant, consultant, or business advisor 37% 38% 39% 43%
Loan broker 18% 14% 23% 11%
Banker or lender 73% 72% 75% 73%
Friends, family, or colleagues 42% 26% 25% 14%
Chamber of commerce or industry association 13% 9% 8% 6%
SBDC (Small Business Development Center) 44% 41% 29% 15%
Other source of advice 5% 6% 5% 4%
None 5% 6% 6% 13%
SCORE (Service Corps of Retired Executives) 7% 8% 4% 2%
FACTOR(S) INFLUENCING APPLICATION DECISION
Existing relationship with lender 39% 49% 54% 66%
Cost 53% 53% 53% 56%
Flexibility of the credit product(s) 36% 42% 39% 34%
Speed of the decision process 39% 35% 35% 33%
Ease of the application process 37% 37% 41% 35%
Perceived chance of being funded 48% 42% 46% 32%
Other 4% 4% 5% 2%
Data with fewer than 45 observations are not shown.
35
2015 SMALL BUSINESS CREDIT SURVEY | REPORT ON EMPLOYER FIRMS
D. DEMAND FOR FINANCING (CONTINUED)
APPENDIX (CONTINUED)
Number of Employees
1–9 employees 10–49 employees 50+ employees
Share that applied for nancing 43% 56% 59%
REASON(S) FOR SEEKING FINANCING
Operating expenses 40% 33% 22%
Renance 24% 25% 23%
Other reason 14% 15% 19%
Expand business/new opportunity 61% 63% 62%
SOURCE(S) OF FINANCING ADVICE, APPLICANTS
Accountant, consultant, or business advisor 38% 44% 49%
Loan broker 17% 12% 13%
Banker or lender 71% 77% 80%
Friends, family, or colleagues 27% 22% 13%
Chamber of commerce or industry association 10% 7% 3%
SBDC (Small Business Development Center) 32% 23% 13%
Other source of advice 6% 4% 2%
None 9% 8% 11%
SCORE (Service Corps of Retired Executives) 5% 4% 0%
FACTOR(S) INFLUENCING APPLICATION DECISION
Existing relationship with lender 50% 62% 73%
Cost 51% 59% 65%
Flexibility of the credit product(s) 37% 37% 36%
Speed of the decision process 35% 35% 33%
Ease of the application process 38% 36% 32%
Perceived chance of being funded 45% 31% 26%
Other 4% 3% 2%
Data with fewer than 45 observations are not shown.
36
2015 SMALL BUSINESS CREDIT SURVEY | REPORT ON EMPLOYER FIRMS
D. DEMAND FOR FINANCING (CONTINUED)
APPENDIX (CONTINUED)
Annual Revenues
<$100K $100K–$1M $1M–$10M >$10M
Share that applied for nancing 40% 47% 50% 55%
REASON(S) FOR SEEKING FINANCING
Operating expenses 53% 37% 32% 24%
Renance 18% 28% 25% 22%
Other reason 14% 12% 16% 15%
Expand business/new opportunity 62% 61% 61% 62%
SOURCE(S) OF FINANCING ADVICE, APPLICANTS
Accountant, consultant, or business advisor 34% 36% 49% 41%
Loan broker 22% 17% 12% 7%
Banker or lender 61% 73% 80% 81%
Friends, family, or colleagues 37% 23% 20% 12%
Chamber of commerce or industry association 16% 8% 5% 2%
SBDC (Small Business Development Center) 44% 32% 15% 8%
Other source of advice 7% 4% 6% 2%
None 8% 9% 9% 10%
SCORE (Service Corps of Retired Executives) 11% 5% 2% 0%
FACTOR(S) INFLUENCING APPLICATION DECISION
Existing relationship with lender 38% 52% 65% 80%
Cost 52% 53% 56% 61%
Flexibility of the credit product(s) 35% 38% 37% 35%
Speed of the decision process 34% 35% 37% 29%
Ease of the application process 41% 37% 36% 33%
Perceived chance of being funded 61% 42% 31% 18%
Other 4% 4% 4% 2%
Data with fewer than 45 observations are not shown.
37
2015 SMALL BUSINESS CREDIT SURVEY | REPORT ON EMPLOYER FIRMS
D. DEMAND FOR FINANCING (CONTINUED)
APPENDIX (CONTINUED)
Industry
Non-manufacturing
goods production &
associated services
Manufacturing
Retail
Leisure and hospitality
Finance and insurance
Healthcare and education
Professional services
and real estate
Business support and
consumer services
Share that applied for nancing 55% 52% 42% 52% 34% 50% 39% 49%
REASON(S) FOR SEEKING FINANCING
Operating expenses 38% 36% 40% 34% 37% 45% 34% 33%
Renance 21% 22% 32% 25% 31% 28% 15% 25%
Other reason 14% 12% 11% 14% 14% 18% 12% 19%
Expand business/new opportunity 64% 65% 53% 65% 49% 56% 66% 62%
SOURCE(S) OF FINANCING ADVICE, APPLICANTS
Accountant, consultant, or business advisor 41% 41% 40% 30% – 47% 49% 40%
Loan broker 16% 11% 16% 17% – 16% 15% 12%
Banker or lender 72% 80% 73% 70% – 70% 75% 78%
Friends, family, or colleagues 17% 18% 25% 33% – 32% 28% 19%
Chamber of commerce or industry association 3% 11% 6% 10% – 14% 10% 9%
SBDC (Small Business Development Center) 22% 27% 27% 31% – 50% 28% 25%
Other source of advice 5% 7% 5% 5% – 6% 5% 5%
None 11% 8% 7% 5% – 5% 9% 8%
SCORE (Service Corps of Retired Executives) 4% 5% 6% 4% – 6% 4% 5%
FACTOR(S) INFLUENCING APPLICATION DECISION
Existing relationship with lender 64% 59% 59% 46% – 41% 57% 52%
Cost 54% 48% 52% 62% – 49% 60% 52%
Flexibility of the credit product(s) 35% 34% 33% 40% – 39% 41% 37%
Speed of the decision process 35% 38% 36% 36% – 36% 36% 26%
Ease of the application process 37% 33% 36% 39% – 46% 34% 36%
Perceived chance of being funded 36% 38% 39% 42% – 51% 41% 36%
Other 4% 7% 1% 5% – 4% 1% 7%
Data with fewer than 45 observations are not shown.
38
2015 SMALL BUSINESS CREDIT SURVEY | REPORT ON EMPLOYER FIRMS
APPENDIX (CONTINUED)
E. APPLICATIONS
All Employer Firms Growth Stage
Weighted percent Not growing Growing
NUMBER OF APPLICATIONS SUBMITTED
1 54% 57% 46%
2 23% 22% 26%
3 or more 23% 22% 27%
APPLICATION RATE BY FINANCIAL PRODUCT
Loan/line of credit 89% 89% 89%
Credit card 30% 28% 35%
Equity investment 4% 3% 7%
Leasing 11% 9% 13%
Trade credit 9% 7% 12%
Other 4% 4% 4%
Factoring 3% 3% 4%
APPLICATION RATE BY TYPE OF LOAN/LINE OF CREDIT
Business loan 52% 54% 49%
SBA loan/line of credit 21% 19% 27%
Line of credit 57% 56% 60%
Mortgage 10% 10% 11%
Cash advance 7% 8% 6%
Other product 4% 3% 5%
Auto or equipment loan 5% 5% 5%
Data with fewer than 45 observations are not shown.
