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2015 SMALL BUSINESS CREDIT SURVEY Report on Employer Firms FEDERAL RESERVE BANKS of NEW YORK ATLANTA BOSTON CLEVELAND PHILADELPHIA RICHMOND ST. LOUIS MARCH 2016 TABLE OF CONTENTS i ACKNOWLEDGEMENTS 18 APPENDIX iii EXECUTIVE SUMMARY 18 A. BUSINESS CONDITIONS 23 1 DEMOGRAPHICS B. O UTSTANDING DEBT AND STARTUP FUNDING 3 PERFORMANCE 28 C. NON-APPLICANTS 4 EMPLOYMENT 33 D. DEMAND FOR FINANCING 5 BUSINESS CHALLENGES 38 E. A PPLICATIONS 43 6 FINANCING AND DEBT F. F INANCING SUCCESS AND SOURCES OF CREDIT 49 G. FINANCING SHORTFALLS 7 DEMAND FOR FINANCING 54 H. DATA FOR SELECT STATES 70 I. PARTNER ORGANIZATIONS 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 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 financing 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 Officers, 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 Officer, Federal Reserve Bank of Boston Jessica Milano, Deputy Assistant Secretary, U.S. Department of the Treasury Nathan Dietz, Senior Research Associate, Urban Institute Joyce Klein, Director, FIELD, The Aspen Institute Gwendy Donaker Brown, Vice President, Research and Policy, Opportunity Fund Karen Leone de Nie, Assistant Vice President, Federal Reserve Bank of Atlanta Donna Fabiani, Executive Vice President, Knowledge Sharing, Opportunity Finance Network Tameka Montgomery, Associate Administrator, U.S. Small Business Administration Joseph Firschein, Deputy Associate Director and Community Affairs Officer, Federal Reserve Board of Governors Paul Quintero, CEO, AccionEast Todd Greene, Vice President and Community Affairs Officer, 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 Officer, 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 Theresa Singleton, Vice President and Community Affairs Officer, Federal Reserve Bank of Philadelphia Yvonne Sparks, Assistant Vice President and Community Affairs Officer, 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 Officer, 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. 2015 SMALL BUSINESS CREDIT SURVEY | REPORT ON EMPLOYER FIRMS i ACKNOWLEDGEMENTS (CONTINUED) This report is the result of the collaborative effort, input, and analysis of the following individuals. REPORT TEAM OUTREACH TEAM Brett Barkley, Federal Reserve Bank of Cleveland Kyan Bishop, Federal Reserve Bank of Atlanta Claire Kramer Mills, Federal Reserve Bank of New York Bonnie Blankenship, Federal Reserve Bank of Cleveland Maria Carmelita Recto, Federal Reserve Bank of New York Jeanne Milliken Bonds, Federal Reserve Bank of Richmond Ellyn Terry, Federal Reserve Bank of Atlanta Nathaniel Borek, Federal Reserve Bank of Philadelphia Emily Wavering, Federal Reserve Bank of Richmond 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 field 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 Officer Federal Reserve Bank of New York 2015 SMALL BUSINESS CREDIT SURVEY | REPORT ON EMPLOYER FIRMS ii EXECUTIVE SUMMARY 2015 SMALL BUSINESS CREDIT SURVEY: EMPLOYER FIRM REPORT Despite the significance of small businesses to the U.S. economy and to local communities, information on small business financing conditions is limited, leaving important knowledge gaps for policymakers and service providers. Although several sources report aggregate lending volumes and lender perceptions,1 timely data about business owners’ financing 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 businesses in 26 states. Responses from the sample’s 3,459 employer firms are featured in this report.2,3 The SBCS offers insight on business conditions and the credit environment from the perspective of small business owners. This report sheds additional light on three subsegments of the small business population— startups, microbusinesses, and growing firms4—each of which affects employment and growth in local and regional economies. Overall, the 2015 survey finds that for employer firms: FINANCING SUCCESS IMPROVED IN 2015 Both firm performance and financing success rates improved year over year. Still, half of applicant firms reported financing shortfalls between Q3 2014 and Q3 2015, meaning they were approved for less than the amount requested. Microbusinesses and startups had the largest unmet financing needs with 63% and 58%, respectively, reporting a financing shortfall. SMALL BANKS ARE THE CHOICE LENDER Traditional bank lending continues to be the primary source of financing for small businesses. Credit applicants were most successful and most satisfied 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 satisfied with their overall experience) of 75 among approved firms compared to a score of 51 for large banks. ONLINE LENDERS ARE POPULAR— BUT HAVE LOWEST BORROWER SATISFACTION LEVELS Overall, 20% of employer firms applied at an online lender.5 While the approval rate was relatively high for applicants (71% were approved for at least some credit), approved firms were not very satisfied with their experience. The satisfaction score was just 15—far below that of small and large banks. Dissatisfied firms reported concerns with high interest rates and unfavorable repayment terms. More detailed findings on employer firms from the 2015 survey include: a. Cash flow is a common challenge for small firms. 