Get Financing Now: Overcoming the Challenges of Business Loans

Small businesses are finding it increasingly difficult and expensive to access loans, according to new research. Approval rates for small business loans have been falling, with banks approving just 13% of loan applications in October, down from 14.7% the previous year and 28% in October 2019. Credit unions have fared even worse, with approvals sinking to an all-time low. In addition, the loans that small businesses do manage to secure are costing them more. 40% of senior loan officers surveyed by the Federal Reserve reported increased costs for small business credit lines and higher premiums for riskier loans, and interest rates have also risen sharply. The findings indicate that small businesses are having to make difficult decisions on how to finance projects and that more than half of banks are experiencing weaker demand for small business loans.