39
2015 SMALL BUSINESS CREDIT SURVEY | REPORT ON EMPLOYER FIRMS
E. APPLICATIONS (CONTINUED)
APPENDIX (CONTINUED)
Firm Age
0–2 years 3–5 years 6–10 years 11+ years
NUMBER OF APPLICATIONS SUBMITTED
1 48% 55% 52% 59%
2 23% 20% 25% 22%
3 or more 30% 25% 23% 19%
APPLICATION RATE BY FINANCIAL PRODUCT
Loan/line of credit 85% 90% 92% 89%
Credit card 44% 34% 27% 21%
Equity investment 6% 5% 4% 4%
Leasing 8% 11% 9% 13%
Trade credit 10% 7% 10% 9%
Other 4% 3% 2% 5%
Factoring 2% 6% 3% 3%
APPLICATION RATE BY TYPE OF LOAN/LINE OF CREDIT
Business loan 58% 55% 52% 48%
SBA loan/line of credit 37% 29% 19% 10%
Line of credit 53% 58% 56% 59%
Mortgage 9% 5% 6% 15%
Cash advance 9% 8% 13% 4%
Other product 4% 4% 4% 3%
Auto or equipment loan 2% 4% 5% 6%
Data with fewer than 45 observations are not shown.
40
2015 SMALL BUSINESS CREDIT SURVEY | REPORT ON EMPLOYER FIRMS
E. APPLICATIONS (CONTINUED)
APPENDIX (CONTINUED)
Number of Employees
1–9 employees 10–49 employees 50+ employees
NUMBER OF APPLICATIONS SUBMITTED
1 55% 51% 59%
2 22% 27% 18%
3 or more 23% 23% 23%
APPLICATION RATE BY FINANCIAL PRODUCT
Loan/line of credit 88% 88% 95%
Credit card 33% 24% 20%
Equity investment 4% 6% 7%
Leasing 8% 17% 17%
Trade credit 8% 11% 8%
Other 4% 4% 2%
Factoring 3% 4% 3%
APPLICATION RATE BY TYPE OF LOAN/LINE OF CREDIT
Business loan 53% 49% 56%
SBA loan/line of credit 23% 19% 9%
Line of credit 54% 63% 65%
Mortgage 8% 13% 24%
Cash advance 9% 4% 1%
Other product 5% 2% 1%
Auto or equipment loan 5% 5% 2%
Data with fewer than 45 observations are not shown.
41
2015 SMALL BUSINESS CREDIT SURVEY | REPORT ON EMPLOYER FIRMS
E. APPLICATIONS (CONTINUED)
APPENDIX (CONTINUED)
Annual Revenues
<$100K $100K–$1M $1M–$10M >$10M
NUMBER OF APPLICATIONS SUBMITTED
1 47% 56% 53% 58%
2 17% 25% 25% 21%
3 or more 37% 19% 22% 21%
APPLICATION RATE BY FINANCIAL PRODUCT
Loan/line of credit 83% 90% 89% 93%
Credit card 48% 27% 24% 16%
Equity investment 8% 3% 4% 6%
Leasing 6% 9% 18% 14%
Trade credit 12% 7% 12% 11%
Other 4% 4% 4% 2%
Factoring 3% 4% 3% 3%
APPLICATION RATE BY TYPE OF LOAN/LINE OF CREDIT
Business loan 63% 51% 49% 50%
SBA loan/line of credit 36% 20% 15% 8%
Line of credit 47% 56% 64% 70%
Mortgage 6% 8% 15% 20%
Cash advance 10% 9% 5% 0%
Other product 6% 4% 2% 3%
Auto or equipment loan 3% 6% 5% 1%
Data with fewer than 45 observations are not shown.
42
2015 SMALL BUSINESS CREDIT SURVEY | REPORT ON EMPLOYER FIRMS
E. APPLICATIONS (CONTINUED)
APPENDIX (CONTINUED)
Industry
Non-manufacturing
goods production &
associated services
Manufacturing
Retail
Leisure and hospitality
Finance and insurance
Healthcare and education
Professional services
and real estate
Business support and
consumer services
NUMBER OF APPLICATIONS SUBMITTED
1 50% 47% 55% 63% 54% 50% 51% 62%
2 24% 27% 24% 20% 29% 19% 24% 21%
3 or more 26% 26% 21% 16% 17% 31% 25% 18%
APPLICATION RATE BY FINANCIAL PRODUCT
Loan/line of credit 91% 91% 89% 86% 83% 89% 89% 88%
Credit card 30% 21% 30% 24% 34% 35% 29% 32%
Equity investment 6% 7% 2% 4% 0% 4% 9% 2%
Leasing 10% 17% 9% 11% 5% 12% 12% 11%
Trade credit 16% 12% 11% 3% 6% 7% 6% 6%
Other 4% 4% 3% 7% 1% 5% 4% 2%
Factoring 4% 5% 3% 1% 3% 2% 4% 4%
APPLICATION RATE BY TYPE OF LOAN/LINE OF CREDIT
Business loan 46% 51% 51% 58% 61% 56% 52% 51%
SBA loan/line of credit 13% 19% 27% 27% 10% 33% 18% 18%
Line of credit 66% 64% 54% 41% 66% 50% 67% 52%
Mortgage 9% 12% 9% 14% 15% 11% 10% 9%
Cash advance 7% 4% 8% 5% 7% 9% 4% 12%
Other product 3% 4% 4% 4% 6% 4% 3% 4%
Auto or equipment loan 11% 3% 3% 1% 0% 2% 2% 7%
Data with fewer than 45 observations are not shown.
43
2015 SMALL BUSINESS CREDIT SURVEY | REPORT ON EMPLOYER FIRMS
APPENDIX (CONTINUED)
F. FINANCING SUCCESS AND SOURCES OF CREDIT
All Employer Firms Growth Stage
Weighted percent Not growing Growing
Overall approval rate
(% receiving at least some nancing)
82% 79% 86%
Share receiving the full amount requested 50% 48% 52%
APPROVAL RATE BY FINANCIAL PRODUCT
Credit card 80% 76% 86%
Equity 74% – –
Leasing 89% 83% 96%
Trade credit 84% 80% 90%
Other type of nancing 73% – –
Loan or line of credit 79% 77% 82%
APPROVAL RATE BY TYPE OF LOAN/LINE OF CREDIT
Business loan 69% 65% 75%
SBA loan/line of credit 59% 53% 65%
Line of credit 71% 69% 72%
Mortgage 73% 70% 78%
Cash advance 71% 70% –
Other type of loan or line of credit – – –
Auto or equipment loan 89% – –
SOURCE(S) OF LOANS AND LINES OF CREDIT
APPLICATION RATE BY SOURCE OF LOAN/LINE OF CREDIT
Large bank 42% 43% 42%
Small bank 52% 51% 54%
Credit union 9% 9% 8%
Online lender 20% 20% 18%
Other source 14% 14% 13%
APPROVAL RATE BY SOURCE OF LOAN/LINE OF
CREDIT
Large bank 58% 55% 60%
Small bank 76% 73% 81%
Credit union 59% – –
Online lender 71% 69% 77%
Other source 71% 70% 68%
NET PERCENT SATISFIED WITH LENDER, APPROVED FIRMS
Large bank 51% 49% 53%
Small bank 75% 76% 71%
Online lender 15% 7% 20%
Other lender 33% 18% –
Credit union 56% – –
Data with fewer than 45 observations are not shown.