22% of employer firms 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 firms. 24% say that finding/retaining qualified 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 firms pledged personal assets or guarantee to secure debt. Use of personal assets as collateral is very common, even among larger and more mature firms. 58% of employer firms with more than $10 million in revenues and 63% of firms that started 11 or more years ago used personal assets or guarantees to secure their financing. 1 See Office 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 Officer Opinion Survey on Bank Lending Practices." 2 Employer firms 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 defined as firms 0-2 years of age. Microbusinesses are those with less than $100K in annual revenue. Growing firms 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 | REPORT ON EMPLOYER FIRMS iii EXECUTIVE SUMMARY (CONTINUED) c. 47% of firms applied for credit in the past 12 months6 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 firms (0–5 years of age), growing, and higher revenue firms. Among non-applicants, nearly half indicated they have sufficient financing. Debt aversion is fairly common—25% of non-applicants said they didn’t want to take on debt, including 20% of nonapplicant growing firms. 16% of all non-applicants reported being discouraged, meaning they did not apply for financing because they believed they would be turned down. d. 50% of applicant firms received all of the credit they sought. A larger share of applicants reported profitability 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 financing they applied for, while 18% of applicants were not approved for any financing. 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 advice. 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 firms with more than $10 million in annual revenues. The majority of applicant firms sought traditional loans or lines of credit from banks, but 30% of microbusiness applicants and 22% of small firms applicants ($100K–$1M in annual revenues) applied to an online lender. Firms unable to obtain traditional bank financing were more likely to apply for credit cards and for financing at online lenders. Only 38% were able to secure financing elsewhere and most of those were approved for only some of the financing requested. f. 50% of applicants had a financing shortfall, securing less than the full amount requested. Growing firms reported insufficient credit history and collateral as the main reasons they were approved for less than the amount requested. 32% of growing firms reported that they had to delay expansion as a result of their financing shortfall. 21% said they used personal funds to finance their business. g. Satisfaction levels are highest for applicants at small banks and lowest at online lenders. Successful applicants at small banks were the most satisfied 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 firms dissatisfied with their experience pointed to a lack of transparency. ABOUT THE SURVEY The Small Business Credit Survey (SBCS) is a survey of firms, collecting information about business performance, financing needs and choices, and borrowing experiences of firms 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 businesses. 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. Startups approved for less than the full amount of requested financing used personal funds to cover their financing shortfall or were unable to meet their expenses. 6 Respondents were asked about application experiences during the Q3 2014 to Q3 2015 time frame. 2015 SMALL BUSINESS CREDIT SURVEY | REPORT ON EMPLOYER FIRMS iv DEMOGRAPHICS NUMBER OF EMPLOYEES (% of employer firms) STATE DISTRIBUTION N=3459 (% of employer firms) NY FL 74% MA NC GA OH PA AR TN AL CT IL IN NJ KS MS MO 21% SC VA KY LA ME 5% 1–9 10–49 MD CA 50+ CO EMPLOYEES INDUSTRY DISTRIBUTION TX 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% (% of employer firms) 9.2% N=3459 11.8% 11.5% 11% N=3459 Professional services and real estate 19% Non-manufacturing goods production and associated services 18% Business support and consumer services 15% Retail 14% Healthcare and education 13% Leisure and hospitality 11% Finance and insurance Manufacturing 6% 4% 2015 SMALL BUSINESS CREDIT SURVEY | REPORT ON EMPLOYER FIRMS 1 DEMOGRAPHICS (CONTINUED) 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 firms) N=3459 REVENUE SIZE OF FIRM 14% 20% 0–2 3–5 6–10 21% 11+ N=3297 49% 45% 21% (% of employer firms) <$100K $100K–$1M 25% 5% $1M–$10M >$10M YEARS Microbusinesses Microbusinesses create jobs for their owners and others— often workers disadvantaged in the broader labor market.2,3 Startups New and young firms are the economy’s primary job creator.1 GROWING FIRMS (% of employer firms) N=3296 Defined as: 71% Not growing Firm Growth 29% Growing Increased revenues4 Increased employees4 P lan to increase or maintain number of employees5 Growing Firms Growing small businesses are important engines of dynamism in local economies—adding jobs and spurring innovation.6 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 defined as firms with <$100K in annual revenues. In the 2014 report, the definition included firms 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. 