44
2015 SMALL BUSINESS CREDIT SURVEY | REPORT ON EMPLOYER FIRMS
F. FINANCING SUCCESS AND SOURCES OF CREDIT (CONTINUED)
APPENDIX (CONTINUED)
Firm Age
0–2 years 3–5 years 6–10 years 11+ years
Overall approval rate
(% receiving at least some nancing)
79% 75% 79% 88%
Share receiving the full amount requested 42% 39% 45% 61%
APPROVAL RATE BY FINANCIAL PRODUCT
Credit card 77% 84% 81% 82%
Equity – – – –
Leasing – – – 97%
Trade credit – – – 87%
Other type of nancing – – – –
Loan or line of credit 73% 72% 76% 87%
APPROVAL RATE BY TYPE OF LOAN/LINE OF CREDIT
Business loan 56% 64% 71% 77%
SBA loan/line of credit – – 56% 66%
Line of credit 62% 62% 64% 80%
Mortgage – – – 83%
Cash advance – – – –
Other type of loan or line of credit – – – –
Auto or equipment loan – – – 95%
SOURCE(S) OF LOANS AND LINES OF CREDIT
APPLICATION RATE BY SOURCE OF LOAN/LINE OF CREDIT
Large bank 40% 45% 42% 43%
Small bank 51% 43% 46% 58%
Credit union 14% 11% 10% 4%
Online lender 26% 21% 30% 11%
Other source 14% 17% 13% 13%
APPROVAL RATE BY SOURCE OF LOAN/LINE OF
CREDIT
Large bank 46% 47% 49% 71%
Small bank 67% 64% 75% 84%
Credit union – – – –
Online lender – – 69% 73%
Other source – – – 80%
NET PERCENT SATISFIED WITH LENDER, APPROVED FIRMS
Large bank – – – 57%
Small bank 79% 66% 66% 78%
Online lender – – – 7%
Other lender – – – 53%
Credit union – – – –
Data with fewer than 45 observations are not shown.
45
2015 SMALL BUSINESS CREDIT SURVEY | REPORT ON EMPLOYER FIRMS
F. FINANCING SUCCESS AND SOURCES OF CREDIT (CONTINUED)
APPENDIX (CONTINUED)
Number of Employees
1–9 employees 10–49 employees 50+ employees
Overall approval rate
(% receiving at least some nancing)
79% 88% 96%
Share receiving the full amount requested 45% 59% 72%
APPROVAL RATE BY FINANCIAL PRODUCT
Credit card 76% 92% –
Equity – – –
Leasing 82% 95% –
Trade credit 82% 88% –
Other type of nancing – – –
Loan or line of credit 75% 87% 96%
APPROVAL RATE BY TYPE OF LOAN/LINE OF CREDIT
Business loan 63% 76% 92%
SBA loan/line of credit 54% 72% –
Line of credit 64% 78% 96%
Mortgage 62% 80% –
Cash advance 69% – –
Other type of loan or line of credit – – –
Auto or equipment loan – – –
SOURCE(S) OF LOANS AND LINES OF CREDIT
APPLICATION RATE BY SOURCE OF LOAN/LINE OF CREDIT
Large bank 40% 43% 59%
Small bank 50% 57% 49%
Credit union 10% 7% 1%
Online lender 23% 15% 4%
Other source 16% 12% 7%
APPROVAL RATE BY SOURCE OF LOAN/LINE OF
CREDIT
Large bank 48% 68% 91%
Small bank 71% 82% 98%
Credit union 57% – 59%
Online lender 67% 86% –
Other source 69% 75% –
NET PERCENT SATISFIED WITH LENDER, APPROVED FIRMS
Large bank 49% 50% 60%
Small bank 72% 81% 75%
Online lender 12% 27% –
Other lender 18% – –
Credit union – – 56%
Data with fewer than 45 observations are not shown.
46
2015 SMALL BUSINESS CREDIT SURVEY | REPORT ON EMPLOYER FIRMS
F. FINANCING SUCCESS AND SOURCES OF CREDIT (CONTINUED)
APPENDIX (CONTINUED)
Annual Revenues
<$100K $100K–$1M $1M–$10M >$10M
Overall approval rate
(% receiving at least some nancing)
70% 79% 92% 96%
Share receiving the full amount requested 37% 45% 63% 73%
APPROVAL RATE BY FINANCIAL PRODUCT
Credit card 76% 79% 87% –
Equity – – – –
Leasing – 85% 94% –
Trade credit – 88% 94% –
Other type of nancing – – – –
Loan or line of credit 65% 76% 89% 96%
APPROVAL RATE BY TYPE OF LOAN/LINE OF CREDIT
Business loan 54% 65% 81% 92%
SBA loan/line of credit – 54% 75% –
Line of credit 55% 65% 82% 91%
Mortgage – – 84% –
Cash advance – – – 71%
Other type of loan or line of credit – – – –
Auto or equipment loan – – – –
SOURCE(S) OF LOANS AND LINES OF CREDIT
APPLICATION RATE BY SOURCE OF LOAN/LINE OF CREDIT
Large bank 41% 39% 45% 58%
Small bank 44% 52% 59% 53%
Credit union 14% 9% 4% 1%
Online lender 30% 22% 11% 6%
Other source 27% 13% 10% 6%
APPROVAL RATE BY SOURCE OF LOAN/LINE OF
CREDIT
Large bank 33% 49% 72% 88%
Small bank 60% 69% 88% 96%
Credit union – – – –
Online lender – 80% 89% –
Other source – 69% 90% –
NET PERCENT SATISFIED WITH LENDER, APPROVED FIRMS
Large bank – 37% 60% 71%
Small bank – 76% 76% 74%
Online lender – 18% – –
Other lender – 23% – –
Credit union – – – –
Data with fewer than 45 observations are not shown.
47
2015 SMALL BUSINESS CREDIT SURVEY | REPORT ON EMPLOYER FIRMS
F. FINANCING SUCCESS AND SOURCES OF CREDIT (CONTINUED)
APPENDIX (CONTINUED)
Industry
Non-manufacturing
goods production &
associated services
Manufacturing
Retail
Leisure and hospitality
Finance and insurance
Healthcare and education
Professional services
and real estate
Business support and
consumer services
Overall approval rate
(% receiving at least some nancing)
86% 88% 80% 78% 76% 82% 82% 83%
Share receiving the full amount requested 55% 58% 48% 55% 38% 48% 51% 44%
APPROVAL RATE BY FINANCIAL PRODUCT
Credit card 82% 91% 82% – – – 74% 85%
Equity – – – – – – – 74%
Leasing 86% 93% – – – – – 100%
Trade credit 95% – – – – – 79% 71%
Other type of nancing – – – – – – – 73%
Loan or line of credit 83% 86% 78% 79% – 81% 76% 76%
APPROVAL RATE BY TYPE OF LOAN/LINE OF CREDIT
Business loan 71% 82% 64% 64% – 80% 60% 69%
SBA loan/line of credit – – – – – – – –
Line of credit 75% 80% 72% 70% – 65% 72% 66%
Mortgage – – – – – – – –
Cash advance – – – – – – – –
Other type of loan or line of credit – – – – – – – –
Auto or equipment loan – – – – – – – 89%
Continued on next page
Data with fewer than 45 observations are not shown.
48
2015 SMALL BUSINESS CREDIT SURVEY | REPORT ON EMPLOYER FIRMS
F. FINANCING SUCCESS AND SOURCES OF CREDIT (CONTINUED)
APPENDIX (CONTINUED)
Industry
Non-manufacturing
goods production &
associated services
Manufacturing
Retail
Leisure and hospitality
Finance and insurance
Healthcare and education
Professional services
and real estate
Business support and
consumer services
SOURCE(S) OF LOANS AND LINES OF CREDIT
APPLICATION RATE BY SOURCE OF LOAN/LINE OF CREDIT
Large bank 46% 44% 43% 35% 53% 36% 43% 44%
Small bank 53% 57% 50% 59% 48% 46% 54% 48%
Credit union 6% 4% 10% 5% 8% 13% 10% 10%
Online lender 18% 13% 21% 15% 26% 29% 13% 23%
Other source 16% 12% 11% 12% 8% 19% 14% 13%
APPROVAL RATE BY SOURCE OF LOAN/LINE OF
CREDIT
Large bank 60% 75% 56% – – – 61% 51%
Small bank 86% 80% 80% 70% – 68% 76% 72%
Credit union – – – – – – – –
Online lender – – – – – – – –
Other source 77% – – – – – – –
NET PERCENT SATISFIED WITH LENDER, APPROVED FIRMS
Large bank 48% 20% 64% – – – 63% –
Small bank 76% 83% 72% 67% – – 83% 72%
Online lender – – – – – – – –
Other lender – – – – – – – –
Credit union – – – – – – – –
Data with fewer than 45 observations are not shown.
Continued from previous page
49
2015 SMALL BUSINESS CREDIT SURVEY | REPORT ON EMPLOYER FIRMS
APPENDIX (CONTINUED)
G. FINANCING SHORTFALLS
All Employer Firms Growth Stage
Weighted percent Not growing Growing
Share receiving less than the amount requested 50% 52% 48%
REASON(S) FOR RECEIVING LESS THAN
THE AMOUNT REQUESTED
Low credit score 28% 32% 18%
Insufcient collateral 32% 34% 29%
Inadequate documentation 3% 4% 2%
Weak business performance 30% 33% 23%
Unsure 19% 18% 20%
Insufcient credit history 28% 26% 34%
Other 27% 27% 27%
PRIMARY IMPACT OF NOT RECEIVING
THE FULL AMOUNT REQUESTED
Unable to meet expenses 24% 28% 16%
Delayed expansion 24% 20% 32%
Passed on opportunity 16% 18% 11%
No impact 9% 8% 11%
Other 7% 6% 10%
Used personal funds 20% 21% 21%
Data with fewer than 45 observations are not shown.
50
2015 SMALL BUSINESS CREDIT SURVEY | REPORT ON EMPLOYER FIRMS
G. FINANCING SHORTFALLS (CONTINUED)
APPENDIX (CONTINUED)
Firm Age
0–2 years 3–5 years 6–10 years 11+ years
Share receiving less than the amount requested 58% 61% 55% 39%
REASON(S) FOR RECEIVING LESS THAN
THE AMOUNT REQUESTED
Low credit score 23% 31% 33% 26%
Insufcient collateral 25% 46% 28% 33%
Inadequate documentation 0% 4% 2% 7%
Weak business performance 18% 30% 33% 39%
Unsure 22% 11% 24% 17%
Insufcient credit history 38% 50% 24% 9%
Other 37% 20% 23% 25%
PRIMARY IMPACT OF NOT RECEIVING
THE FULL AMOUNT REQUESTED
Unable to meet expenses 24% 22% 32% 21%
Delayed expansion 18% 30% 22% 28%
Passed on opportunity 8% 20% 18% 18%
No impact 14% 5% 8% 6%
Other 9% 4% 7% 7%
Used personal funds 27% 18% 14% 20%
Data with fewer than 45 observations are not shown.
51
2015 SMALL BUSINESS CREDIT SURVEY | REPORT ON EMPLOYER FIRMS
G. FINANCING SHORTFALLS (CONTINUED)
APPENDIX (CONTINUED)
Number of Employees
1–9 employees 10–49 employees 50+ employees
Share receiving less than the amount requested 55% 41% 28%
REASON(S) FOR RECEIVING LESS THAN
THE AMOUNT REQUESTED
Low credit score 31% 18% –
Insufcient collateral 32% 33% –
Inadequate documentation 3% 4% –
Weak business performance 29% 34% –
Unsure 17% 20% –
Insufcient credit history 32% 17% –
Other 27% 26% –
PRIMARY IMPACT OF NOT RECEIVING
THE FULL AMOUNT REQUESTED
Unable to meet expenses 24% 29% –
Delayed expansion 26% 19% –
Passed on opportunity 14% 16% –
No impact 8% 11% –
Other 6% 9% –
Used personal funds 22% 17% –
Data with fewer than 45 observations are not shown.
52
2015 SMALL BUSINESS CREDIT SURVEY | REPORT ON EMPLOYER FIRMS
G. FINANCING SHORTFALLS (CONTINUED)
APPENDIX (CONTINUED)
Annual Revenues
<$100K $100K–$1M $1M–$10M >$10M
Share receiving less than the amount requested 63% 55% 37% 27%
REASON(S) FOR RECEIVING LESS THAN
THE AMOUNT REQUESTED
Low credit score 38% 27% 17% –
Insufcient collateral 41% 29% 37% –
Inadequate documentation 1% 5% 4% –
Weak business performance 32% 28% 36% –
Unsure 22% 16% 15% –
Insufcient credit history 47% 29% 18% –
Other 27% 25% 30% –
PRIMARY IMPACT OF NOT RECEIVING
THE FULL AMOUNT REQUESTED
Unable to meet expenses 29% 24% 25% –
Delayed expansion 29% 24% 24% –
Passed on opportunity 11% 17% 20% –
No impact 6% 6% 10% –
Other 9% 5% 9% –
Used personal funds 17% 24% 13% –
Data with fewer than 45 observations are not shown.
53
2015 SMALL BUSINESS CREDIT SURVEY | REPORT ON EMPLOYER FIRMS
G. FINANCING SHORTFALLS (CONTINUED)
APPENDIX (CONTINUED)
Industry
Non-manufacturing
goods production &
associated services
Manufacturing
Retail
Leisure and hospitality
Finance and insurance
Healthcare and education
Professional services
and real estate
Business support and
consumer services
Share receiving less than the amount requested 45% 42% 52% 46% 62% 52% 49% 56%
REASON(S) FOR RECEIVING LESS THAN
THE AMOUNT REQUESTED
Low credit score – – – – – – – –
Insufcient collateral 25% 25% 41% – – – 34% 30%
Inadequate documentation 4% 4% 1% – – – 6% 6%
Weak business performance 31% 35% 21% – – – 33% 38%
Unsure 17% 15% 18% – – – 15% 22%
Insufcient credit history 26% 22% 29% – – – 33% 24%
Other 30% 35% 39% – – – 26% 22%
PRIMARY IMPACT OF NOT RECEIVING
THE FULL AMOUNT REQUESTED
Unable to meet expenses 27% 22% 38% – – – 12% 26%
Delayed expansion 25% 29% 13% – – – 37% 15%
Passed on opportunity 13% 13% 11% – – – 20% 22%
No impact 7% 8% 5% – – – 6% 12%
Other 9% 10% 9% – – – 5% 2%
Used personal funds 19% 17% 24% – – – 20% 23%
Data with fewer than 45 observations are not shown.
54
2015 SMALL BUSINESS CREDIT SURVEY | REPORT ON EMPLOYER FIRMS
H. DATA FOR SELECT STATES
State
AL AR CT FL GA MA
N=179 N=144 N=196 N=367 N=216 N=395
BUSINESS CONDITIONS
Protability, end of 2014
At a loss 28% 26% 15% 30% 33% 23%
Break even 22% 22% 27% 18% 18% 18%
At a prot 50% 52% 58% 53% 49% 59%
Revenue change, past 12 months
Decreased 30% 25% 30% 21% 20% 18%
No change 27% 20% 23% 19% 17% 20%
Increased 43% 55% 47% 60% 63% 62%
Employee change, past 12 months
Decreased 14% 9% 16% 12% 18% 10%
No change 58% 59% 63% 50% 44% 43%
Increased 28% 33% 21% 39% 38% 47%
Expected revenue change, next 12 months
Will decrease 9% 12% 13% 8% 6% 3%
No change 22% 15% 26% 12% 16% 19%
Will increase 70% 74% 61% 80% 79% 78%
Expected employee change, next 12 months
Will decrease 9% 4% 12% 7% 7% 4%
No change 51% 58% 50% 35% 46% 45%
Will increase 40% 39% 39% 59% 48% 51%
Top business challenge
Government regulations 10% 9% 6% 8% 6% 8%
Taxes 10% 15% 10% 5% 16% 2%
Credit availability 5% 11% 9% 12% 6% 10%
Cash flow 27% 22% 21% 32% 26% 23%
Costs of running business 13% 14% 23% 13% 16% 19%
Revenues/sales 21% 13% 16% 16% 8% 11%
Hiring and/or retaining qualied staff 13% 15% 14% 10% 20% 24%
Other 2% 1% 2% 3% 2% 2%
APPENDIX (CONTINUED)
State data are weighted by rm age, industry, employee size, and state. Data with fewer than 45 observations are not shown.