2015 SMALL BUSINESS CREDIT SURVEY | REPORT ON EMPLOYER FIRMS 2 PERFORMANCE In 2015, small businesses reported positive financial performance on a number of indicators, including revenue growth, profitability, and job growth. EMPLOYER FIRM PERFORMANCE INDEX, 1 2014 Survey and 2015 Survey (% of employer firms) Limited to states surveyed in both years 27% 26% 21% 15% 14% Profitability 2014 (N=1379) Revenue growth N=3354 At a profit 55% (% of employer firms) At a loss Employment growth 2015 (N=2078) PROFITABILITY, End of 2014 Break even 15% REVENUE CHANGE, Past 12 Months2 N=3375 Increased 54% (% of employer firms) 21% 24% No change Decreased 22% 24% The Startup Struggle 52% of startups (0–2 years) reported operating at a loss compared with only 15% of firms over 10 years old. 1 For revenue and employment growth, the index is the share reporting positive growth minus the share reporting negative growth. For profitability, it’s the share profitable minus the share not profitable. 2 Approximately Q3 2014 through Q3 2015. 2015 SMALL BUSINESS CREDIT SURVEY | REPORT ON EMPLOYER FIRMS 3 EMPLOYMENT 74% of employer firms reported having less than 10 employees. 45% of employer firms plan to add jobs in the next 12 months. CHANGE IN EMPLOYMENT (% of employer firms) N=3386 Will decrease N=3396 7% 14% Decreased 34% Increased Next 12 Months2 Past 12 Months1 45% Will increase 48% No change 51% No change Small businesses are using contractors. 34% 3 of employer firms use contract workers. median number of contractors per employer firm. 1 Approximately Q3 2014 through Q3 2015. 2 Expected change, Q3 2015 through Q3 2016. 2015 SMALL BUSINESS CREDIT SURVEY | REPORT ON EMPLOYER FIRMS 4 BUSINESS CHALLENGES TOP BUSINESS CHALLENGE BY TYPE OF FIRM, Past 12 Months1 In order of importance (% of employer firms) All firms Growing2 Startup (0–2 years) Micro (<$100K) Cash flow 22% 24% 25% 26% Costs of running business 19% 23% 23% 22% Hiring and/or retaining qualified staff 17% 16% 15% 16% Revenues/sales 13% 12% 13% 13% Government regulations 10% 9% 10% 9% Taxes 9% 8% 9% 7% Credit availability 9% 6% 4% 4% Other3 2% 3% 2% 3% N=2940 N=803 N=280 N=316 24% of growing employer firms reported that hiring and/or retaining staff is their top challenge to doing business. 1 A pproximately Q3 2014 through Q3 2015. 2 Growing firms are defined 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 benefits, business climate, and market competition. Note: Because of rounding, percentages sum to >100%. 2015 SMALL BUSINESS CREDIT SURVEY | REPORT ON EMPLOYER FIRMS 5 FINANCING AND DEBT 63% of employer firms have outstanding debt. AMOUNT OF DEBT, At Time of Survey (% of employer firms with debt) N=2154 54% hold less than $100K 27% 13% 14% $10K–$25K $25K–$50K 18% 19% $50K–$100K $100K–$250K 9% $1–$10K >$250K Securing debt with personal assets is common, even among higher revenue firms. COLLATERAL USED 1 TO SECURE DEBT BY REVENUE SIZE OF FIRM (% of employer firms with debt) 75% 74% 68% 63% 62% 58% 55% 51% 46% 26% 30% 16% 16% 9% All firms N=2250 Micro (<$100K) Personal assets or guarantee N=187 Business assets $100K–$1M N=906 $1M–$10M N=843 9% >$10M N=239 Unsecured 1 Select answer choices shown. See appendix for more detail. Respondents could select multiple options. 2015 SMALL BUSINESS CREDIT SURVEY | REPORT ON EMPLOYER FIRMS 6 DEMAND FOR FINANCING 47% of employer firms applied for financing. DEMAND FOR FINANCING N=3454 (% of employer firms) REASON(S) FOR APPLYING 2 N=1671 (% of applicants) 61% Expand business/ new opportunity 47% Past Applied 12 Months1 53% 37% Operating expenses Didn't Apply 24% Refinance 15% Other 61% of applicants were borrowing to expand their business or pursue a new opportunity. DEMAND FOR FINANCING BY TYPE OF FIRM 70% 63% Application rate 47% Reason(s) for applying 61% 55% 62% 53% 53% 45% 37% All firms N=3454 Application rate (% of employer firms) 40% 31% Growing3 N=949 Startup (0–2 years) N=326 Expand business/new opportunity (% of applicants) Micro (<$100K) N=391 Operating expenses (% of applicants) 1 Approximately Q3 2014 through Q3 2015. 2 Respondents could select multiple answers. 3 Growing firms are defined 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. 2015 SMALL BUSINESS CREDIT SURVEY | REPORT ON EMPLOYER FIRMS 7 NON-APPLICANTS 53% of employer firms did not apply for financing. DEMAND FOR FINANCING N=3454 PRIMARY REASON FOR NOT APPLYING N=1763 (% of non-applicants) (% of employer firms) 49% Sufficient financing 47% Past Applied 12 Months1 53% Didn't Apply 25% Debt averse 16% Discouraged 3% S earch too difficult 3% C redit cost high 5% Other 25% of non-applicants did not apply because they were averse to taking on debt. DISCOURAGED AND DEBT AVERSE BY TYPE OF FIRM (% of non-applicants) 35% 28% 25% 17% 16% All firms Growing2 N=1763 Discouraged3 20% N=401 32% 25% Startup (0–2 years) N=152 Micro (<$100K) N=238 Debt averse Microbusinesses are less likely to seek financing, and more likely to be discouraged and debt averse. 1 Approximately Q3 2014 through Q3 2015. 