55
2015 SMALL BUSINESS CREDIT SURVEY | REPORT ON EMPLOYER FIRMS
H. DATA FOR SELECT STATES (CONTINUED)
State
NY NC OH PA TN
N=368 N=291 N=244 N=244 N=172
BUSINESS CONDITIONS
Protability, end of 2014
At a loss 29% 19% 12% 21% 22%
Break even 30% 17% 29% 15% 20%
At a prot 42% 64% 59% 64% 58%
Revenue change, past 12 months
Decreased 29% 15% 27% 26% 21%
No change 25% 21% 29% 30% 16%
Increased 46% 64% 44% 44% 63%
Employee change, past 12 months
Decreased 17% 14% 14% 19% 16%
No change 58% 41% 57% 52% 46%
Increased 25% 45% 30% 29% 38%
Expected revenue change, next 12 months
Will decrease 13% 5% 9% 15% 9%
No change 19% 13% 30% 24% 15%
Will increase 68% 82% 62% 61% 77%
Expected employee change, next 12 months
Will decrease 10% 4% 5% 10% 3%
No change 42% 47% 54% 51% 49%
Will increase 48% 49% 41% 39% 48%
Top business challenge
Government regulations 8% 16% 10% 12% 8%
Taxes 7% 6% 9% 13% 9%
Credit availability 14% 10% 5% 6% 9%
Cash flow 23% 18% 13% 19% 18%
Costs of running business 23% 17% 21% 19% 20%
Revenues/sales 13% 10% 9% 12% 19%
Hiring and/or retaining qualied staff 10% 20% 30% 17% 17%
Other 3% 2% 4% 2% 0%
APPENDIX (CONTINUED)
State data are weighted by rm age, industry, employee size, and state. Data with fewer than 45 observations are not shown.
56
2015 SMALL BUSINESS CREDIT SURVEY | REPORT ON EMPLOYER FIRMS
H. DATA FOR SELECT STATES (CONTINUED)
State
AL AR CT FL GA MA
OUTSTANDING DEBT AND STARTUP FUNDING
Share with prior outstanding debt 59% 76% 62% 61% 74% 59%
Amount of outstanding debt
Less than $10K 7% 4% 8% 13% 5% 10%
$10K–$25K 15% 13% 12% 15% 16% 13%
$25K–$50K 12% 9% 8% 11% 14% 18%
$50K–$100K 13% 13% 19% 18% 14% 13%
$100K–$250K 19% 29% 18% 17% 19% 19%
$250K–$500K 8% 15% 17% 7% 13% 12%
$500K–$1M 4% 9% 10% 7% 8% 9%
$1M–$2M 8% 4% 4% 6% 5% 4%
Over $2M 14% 4% 4% 5% 6% 2%
Collateral used to secure debt
Personal assets or guarantee 67% 71% 66% 64% 66% 64%
Business assets 55% 56% 53% 42% 58% 51%
Portions of future sales 12% 4% 4% 9% 8% 4%
Unsure 2% 0% 0% 1% 1% 2%
None 17% 9% 13% 15% 15% 16%
Other 3% 6% 4% 6% 7% 6%
Funding used during rst two
years of operations
Retained business earnings 21% 32% 26% 26% 31% 35%
Personal funds of owner(s) 57% 40% 59% 64% 48% 53%
External nancing 22% 28% 16% 11% 22% 12%
APPENDIX (CONTINUED)
State data are weighted by rm age, industry, employee size, and state. Data with fewer than 45 observations are not shown.
57
2015 SMALL BUSINESS CREDIT SURVEY | REPORT ON EMPLOYER FIRMS
H. DATA FOR SELECT STATES (CONTINUED)
State
NY NC OH PA TN
OUTSTANDING DEBT AND STARTUP FUNDING
Share with prior outstanding debt 54% 62% 56% 69% 57%
Amount of outstanding debt
Less than $10K 15% 14% 1% 6% 1%
$10K–$25K 11% 11% 18% 8% 7%
$25K–$50K 12% 17% 16% 15% 17%
$50K–$100K 25% 19% 15% 18% 21%
$100K–$250K 22% 12% 22% 23% 25%
$250K–$500K 4% 12% 15% 16% 8%
$500K–$1M 5% 6% 7% 9% 9%
$1M–$2M 4% 3% 3% 3% 2%
Over $2M 3% 6% 3% 3% 9%
Collateral used to secure debt
Personal assets or guarantee 59% 63% 59% 62% 74%
Business assets 37% 52% 60% 51% 42%
Portions of future sales 14% 8% 5% 10% 4%
Unsure 2% 3% 1% 2% 0%
None 26% 15% 17% 18% 13%
Other 3% 3% 1% 4% 6%
Funding used during rst two
years of operations
Retained business earnings 33% 37% 36% 32% 23%
Personal funds of owner(s) 57% 43% 50% 54% 57%
External nancing 9% 20% 13% 14% 21%
APPENDIX (CONTINUED)
State data are weighted by rm age, industry, employee size, and state. Data with fewer than 45 observations are not shown.
58
2015 SMALL BUSINESS CREDIT SURVEY | REPORT ON EMPLOYER FIRMS
H. DATA FOR SELECT STATES (CONTINUED)
State
AL AR CT FL GA MA
NON-APPLICANTS
Primary reason for not applying,
non-applicants
Sufcient nancing 52% 51% 61% 32% 44% 52%
Discouraged 14% 17% 10% 24% 21% 22%
Debt averse 25% 27% 23% 26% 24% 20%
Credit cost high 3% 0% 0% 4% 0% 2%
Search too difcult 0% 0% 2% 8% 3% 1%
Other 7% 4% 5% 6% 8% 4%
Sources of nancing advice, non-applicants
Accountant, consultant, or business advisor 22% 28% 21% 25% 37% 33%
Loan broker 0% 2% 2% 1% 11% 2%
Banker or lender 21% 23% 18% 23% 32% 25%
Friends, family, or colleagues 9% 10% 13% 15% 22% 22%
Chamber of commerce or industry association 2% 5% 7% 7% 5% 6%
SBDC (Small Business Development Center) 12% 22% 4% 28% 20% 19%
Other source of advice 2% 3% 1% 5% 1% 3%
None 61% 50% 65% 41% 42% 40%
SCORE (Service Corps of Retired Executives) 0% 2% 1% 8% 2% 3%
APPENDIX (CONTINUED)
State data are weighted by rm age, industry, employee size, and state. Data with fewer than 45 observations are not shown.