2 Growing firms are defined 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 firms are those that did not apply for financing because they believed they would be turned down. 2015 SMALL BUSINESS CREDIT SURVEY | REPORT ON EMPLOYER FIRMS 8 FINANCING SEARCH 73% of applicants asked lenders for financing advice. TOP SOURCE(S) 1 OF FINANCING ADVICE (% of applicants) N=1762 73% Banker or lender Accountant, consultant, or business advisor 40% Small Business Development Center (SBDC) 29% Friends, family, or colleagues 25% 15% Loan broker 9% None Chamber of commerce or industry association Microbusinesses (<$100K) are more likely to seek advice from multiple sources, including SBDCs and loan brokers.2 8% Loans and lines of credit are the most sought-after financing products. FINANCING AND CREDIT PRODUCTS 1 SOUGHT (% of applicants) 89% Loan/line of credit 30% Credit cards Leasing 11% Trade credit 9% Equity investment 4% Factoring Other N=1671 3% 4% 1 Select answer choices shown. See appendix for more detail. Respondents could select multiple options. 2 44% (SBDCs) and 22% (loan brokers) 2015 SMALL BUSINESS CREDIT SURVEY | REPORT ON EMPLOYER FIRMS 9 CREDIT APPLICATIONS APPLICATIONS 1 FOR LOANS AND LINES OF CREDIT BY TYPE OF FIRM (% of loan/line of credit applicants) Line of credit Business loan SBA loan/line of credit Commerical mortgage Merchant cash advance 57% 52% All firms 21% N=1497 10% 7% 60% 49% Growing2 27% N=490 11% 6% 53% 58% Startup (0–2 years) N=145 37% 9% 9% 47% 63% Micro (<$100K) N=127 36% 6% 10% Microbusinesses and startups are more likely to apply for SBA-backed loans or lines of credit and merchant cash advances than larger revenue firms. 1 Select answer choices shown. See appendix for more detail. Respondents could select multiple options. 2 Growing firms are defined 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. 2015 SMALL BUSINESS CREDIT SURVEY | REPORT ON EMPLOYER FIRMS 10 CREDIT SOURCES Employer firms primarily base their application decisions on relationships with lenders and the price of credit. TOP TWO FACTORS 1 INFLUENCING WHERE FIRMS APPLY Micro (<$100K) $100K–$1M N=148 $1M–S10M N=635 >$10M N=629 N=195 1 2 Price Microbusinesses are more likely to make application decisions based on perceived chance of funding. Existing relationship with lender Perceived chance of being funded Banks are the dominant credit source overall but online lending is a noteworthy source for employer firms with less than $1 million in revenues. CREDIT SOURCES 1 APPLIED TO BY REVENUE SIZE OF FIRM All firms N=1487 >$10M N=181 53% 6% 1% $1M–$10M N=564 4% $100K–$1M N=564 Micro (<$100K) N=126 1 2 14% 52% 39% 22% 9% 30% 41% 58% 59% 45% 11% Small bank Large bank Online lender2 Credit union 52% 42% 20% 9% (% of loan/line of credit applicants) 44% elect answer choices shown. See appendix for more detail. Respondents could select multiple options. S "Online lenders" are defined as nonbank alternative and marketplace lenders, including Lending Club, OnDeck, CAN Capital, and PayPal Working Capital. 2015 SMALL BUSINESS CREDIT SURVEY | REPORT ON EMPLOYER FIRMS 11 CREDIT OUTCOMES 79% of employer firms that applied for a loan or line of credit were approved for at least SOME financing. APPROVAL RATE BY LOAN OR LINE OF CREDIT PRODUCT (% applicants receiving at least some credit) Auto or equipment loan 89% N=61 Mortgage 73% N=178 Line of credit 71% N=869 Cash advance 71% N=68 Business loan 69% N=702 SBA loan/line of credit 59% N=216 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 Type Source (% applicants receiving at least some credit) TOP PERCENTILE MIDDLE PERCENTILE BOTTOM PERCENTILE All Firms Micro (<$100K) $100K–$1M $1M–$10M >$10M Large bank 58% 33% 49% 72% 88% Small bank 76% 60% 69% 88% 96% Business loan 69% 54% 65% 81% 92% Line of credit 71% 55% 65% 82% 91% Microbusinesses and firms with $100K–$1M in revenue had much greater difficulty obtaining credit than larger firms. 1 2 elect answer choices shown. See appendix for more detail. Respondents could select multiple options. S The observation count ranges from 48 to 869, depending on the source and type of financing. 2015 SMALL BUSINESS CREDIT SURVEY | REPORT ON EMPLOYER FIRMS 12 FINANCING APPROVAL 50% of applicants were approved for the full amount of financing. TOTAL FINANCING APPROVED, 2015 Survey (% of applicants)1 2015 50% N=1580 All Most (>=50%) Some (<50%) 14% 18% 18% None APPROVAL RATE BY FINANCIAL PRODUCT, 2015 Survey (% of applicants approved for at least some financing) Leasing 89% N=209 Trade credit 84% N=159 Credit card 80% N=373 Loan or line of credit 79% N=1428 Equity 74% N=68 Survey responses show greater success in 2015 than in 2014. TOTAL FINANCING APPROVED, 2015 Survey versus 2014 Survey (% of applicants)1 Limited to states surveyed in both years 2015 45% N=997 2014 38% N=574 All Most (>=50%) Some (<50%) 17% 13% 14% 19% 20% 35% None 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 first half of the year. In 2015, the time period was the previous twelve months. 