59
2015 SMALL BUSINESS CREDIT SURVEY | REPORT ON EMPLOYER FIRMS
H. DATA FOR SELECT STATES (CONTINUED)
State
NY NC OH PA TN
NON-APPLICANTS
Primary reason for not applying,
non-applicants
Sufcient nancing 36% 59% 55% 51% 58%
Discouraged 23% 13% 9% 12% 12%
Debt averse 30% 21% 32% 28% 16%
Credit cost high 4% 2% 2% 0% 4%
Search too difcult 4% 1% 1% 3% 1%
Other 4% 4% 2% 6% 9%
Sources of nancing advice, non-applicants
Accountant, consultant, or business advisor 25% 30% 24% 27% 34%
Loan broker 2% 5% 1% 0% 0%
Banker or lender 19% 31% 11% 27% 25%
Friends, family, or colleagues 17% 15% 14% 14% 19%
Chamber of commerce or industry association 5% 4% 5% 3% 7%
SBDC (Small Business Development Center) 13% 10% 14% 8% 15%
Other source of advice 3% 1% 3% 1% 0%
None 54% 52% 61% 53% 42%
SCORE (Service Corps of Retired Executives) 2% 1% 0% 1% 7%
APPENDIX (CONTINUED)
State data are weighted by rm age, industry, employee size, and state. Data with fewer than 45 observations are not shown.
60
2015 SMALL BUSINESS CREDIT SURVEY | REPORT ON EMPLOYER FIRMS
H. DATA FOR SELECT STATES (CONTINUED)
State
AL AR CT FL GA MA
DEMAND FOR FINANCING
Share that applied for nancing 44% 52% 46% 52% 53% 45%
Reasons for seeking nancing
Operating expenses 38% 32% 40% 40% 40% 40%
Renance 22% 26% 25% 30% 20% 28%
Other reason 22% 21% 8% 14% 7% 14%
Expand business/new opportunity 47% 62% 66% 61% 63% 59%
Sources of nancing advice, applicants
Accountant, consultant, or business advisor 40% 33% 47% 42% 39% 50%
Loan broker 13% 13% 15% 26% 10% 18%
Banker or lender 78% 76% 75% 71% 76% 74%
Friends, family, or colleagues 23% 28% 14% 30% 27% 21%
Chamber of commerce or industry association 10% 3% 6% 16% 7% 7%
SBDC (Small Business Development Center) 17% 43% 29% 43% 54% 32%
Other source of advice 3% 0% 3% 5% 9% 3%
None 9% 6% 11% 8% 3% 7%
SCORE (Service Corps of Retired Executives) 2% 3% 7% 11% 8% 6%
Factors influencing application decision
Existing relationship with lender 59% 62% 54% 44% 56% 59%
Cost 58% 60% 55% 53% 47% 50%
Flexibility of the credit product(s) 33% 32% 36% 42% 32% 37%
Speed of the decision process 38% 31% 39% 32% 26% 37%
Ease of the application process 25% 39% 40% 30% 34% 43%
Perceived chance of being funded 41% 36% 41% 55% 35% 42%
Other 5% 3% 2% 1% 7% 5%
APPENDIX (CONTINUED)
State data are weighted by rm age, industry, employee size, and state. Data with fewer than 45 observations are not shown.
61
2015 SMALL BUSINESS CREDIT SURVEY | REPORT ON EMPLOYER FIRMS
H. DATA FOR SELECT STATES (CONTINUED)
State
NY NC OH PA TN
DEMAND FOR FINANCING
Share that applied for nancing 42% 40% 46% 46% 49%
Reasons for seeking nancing
Operating expenses 44% 41% 29% 28% 36%
Renance 27% 23% 17% 19% 25%
Other reason 9% 10% 24% 16% 22%
Expand business/new opportunity 71% 63% 56% 66% 50%
Sources of nancing advice, applicants
Accountant, consultant, or business advisor 35% 39% 46% 48% 38%
Loan broker 21% 17% 6% 8% 12%
Banker or lender 70% 74% 79% 69% 79%
Friends, family, or colleagues 28% 23% 21% 26% 23%
Chamber of commerce or industry association 8% 8% 10% 15% 5%
SBDC (Small Business Development Center) 31% 20% 24% 17% 15%
Other source of advice 6% 4% 3% 0% 16%
None 9% 10% 10% 11% 9%
SCORE (Service Corps of Retired Executives) 2% 6% 1% 6% 1%
Factors influencing application decision
Existing relationship with lender 47% 54% 58% 59% 56%
Cost 61% 68% 42% 59% 55%
Flexibility of the credit product(s) 42% 48% 33% 30% 32%
Speed of the decision process 41% 45% 30% 35% 29%
Ease of the application process 46% 42% 44% 35% 30%
Perceived chance of being funded 47% 45% 40% 25% 35%
Other 6% 1% 2% 4% 4%
APPENDIX (CONTINUED)
State data are weighted by rm age, industry, employee size, and state. Data with fewer than 45 observations are not shown.
62
2015 SMALL BUSINESS CREDIT SURVEY | REPORT ON EMPLOYER FIRMS
H. DATA FOR SELECT STATES (CONTINUED)
State
AL AR CT FL GA MA
APPLICATIONS
Number of applications submitted
1 54% 64% 47% 44% 51% 61%
2 25% 20% 31% 22% 25% 21%
3 or more 20% 16% 21% 33% 23% 19%
Application rate by nancial product
Loan/line of credit 92% 86% 90% 92% 87% 89%
Credit card 21% 23% 29% 36% 48% 27%
Equity investment 3% 8% 3% 7% 6% 4%
Leasing 20% 6% 14% 10% 14% 8%
Trade credit 15% 4% 6% 8% 11% 12%
Other 1% 4% 3% 3% 3% 3%
Factoring 3% 0% 3% 7% 2% 3%
Application rate by type of loan/line of credit
Business loan 50% 54% 48% 61% 51% 39%
SBA loan/line of credit 11% 24% 15% 24% 32% 24%
Line of credit 69% 51% 71% 61% 53% 51%
Mortgage 11% 8% 9% 11% 14% 13%
Cash advance 7% 2% 2% 18% 1% 1%
Other product 1% 2% 1% 5% 2% 8%
Auto or equipment loan 5% 3% 2% 3% 3% 5%
APPENDIX (CONTINUED)
State data are weighted by rm age, industry, employee size, and state. Data with fewer than 45 observations are not shown.
63
2015 SMALL BUSINESS CREDIT SURVEY | REPORT ON EMPLOYER FIRMS
H. DATA FOR SELECT STATES (CONTINUED)
State
NY NC OH PA TN
APPLICATIONS
Number of applications submitted
1 51% 51% 65% 56% 55%
2 25% 26% 23% 18% 26%
3 or more 25% 23% 12% 26% 19%
Application rate by nancial product
Loan/line of credit 85% 95% 82% 93% 91%
Credit card 39% 22% 21% 28% 26%
Equity investment 7% 4% 2% 3% 1%
Leasing 10% 9% 14% 13% 11%
Trade credit 10% 8% 9% 9% 7%
Other 6% 1% 6% 3% 12%
Factoring 6% 1% 0% 0% 3%
Application rate by type of loan/line of credit
Business loan 56% 57% 43% 50% 40%
SBA loan/line of credit 29% 26% 18% 12% 5%
Line of credit 59% 58% 56% 61% 68%
Mortgage 6% 16% 12% 10% 9%
Cash advance 13% 4% 0% 9% 6%
Other product 2% 3% 1% 6% 9%
Auto or equipment loan 3% 2% 7% 5% 5%
APPENDIX (CONTINUED)
State data are weighted by rm age, industry, employee size, and state. Data with fewer than 45 observations are not shown.