2015 SMALL BUSINESS CREDIT SURVEY | REPORT ON EMPLOYER FIRMS 13 LENDER SATISFACTION Applicants that were approved for financing from small banks reported the highest satisfaction. LENDER SATISFACTION SCORE 1 (% of firms approved at source) Small bank 75% N=619 Credit union 56% N=46 Large bank 51% N=424 Online lender2 N=140 15% Other3 33% N=117 Dissatisfied firms reported issues with banks’ application processes and online lenders’ interest rates. SUCCESSFUL APPLICANTS' REASON(S) FOR DISSATISFACTION, 4 Select Lenders5 (% of employer firms dissatisfied with lender) O nline lender 32% Lack of transparency N=67 22% S mall bank 33% N=119 22% Long wait for credit decision Large bank 43% N=217 45% 21% Difficult application process 52% 51% 51% Unfavorable repayment terms 15% High interest rate 15% 16% 70% 1 2 3 4 5 18% Satisfaction score is the share satisfied with lender minus the share dissatisfied. "Online lenders" are defined as alternative and marketplace lenders, including Lending Club, OnDeck, CAN Capital, and PayPal Working Capital. "Other" includes government loan funds and community development financial institutions. Respondents could select multiple options. Select answer choices shown due to low observation count. 2015 SMALL BUSINESS CREDIT SURVEY | REPORT ON EMPLOYER FIRMS 14 FINANCING SHORTFALLS 50% of applicants had a financing shortfall, meaning they received less financing than the amount sought. APPLICATION OUTCOMES BY SIZE OF FIRM (% of applicants) All firms 50% 50% >$10M 27% 73% $1M–$10M 37% 63% $100K–$1M 55% 45% Micro (<$100K) 63% 37% N=1580 N=191 N=601 N=595 N=137 Financing shortfall Fully funded Microbusinesses had the largest unmet need. 2015 SMALL BUSINESS CREDIT SURVEY | REPORT ON EMPLOYER FIRMS 15 FINANCING SHORTFALLS (CONTINUED) Insufficient collateral is the top barrier to obtaining financing. TOP TWO REASONS 1 FOR DENIAL AND TOP TWO 1 EFFECTS OF DENIAL Top reasons for credit denial Reported impact on business 1 Insufficient collateral Unable to meet expenses 2 Weak business performance Delayed expansion 1 Insufficient credit history Delayed expansion 2 Insufficient collateral Used personal funds 1 Insufficient credit history Used personal funds 2 Other3 Unable to meet expenses 1 Insufficient credit history Unable to meet expenses 2 Insufficient collateral Delayed expansion All firms (N=445) Growing 2 (N=141) Startup (0–2 years) (N=62) Micro (<$100K) (N=48) 1 2 3 Select answer choices shown. See appendix for more detail. Respondents could select multiple options. Growing firms are defined 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. "Other” includes owner’s personal credit worthiness and length of time in operation. 2015 SMALL BUSINESS CREDIT SURVEY | REPORT ON EMPLOYER FIRMS 16 METHODOLOGY OVERVIEW DATA COLLECTION COMPARISONS TO 2014 REPORT The Small Business Credit Survey (SBCS) is a convenience survey conducted by the Federal Reserve Banks of New York, Atlanta, Boston, Cleveland, Philadelphia, Richmond, and St. Louis. The SBCS reports information about the business performance, financing needs and choices, and borrowing experiences of businesses with fewer than 500 employees. The SBCS is a convenience survey of establishments. Businesses are contacted by email through organizations that serve the small business community in participating Federal Reserve Districts. The survey is conducted online and typically takes 6 to 12 minutes to complete, depending upon the intensity of a firm’s search for financing. Likewise, the number of responses for each question varies according to how many firms received and completed a particular question. In last year’s report (https://www.newyorkfed.org/smallbusiness/joint-smallbusiness-credit-survey-2014.html) both employer and non-employer firms were included in the results. This year’s report features only employer firms. 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 employer firm data from 2014 and the 2015 data are restricted to include states that are present in both survey years, allowing for direct comparison. In total, 3,459 employer firms responded to the survey, which was fielded between September 28, 2015 and November 27, 2015. 1,961 responses from nonemployers were also captured, but are not featured in this report. A separate non-employer report reporting on issues specific 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 coverage1 along the dimensions of industry, age, and employee size. WEIGHTING The SBCS is not a random sample of small employer firms, and therefore suffers from a greater set of biases than surveys that contact firms randomly. We attempt to correct for biases resulting from the convenience sample by weighting the results by industry, age, and employee size so that the distribution of firms in the survey match the distribution of the small (1 to 500 employees) firm 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 1 See Demographics section for a complete list. 2 Age of firm data come from Business Dynamics Statistics. Industry and employee size data are from County Business Patterns. 2015 SMALL BUSINESS CREDIT SURVEY | REPORT ON EMPLOYER FIRMS 17 APPENDIX A. BUSINESS CONDITIONS All Employer Firms Growth Stage Weighted percent Not growing Growing N=3459 N=2347 N=949 24% 21% 55% 24% 24% 52% 22% 15% 63% 24% 22% 54% 33% 31% 36% 0% 0% 100% 14% 51% 34% 20% 72% 8% 0% 0% 100% 9% 19% 72% 13% 24% 64% 1% 7% 93% 7% 48% 45% 9% 56% 35% 0% 29% 71% 10% 9% 9% 22% 19% 13% 17% 2% 10% 10% 8% 21% 19% 15% 15% 2% 9% 8% 12% 23% 16% 6% 24% 3% PROFITABILITY, END OF 2014 At a loss Break even At a profit REVENUE CHANGE, PAST 12 MONTHS Decreased No change Increased EMPLOYEE CHANGE, PAST 12 MONTHS Decreased No change Increased EXPECTED REVENUE CHANGE, NEXT 12 MONTHS Will decrease No change Will increase EXPECTED EMPLOYEE CHANGE, NEXT 12 MONTHS Will decrease No change Will increase TOP BUSINESS CHALLENGE Government regulations Taxes Credit availability Cash flow Costs of running business Revenues/sales Hiring and/or retaining qualified staff Other Data with fewer than 45 observations are not shown. 