64
2015 SMALL BUSINESS CREDIT SURVEY | REPORT ON EMPLOYER FIRMS
H. DATA FOR SELECT STATES (CONTINUED)
State
AL AR CT FL GA MA
FINANCING SUCCESS AND SOURCES OF CREDIT
Number of applications submitted
1 54% 64% 47% 44% 51% 61%
2 25% 20% 31% 22% 25% 21%
3 or more 20% 16% 21% 33% 23% 19%
Application rate by nancial product
Loan/line of credit 92% 86% 90% 92% 87% 89%
Credit card 21% 23% 29% 36% 48% 27%
Equity investment 3% 8% 3% 7% 6% 4%
Leasing 20% 6% 14% 10% 14% 8%
Trade credit 15% 4% 6% 8% 11% 12%
Other 1% 4% 3% 3% 3% 3%
Factoring 3% 0% 3% 7% 2% 3%
Application rate by type of loan/line of credit
Business loan 50% 54% 48% 61% 51% 39%
SBA loan/line of credit 11% 24% 15% 24% 32% 24%
Line of credit 69% 51% 71% 61% 53% 51%
Mortgage 11% 8% 9% 11% 14% 13%
Cash advance 7% 2% 2% 18% 1% 1%
Other product 1% 2% 1% 5% 2% 8%
Auto or equipment loan 5% 3% 2% 3% 3% 5%
APPENDIX (CONTINUED)
State data are weighted by rm age, industry, employee size, and state. Data with fewer than 45 observations are not shown.
65
2015 SMALL BUSINESS CREDIT SURVEY | REPORT ON EMPLOYER FIRMS
H. DATA FOR SELECT STATES (CONTINUED)
State
NY NC OH PA TN
FINANCING SUCCESS AND SOURCES OF CREDIT
Number of applications submitted
1 51% 51% 65% 56% 55%
2 25% 26% 23% 18% 26%
3 or more 25% 23% 12% 26% 19%
Application rate by nancial product
Loan/line of credit 85% 95% 82% 93% 91%
Credit card 39% 22% 21% 28% 26%
Equity investment 7% 4% 2% 3% 1%
Leasing 10% 9% 14% 13% 11%
Trade credit 10% 8% 9% 9% 7%
Other 6% 1% 6% 3% 12%
Factoring 6% 1% 0% 0% 3%
Application rate by type of loan/line of credit
Business loan 56% 57% 43% 50% 40%
SBA loan/line of credit 29% 26% 18% 12% 5%
Line of credit 59% 58% 56% 61% 68%
Mortgage 6% 16% 12% 10% 9%
Cash advance 13% 4% 0% 9% 6%
Other product 2% 3% 1% 6% 9%
Auto or equipment loan 3% 2% 7% 5% 5%
APPENDIX (CONTINUED)
State data are weighted by rm age, industry, employee size, and state. Data with fewer than 45 observations are not shown.
66
2015 SMALL BUSINESS CREDIT SURVEY | REPORT ON EMPLOYER FIRMS
H. DATA FOR SELECT STATES (CONTINUED)
State
AL AR CT FL GA MA
FINANCING SUCCESS
Overall approval rate (% receiving at least some nancing) 85% 84% 82% 70% 87% 82%
Share receiving the full amount requested 56% 64% 44% 29% 52% 56%
Approval rate by nancial product
Credit card – – – 68% – –
Equity – – – – – –
Leasing – – – – – –
Trade credit – – – – – –
Other type of nancing – – – – – –
Loan or line of credit 82% 81% 83% 64% 81% 80%
Approval rate by type of loan/line of credit
Business loan 74% – – 56% 65% 71%
SBA loan/line of credit – – – – – –
Line of credit 72% – 67% 48% 88% 75%
Mortgage – – – – – –
Cash advance – – – – – –
Other type of loan or line of credit – – – – – –
Auto or equipment loan – – – – – –
Sources of loans and lines of credit
Application rate by source of loan/line of credit
Large bank 47% 27% 46% 59% 39% 31%
Small bank 66% 68% 52% 44% 66% 59%
Credit union 6% 0% 5% 17% 5% 15%
Online lender 12% 6% 17% 35% 14% 12%
Other source 7% 7% 16% 17% 10% 15%
Approval rate by source of loan/line of credit
Large bank – – – 41% 72% –
Small bank 80% – – 43% 78% 78%
Credit union – – – – – –
Online lender – – – – – –
Other source – – – – – –
Net percent satised with lender,
approved rms
Large bank – – – 18% – –
Small bank 91% – – – 79% 68%
Online lender – – – – – –
Other lender – – – – – –
Credit union – – – – – –
APPENDIX (CONTINUED)
State data are weighted by rm age, industry, employee size, and state. Data with fewer than 45 observations are not shown.
67
2015 SMALL BUSINESS CREDIT SURVEY | REPORT ON EMPLOYER FIRMS
H. DATA FOR SELECT STATES (CONTINUED)
APPENDIX (CONTINUED)
State
NY NC OH PA TN
FINANCING SUCCESS
Overall approval rate (% receiving at least some nancing) 73% 83% 89% 86% 87%
Share receiving the full amount requested 33% 52% 60% 50% 55%
Approval rate by nancial product
Credit card – – – – –
Equity – – – – –
Leasing – – – – –
Trade credit – – – – –
Other type of nancing – – – – –
Loan or line of credit 68% 81% 89% 86% 85%
Approval rate by type of loan/line of credit
Business loan 51% 66% – 85% –
SBA loan/line of credit – – – – –
Line of credit 46% 83% 91% 73% 81%
Mortgage – – – – –
Cash advance – – – – –
Other type of loan or line of credit – – – – –
Auto or equipment loan – – – – –
Sources of loans and lines of credit
Application rate by source of loan/line of credit
Large bank 63% 47% 47% 49% 35%
Small bank 30% 47% 42% 42% 55%
Credit union 7% 5% 6% 16% 4%
Online lender 32% 15% 8% 20% 12%
Other source 19% 17% 10% 8% 17%
Approval rate by source of loan/line of credit
Large bank 48% 71% 79% 68% –
Small bank – 83% 81% – 90%
Credit union – – – – –
Online lender – – – – –
Other source – – – – –
Net percent satised with lender,
approved rms
Large bank – 61% – – –
Small bank – 55% – – –
Online lender – – – – –
Other lender – – – – –
Credit union – – – – –
State data are weighted by rm age, industry, employee size, and state. Data with fewer than 45 observations are not shown.
68
2015 SMALL BUSINESS CREDIT SURVEY | REPORT ON EMPLOYER FIRMS
H. DATA FOR SELECT STATES (CONTINUED)
State
AL AR CT FL GA MA
FINANCING SHORTFALLS
Share receiving less than the amount requested 44% 36% 56% 71% 48% 44%
Reason for receiving less
than the amount requested
Low credit score – – – 39% – –
Insufcient collateral – – – 32% – –
Inadequate documentation – – – 4% – –
Weak business performance – – – 34% – –
Unsure – – – 13% – –
Insufcient credit history – – – 24% – –
Other – – – 23% – –
Primary impact of not receiving
the full amount requested
Unable to meet expenses – – – 29% – –
Delayed expansion – – – 30% – –
Passed on opportunity – – – 12% – –
No impact – – – 5% – –
Other – – – 6% – –
Used personal funds – – – 18% – –
APPENDIX (CONTINUED)
State data are weighted by rm age, industry, employee size, and state. Data with fewer than 45 observations are not shown.
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2015 SMALL BUSINESS CREDIT SURVEY | REPORT ON EMPLOYER FIRMS
H. DATA FOR SELECT STATES (CONTINUED)
State
NY NC OH PA TN
FINANCING SHORTFALLS
Share receiving less than the amount requested 67% 48% 40% 50% 45%
Reason for receiving less
than the amount requested
Low credit score 19% – – – –
Insufcient collateral 33% – – – –
Inadequate documentation 4% – – – –
Weak business performance 30% – – – –
Unsure 20% – – – –
Insufcient credit history 35% – – – –
Other 21% – – – –
Primary impact of not receiving
the full amount requested
Unable to meet expenses 23% – – – –
Delayed expansion 30% – – – –
Passed on opportunity 26% – – – –
No impact 5% – – – –
Other 8% – – – –
Used personal funds 7% – – – –
APPENDIX (CONTINUED)
State data are weighted by rm age, industry, employee size, and state. Data with fewer than 45 observations are not shown.