2015 SMALL BUSINESS CREDIT SURVEY | REPORT ON EMPLOYER FIRMS 18 APPENDIX (CONTINUED) A. BUSINESS CONDITIONS (CONTINUED) Firm Age 0–2 years 3–5 years 6–10 years 11+ years N=326 N=353 N=517 N=2263 52% 18% 30% 28% 25% 47% 17% 21% 62% 15% 22% 64% 12% 22% 66% 18% 19% 63% 25% 17% 58% 30% 25% 45% 10% 44% 46% 14% 44% 42% 13% 49% 38% 17% 58% 25% 4% 8% 88% 5% 10% 86% 8% 17% 76% 13% 29% 58% 3% 35% 62% 3% 39% 58% 6% 45% 49% 9% 58% 32% 4% 9% 13% 25% 23% 10% 15% 2% 8% 7% 18% 30% 12% 10% 13% 2% 7% 10% 7% 23% 15% 14% 20% 3% 14% 10% 5% 17% 20% 14% 19% 2% PROFITABILITY, END OF 2014 At a loss Break even At a profit REVENUE CHANGE, PAST 12 MONTHS Decreased No change Increased EMPLOYEE CHANGE, PAST 12 MONTHS Decreased No change Increased EXPECTED REVENUE CHANGE, NEXT 12 MONTHS Will decrease No change Will increase EXPECTED EMPLOYEE CHANGE, NEXT 12 MONTHS Will decrease No change Will increase TOP BUSINESS CHALLENGE Government regulations Taxes Credit availability Cash flow Costs of running business Revenues/sales Hiring and/or retaining qualified staff Other Data with fewer than 45 observations are not shown. 2015 SMALL BUSINESS CREDIT SURVEY | REPORT ON EMPLOYER FIRMS 19 APPENDIX (CONTINUED) A. BUSINESS CONDITIONS (CONTINUED) Number of Employees 1–9 employees 10–49 employees 50+ employees N=1838 N=1250 N=371 26% 23% 51% 19% 19% 63% 8% 11% 81% 24% 24% 52% 24% 18% 58% 20% 11% 69% 13% 57% 30% 18% 39% 44% 16% 25% 59% 9% 19% 72% 9% 20% 72% 12% 16% 72% 6% 51% 43% 8% 41% 51% 12% 32% 56% 8% 10% 9% 25% 20% 13% 14% 2% 11% 9% 8% 17% 16% 13% 25% 2% 25% 5% 5% 8% 14% 10% 32% 2% PROFITABILITY, END OF 2014 At a loss Break even At a profit REVENUE CHANGE, PAST 12 MONTHS Decreased No change Increased EMPLOYEE CHANGE, PAST 12 MONTHS Decreased No change Increased EXPECTED REVENUE CHANGE, NEXT 12 MONTHS Will decrease No change Will increase EXPECTED EMPLOYEE CHANGE, NEXT 12 MONTHS Will decrease No change Will increase TOP BUSINESS CHALLENGE Government regulations Taxes Credit availability Cash flow Costs of running business Revenues/sales Hiring and/or retaining qualified staff Other Data with fewer than 45 observations are not shown. 2015 SMALL BUSINESS CREDIT SURVEY | REPORT ON EMPLOYER FIRMS 20 APPENDIX (CONTINUED) A. BUSINESS CONDITIONS (CONTINUED) Annual Revenues <$100K $100K–$1M $1M–$10M >$10M N=391 N=1368 N=1198 N=340 47% 26% 26% 22% 23% 55% 12% 17% 71% 11% 10% 79% 19% 23% 58% 26% 21% 53% 27% 21% 53% 22% 19% 59% 11% 50% 38% 15% 56% 30% 17% 46% 37% 17% 33% 50% 6% 11% 83% 9% 22% 69% 12% 22% 66% 11% 23% 66% 5% 40% 56% 6% 52% 42% 9% 48% 43% 9% 41% 49% 4% 7% 13% 26% 22% 16% 9% 3% 8% 11% 9% 26% 17% 11% 16% 2% 15% 9% 7% 16% 17% 13% 24% 1% 22% 7% 5% 6% 19% 13% 27% 2% PROFITABILITY, END OF 2014 At a loss Break even At a profit REVENUE CHANGE, PAST 12 MONTHS Decreased No change Increased EMPLOYEE CHANGE, PAST 12 MONTHS Decreased No change Increased EXPECTED REVENUE CHANGE, NEXT 12 MONTHS Will decrease No change Will increase EXPECTED EMPLOYEE CHANGE, NEXT 12 MONTHS Will decrease No change Will increase TOP BUSINESS CHALLENGE Government regulations Taxes Credit availability Cash flow Costs of running business Revenues/sales Hiring and/or retaining qualified staff Other Data with fewer than 45 observations are not shown. 2015 SMALL BUSINESS CREDIT SURVEY | REPORT ON EMPLOYER FIRMS 21 APPENDIX (CONTINUED) A. BUSINESS CONDITIONS (CONTINUED) 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 Industry N= 689 N= 581 N= 502 N= 281 N= 114 N= 244 N= 705 N= 343 20% 22% 57% 26% 18% 57% 28% 24% 48% 37% 23% 40% 10% 14% 76% 28% 20% 52% 19% 20% 62% 23% 24% 53% 28% 22% 50% 32% 21% 47% 31% 26% 43% 22% 17% 62% 17% 31% 52% 21% 17% 62% 20% 21% 59% 21% 22% 58% 14% 52% 34% 18% 46% 35% 16% 61% 23% 18% 50% 32% 11% 62% 27% 14% 42% 44% 13% 48% 39% 14% 51% 36% 11% 21% 68% 12% 22% 66% 12% 24% 64% 6% 15% 79% 13% 21% 66% 5% 14% 81% 9% 18% 74% 8% 20% 72% 7% 47% 45% 9% 47% 44% 9% 61% 31% 6% 46% 48% 7% 62% 31% 4% 42% 53% 6% 44% 50% 6% 42% 52% 11% 9% 12% 23% 17% 10% 17% 2% 7% 10% 7% 22% 13% 24% 13% 4% 4% 12% 7% 26% 21% 17% 13% 1% 8% 8% 13% 18% 24% 10% 14% 5% 25% 11% 2% 12% 15% 13% 22% 0% 14% 6% 11% 26% 19% 9% 12% 2% 10% 8% 8% 20% 14% 17% 20% 3% 7% 11% 7% 21% 21% 8% 25% 1% PROFITABILITY, END OF 2014 At a loss Break even At a profit REVENUE CHANGE, PAST 12 MONTHS Decreased No change Increased EMPLOYEE CHANGE, PAST 12 MONTHS Decreased No change Increased EXPECTED REVENUE CHANGE, NEXT 12 MONTHS Will decrease No change Will increase EXPECTED EMPLOYEE CHANGE, NEXT 12 MONTHS Will decrease No change Will increase TOP BUSINESS CHALLENGE Government regulations Taxes Credit availability Cash flow Costs of running business Revenues/sales Hiring and/or retaining qualified staff Other Data with fewer than 45 observations are not shown. 2015 SMALL BUSINESS CREDIT SURVEY | REPORT ON EMPLOYER FIRMS 22 APPENDIX (CONTINUED) B. OUTSTANDING DEBT AND STARTUP FUNDING All Employer Firms Growth Stage Weighted percent Not growing Growing 63% 61% 65% 9% 13% 14% 18% 19% 11% 7% 4% 5% 10% 13% 15% 18% 19% 10% 7% 5% 4% 8% 13% 13% 18% 21% 10% 8% 4% 5% 63% 51% 8% 1% 16% 5% 62% 51% 8% 1% 16% 4% 68% 49% 7% 1% 16% 6% 30% 53% 17% 31% 52% 17% 29% 56% 15% Share with outstanding debt AMOUNT OF OUTSTANDING DEBT Less than $10K $10K–$25K $25K–$50K $50K–$100K $100K–$250K $250K–$500K $500K–$1M $1M–$2M Over $2M COLLATERAL USED TO SECURE DEBT Personal assets or guarantee Business assets Portions of future sales Unsure None Other FUNDING USED DURING FIRST TWO YEARS OF OPERATIONS Retained business earnings Personal funds of owner(s) External financing Data with fewer than 45 observations are not shown. 2015 SMALL BUSINESS CREDIT SURVEY | REPORT ON EMPLOYER FIRMS 23 APPENDIX (CONTINUED) B. OUTSTANDING DEBT AND STARTUP FUNDING (CONTINUED) Firm Age Share with outstanding debt 0–2 years 3–5 years 6–10 years 11+ years 61% 67% 61% 63% 14% 19% 12% 17% 20% 9% 6% 2% 1% 13% 16% 17% 21% 17% 8% 2% 4% 4% 8% 14% 17% 15% 22% 11% 6% 4% 1% 5% 9% 13% 19% 18% 13% 10% 6% 8% 64% 42% 9% 1% 16% 6% 60% 34% 7% 0% 24% 5% 67% 48% 10% 2% 16% 4% 63% 61% 6% 1% 13% 4% 31% 55% 14% 37% 50% 14% 32% 53% 15% 27% 53% 20% AMOUNT OF OUTSTANDING DEBT Less than $10K $10K–$25K $25K–$50K $50K–$100K $100K–$250K $250K–$500K $500K–$1M $1M–$2M Over $2M COLLATERAL USED TO SECURE DEBT Personal assets or guarantee Business assets Portions of future sales Unsure None Other FUNDING USED DURING FIRST TWO YEARS OF OPERATIONS Retained business earnings Personal funds of owner(s) External financing Data with fewer than 45 observations are not shown. 2015 SMALL BUSINESS CREDIT SURVEY | REPORT ON EMPLOYER FIRMS 24 APPENDIX (CONTINUED) B. OUTSTANDING DEBT AND STARTUP FUNDING (CONTINUED) Number of Employees 1–9 employees 10–49 employees 50+ employees 60% 70% 75% 12% 16% 18% 21% 18% 9% 4% 1% 1% 3% 6% 7% 13% 23% 18% 13% 9% 8% 2% 3% 2% 5% 12% 11% 14% 17% 35% 60% 44% 8% 1% 19% 5% 73% 65% 8% 1% 10% 4% 65% 77% 8% 1% 6% 5% 32% 53% 15% 27% 52% 21% 23% 53% 24% Share with outstanding debt AMOUNT OF OUTSTANDING DEBT Less than $10K $10K–$25K $25K–$50K $50K–$100K $100K–$250K $250K–$500K $500K–$1M $1M–$2M Over $2M COLLATERAL USED TO SECURE DEBT Personal assets or guarantee Business assets Portions of future sales Unsure None Other FUNDING USED DURING FIRST TWO YEARS OF OPERATIONS Retained business earnings Personal funds of owner(s) External financing Data with fewer than 45 observations are not shown. 2015 SMALL BUSINESS CREDIT SURVEY | REPORT ON EMPLOYER FIRMS 25 APPENDIX (CONTINUED) B. OUTSTANDING DEBT AND STARTUP FUNDING (CONTINUED) Annual Revenues Share with outstanding debt <$100K $100K–$1M $1M–$10M >$10M 50% 66% 68% 70% 23% 24% 18% 13% 16% 3% 1% 1% 1% 8% 15% 19% 23% 21% 8% 5% 2% 1% 2% 4% 5% 16% 21% 21% 15% 9% 7% 6% 4% 5% 3% 11% 8% 11% 15% 38% 55% 26% 6% 3% 30% 7% 62% 46% 8% 1% 16% 4% 74% 68% 7% 1% 9% 6% 58% 75% 9% 0% 9% 2% 30% 60% 10% 33% 51% 17% 29% 50% 21% 23% 48% 29% AMOUNT OF OUTSTANDING DEBT Less than $10K $10K–$25K $25K–$50K $50K–$100K $100K–$250K $250K–$500K $500K–$1M $1M–$2M Over $2M COLLATERAL USED TO SECURE DEBT Personal assets or guarantee Business assets Portions of future sales Unsure None Other FUNDING USED DURING FIRST TWO YEARS OF OPERATIONS Retained business earnings Personal funds of owner(s) External financing Data with fewer than 45 observations are not shown. 2015 SMALL BUSINESS CREDIT SURVEY | REPORT ON EMPLOYER FIRMS 26 APPENDIX (CONTINUED) B. OUTSTANDING DEBT AND STARTUP FUNDING (CONTINUED) 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 Non-manufacturing goods production & associated services Industry 64% 73% 71% 69% 43% 63% 55% 63% 4% 11% 13% 21% 19% 12% 9% 5% 6% 3% 5% 9% 10% 23% 16% 14% 10% 11% 5% 12% 14% 21% 23% 12% 7% 2% 4% 6% 14% 17% 16% 16% 12% 9% 6% 5% – – – – – – – – – 13% 17% 10% 18% 17% 11% 4% 6% 4% 12% 15% 14% 15% 19% 10% 6% 4% 5% 16% 11% 20% 17% 18% 9% 6% 2% 1% 65% 54% 10% 2% 12% 5% 66% 72% 6% 1% 9% 6% 68% 52% 8% 0% 15% 3% 66% 52% 8% 1% 14% 7% 55% 52% 8% 0% 19% 2% 56% 46% 6% 4% 23% 5% 64% 46% 7% 1% 18% 4% 61% 47% 7% 0% 16% 5% 26% 56% 19% 20% 59% 21% 32% 47% 21% 30% 53% 17% 31% 50% 19% 30% 53% 17% 33% 54% 13% 32% 53% 15% AMOUNT OF OUTSTANDING DEBT Less than $10K $10K–$25K $25K–$50K $50K–$100K $100K–$250K $250K–$500K $500K–$1M $1M–$2M Over $2M COLLATERAL USED TO SECURE DEBT Personal assets or guarantee Business assets Portions of future sales Unsure None Other FUNDING USED DURING FIRST TWO YEARS OF OPERATIONS Retained business earnings Personal funds of owner(s) External financing Data with fewer than 45 observations are not shown. 2015 SMALL BUSINESS CREDIT SURVEY | REPORT ON EMPLOYER FIRMS 27 APPENDIX (CONTINUED) C. NON-APPLICANTS All Employer Firms Growth Stage Weighted percent Not growing Growing 49% 16% 25% 3% 3% 5% 47% 16% 27% 2% 3% 5% 54% 17% 20% 2% 2% 5% 28% 2% 24% 15% 5% 14% 2% 50% 3% 26% 2% 22% 14% 4% 12% 2% 53% 3% 32% 4% 28% 18% 5% 22% 2% 45% 3% PRIMARY REASON FOR NOT APPLYING, NON-APPLICANTS Sufficient financing Discouraged Debt averse Credit cost high Search too difficult Other SOURCE(S) OF FINANCING ADVICE, NON-APPLICANTS Accountant, consultant, or business advisor Loan broker Banker or lender Friends, family, or colleagues Chamber of commerce or industry association SBDC (Small Business Development Center) Other source of advice None SCORE (Service Corps of Retired Executives) Data with fewer than 45 observations are not shown. 