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2015 SMALL BUSINESS CREDIT SURVEY | REPORT ON EMPLOYER FIRMS
APPENDIX (CONTINUED)
I. PARTNER ORGANIZATIONS
NATIONAL PARTNER ORGANIZATIONS
Accion U.S. Network
NFIB Research Foundation
FEDERAL RESERVE BANK OF ATLANTA
Alabama Economics Club
Alabama MicroEnterprise Network
Alabama SBDC Network
Baldwin Country (AL) Economic Development Alliance
Baton Rouge (AL) Area Chamber
Chamber of Commerce Association of Alabama
Chattanooga Area (TN) Chamber of Commerce
Committee of 100 (LA) for Economic Development
East Mississippi Business Development Corp.
Economic Development Commission of Florida's Space Coast
Florida Chamber of Commerce
Florida SBDC Network
Greater Fort Lauderdale Convention and Visitors Bureau
Huntsville (AL) Chamber of Commerce of Huntsville/
Madison County (AL)
Jeff Davis Parish (LA) Economic Development,
Tourist Commission and Chamber of Commerce
Middle Tennessee Association of REALTORS
®
New Orleans Regional Committee for Business Economists
Northeast Florida Association of Realtors
SBDC Network at Florida International University
Technology Association of Georgia
Tennessee Chamber of Commerce & Industry
University of Georgia SBDC Network
FEDERAL RESERVE BANK OF BOSTON
Berkshires Chamber of Commerce
Cape Cod Chamber of Commerce
City of Boston—Ofce of Neighborhood Development
City of Holyoke
Commonwealth of Massachusetts—
Operational Services Division
Greater Boston Chamber of Commerce
Immigrant Learning Center
Massachusetts Small Business Development Center
MCBC Economic Development Committee
Merrimack Valley Chamber of Commerce
Metro South Chamber of Commerce
Middlesex County Chamber of Commerce
Nashoba Valley Chamber of Commerce
New Bedford Chamber of Commerce
North Central Massachusetts Chamber of Commerce
North Shore Chamber of Commerce
Plymouth Area Chamber of Commerce
Retailers Association of Massachusetts
South Boston Neighborhood Development Center/
Chamber of Commerce
South Eastern Economic Development (SEED) Corp.
South Shore Chamber of Commerce
Worcester Regional Chamber of Commerce
FEDERAL RESERVE BANK OF CLEVELAND
African American Chamber of Commerce of
Western Pennsylvania
African American Chamberof Greater Cincinnati/
Northern Kentucky
Cincinnati USA Regional Chamber
Commerce Lexington
Dayton Human Relations Council
Erie Manufacturer and Business Association
Gannon University Small Business Development Center
Greater Cincinnati Microenterprise Initiative
Kentucky Small Business Development Center
KY Innovation Network
Northern KY Chamberof Commerce
Northwest Industrial Resource Center
Ohio Development Services Agency
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2015 SMALL BUSINESS CREDIT SURVEY | REPORT ON EMPLOYER FIRMS
APPENDIX (CONTINUED)
I. PARTNER ORGANIZATIONS (CONTINUED)
FEDERAL RESERVE BANK OF NEW YORK
AccionEast
African American Chamber of Commerce of Westchester &
Rockland Counties
Binghamton Chamber of Commerce
Bridgeport Economic Development Corporation
Bridgeport Regional Business Council
Brooklyn Chamber of Commerce
Buffalo Niagra Partnership
Business Council of Faireld
Center State Corporation for Economic Opportunity
Central NY International Business Alliance (CNYIBA)
Community Capital NY
Community Loan Fund of the Capital Region
Connecticut Business and Industry Association
Connecticut Center for Advanced Technology
Connecticut Economic Resource Center, Inc.
Connecticut Small Business Development Center
Connecticut Technology Council
Cooperative Business Assistant Corp (CDFI)
Department of Development Services, City of Hartford
Department of Economic and Community Development,
Connecticut Ofce of Small Business Affairs
Development Authority of the North Country
Empire State Development
Erie County Medical Center
Greater Rochester Enterprise
Intersect Fund
Kiva
Long Island Association
Manhattan Small Business Development Center
at Pace University
Meadowlands Chamber of Commerce
MetroHartford Alliance
Newark Regional Business Partnership
New Jersey Business and Industry Association (NJBIA)
New Jersey Community Capital
New Jersey District Ofce, U.S. Small Business Administration
New Jersey Economic Development Authority
New Jersey Institute of Technology
New York Bankers Association
New York Business Development Corporation
New York City Department of Consumer Affairs
New York City Department of Small Business Services
New York State Department of Agriculture
Ofce of Planning and Economic Development,
City of Bridgeport
Port Authority of New York & New Jersey
Queens Chamber of Commerce
Queens Economic Development Corporation
reSet Social Enterprise Trust
Rising Tide Capital
Rochester Business Alliance
Rutgers-Newark Small Business Development Center
Staten Island Chamber of Commerce
Statewide Hispanic Chamber of Commerce of New Jersey
United State Department of Agriculture Rural Development
VEDC
Yale Entrepreneurial Institute
Yates County Chamber of Commerce
FEDERAL RESERVE BANK OF PHILADELPHIA
Carlisle Area Chamber of Commerce
Central Commission, Pennsylvania Partnership
for Regional Economic Performance
Entrepreneur Works
Finanta
Lebanon Valley Chamber of Commerce
Northern Tier, Pennsylvania Partnership
for Regional Economic Performance
Northwest Commission, Pennsylvania Partnership
for Regional Economic Performance
Pennsylvania Small Business Development Center
PIDC
Southeast Commission, Pennsylvania Partnership
for Regional Economic Performance
The Greater Scranton Chamber of Commerce
United Bank of Philadelphia
Upper Bucks Chamber of Commerce
Welcoming Center for New Pennsylvanians
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2015 SMALL BUSINESS CREDIT SURVEY | REPORT ON EMPLOYER FIRMS
APPENDIX (CONTINUED)
I. PARTNER ORGANIZATIONS (CONTINUED)
FEDERAL RESERVE BANK OF RICHMOND
Asheville Area Chamber of Commerce
Beech Mountain Chamber of Commerce
Carteret County Chamber of Commerce
Cherokee County Chamber of Commerce (GA)
CommunityWorks
Durham Convention & Visitors Bureau
Greensboro, NC Chamber of Commerce
Holly Springs Chamber of Commerce
iNvictus Ofce Center
KemperStrategy, Inc.
Moore County Chamber of Commerce
NC Business Alliance
NC Community Colleges Small Business Center Network (SBCs)
NC Small Business and Technology Distribution Center (SBTDC)
Rowan County Chamber of Commerce
Roxboro Area Chamber of Commerce
Rutherford County Chamber of Commerce
SC Business Alliance
SC Small Business Centers
The Greater Raleigh Chamber of Commerce
The Support Center (Raleigh, NC)
U.S. Small Business Administration
Upper Coastal Plain Council of Governments/
Upper Coastal Plain Business Development Center
Wilkes Chamber of Commerce
Yadkin County Chamber of Commerce
FEDERAL RESERVE BANK OF ST. LOUIS
Arkansas Small Business and Technology
Development Center
Arkansas State Chamber of Commerce
Community Ventures
Economic Development Growth Engine for Memphis
and Shelby County
eFactory-Missouri State University Business Incubator
IFF (CDFI)-St Louis Ofce
justine PETERSEN (CDFI)
LiftFund
Memphis Ofce of Resources and Enterprise
Mid-South Minority Business Council Continuum
Mississippi Development Authority
Northwest Tennessee Development District
Southern Illinois University Business Incubator
Tennessee Small Business Development Center-Memphis