2015 SMALL BUSINESS CREDIT SURVEY | REPORT ON EMPLOYER FIRMS 28 APPENDIX (CONTINUED) C. NON-APPLICANTS (CONTINUED) Firm Age 0–2 years 3–5 years 6–10 years 11+ years 35% 28% 25% 2% 4% 7% 37% 20% 31% 5% 4% 4% 46% 22% 26% 2% 2% 3% 58% 9% 24% 2% 2% 6% 28% 3% 22% 24% 5% 29% 1% 36% 5% 35% 1% 20% 25% 8% 21% 3% 43% 6% 27% 4% 26% 18% 7% 14% 3% 50% 1% 26% 2% 24% 8% 3% 7% 2% 58% 1% PRIMARY REASON FOR NOT APPLYING, NON-APPLICANTS Sufficient financing Discouraged Debt averse Credit cost high Search too difficult Other SOURCE(S) OF FINANCING ADVICE, NON-APPLICANTS Accountant, consultant, or business advisor Loan broker Banker or lender Friends, family, or colleagues Chamber of commerce or industry association SBDC (Small Business Development Center) Other source of advice None SCORE (Service Corps of Retired Executives) Data with fewer than 45 observations are not shown. 2015 SMALL BUSINESS CREDIT SURVEY | REPORT ON EMPLOYER FIRMS 29 APPENDIX (CONTINUED) C. NON-APPLICANTS (CONTINUED) Number of Employees 1–9 employees 10–49 employees 50+ employees 45% 18% 27% 3% 3% 5% 57% 12% 21% 3% 2% 5% 78% 3% 14% 0% 2% 4% 27% 3% 21% 16% 5% 15% 2% 52% 3% 30% 2% 33% 13% 5% 11% 3% 45% 3% 29% 1% 34% 6% 3% 11% 1% 50% 0% PRIMARY REASON FOR NOT APPLYING, NON-APPLICANTS Sufficient financing Discouraged Debt averse Credit cost high Search too difficult Other SOURCE(S) OF FINANCING ADVICE, NON-APPLICANTS Accountant, consultant, or business advisor Loan broker Banker or lender Friends, family, or colleagues Chamber of commerce or industry association SBDC (Small Business Development Center) Other source of advice None SCORE (Service Corps of Retired Executives) Data with fewer than 45 observations are not shown. 2015 SMALL BUSINESS CREDIT SURVEY | REPORT ON EMPLOYER FIRMS 30 APPENDIX (CONTINUED) C. NON-APPLICANTS (CONTINUED) Annual Revenues <$100K $100K–$1M $1M–$10M >$10M 22% 35% 32% 3% 2% 6% 49% 14% 28% 3% 3% 4% 66% 8% 18% 2% 2% 5% 71% 11% 15% 0% 0% 4% 27% 4% 19% 25% 8% 26% 1% 44% 6% 25% 2% 22% 13% 4% 10% 2% 56% 2% 31% 1% 32% 10% 4% 10% 2% 48% 1% 31% 1% 34% 10% 5% 3% 2% 50% 0% PRIMARY REASON FOR NOT APPLYING, NON-APPLICANTS Sufficient financing Discouraged Debt averse Credit cost high Search too difficult Other SOURCE(S) OF FINANCING ADVICE, NON-APPLICANTS Accountant, consultant, or business advisor Loan broker Banker or lender Friends, family, or colleagues Chamber of commerce or industry association SBDC (Small Business Development Center) Other source of advice None SCORE (Service Corps of Retired Executives) Data with fewer than 45 observations are not shown. 2015 SMALL BUSINESS CREDIT SURVEY | REPORT ON EMPLOYER FIRMS 31 APPENDIX (CONTINUED) C. NON-APPLICANTS (CONTINUED) 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 Industry 50% 18% 23% 2% 3% 5% 45% 12% 30% 3% 3% 6% 41% 17% 33% 2% 2% 5% 43% 19% 24% 3% 4% 7% 67% 9% 16% 2% 0% 6% 52% 18% 22% 2% 1% 4% 50% 17% 26% 3% 1% 3% 45% 14% 26% 2% 7% 6% 25% 2% 30% 12% 4% 12% 2% 54% 1% 29% 1% 31% 12% 4% 11% 2% 48% 3% 32% 3% 22% 14% 3% 11% 2% 50% 2% 22% 4% 24% 21% 4% 28% 3% 45% 2% 27% 3% 20% 7% 5% 9% 1% 57% 3% 34% 2% 19% 23% 7% 19% 1% 44% 2% 29% 3% 25% 16% 5% 10% 3% 53% 3% 23% 1% 20% 14% 6% 16% 1% 51% 4% PRIMARY REASON FOR NOT APPLYING, NON-APPLICANTS Sufficient financing Discouraged Debt averse Credit cost high Search too difficult Other SOURCE(S) OF FINANCING ADVICE, NON-APPLICANTS Accountant, consultant, or business advisor Loan broker Banker or lender Friends, family, or colleagues Chamber of commerce or industry association SBDC (Small Business Development Center) Other source of advice None SCORE (Service Corps of Retired Executives) Data with fewer than 45 observations are not shown. 2015 SMALL BUSINESS CREDIT SURVEY | REPORT ON EMPLOYER FIRMS 32 APPENDIX (CONTINUED) D. DEMAND FOR FINANCING All Employer Firms Growth Stage Weighted percent Not growing Growing 47% 43% 55% 37% 24% 15% 61% 40% 27% 14% 56% 31% 18% 16% 70% 40% 15% 73% 25% 8% 29% 5% 9% 5% 39% 15% 73% 24% 8% 25% 4% 10% 6% 44% 17% 76% 26% 9% 36% 5% 6% 3% 55% 54% 37% 35% 37% 40% 4% 57% 54% 37% 34% 38% 38% 3% 51% 55% 37% 36% 38% 42% 5% Share that applied for financing REASON(S) FOR SEEKING FINANCING Operating expenses Refinance Other reason Expand business/new opportunity SOURCE(S) OF FINANCING ADVICE, APPLICANTS Accountant, consultant, or business advisor Loan broker Banker or lender Friends, family, or colleagues Chamber of commerce or industry association SBDC (Small Business Development Center) Other source of advice None SCORE (Service Corps of Retired Executives) FACTOR(S) INFLUENCING APPLICATION DECISION Existing relationship with lender Cost Flexibility of the credit product(s) Speed of the decision process Ease of the application process Perceived chance of being funded Other Data with fewer than 45 observations are not shown. 2015 SMALL BUSINESS CREDIT SURVEY | REPORT ON EMPLOYER FIRMS 33 APPENDIX (CONTINUED) D. DEMAND FOR FINANCING (CONTINUED) Firm Age Share that applied for financing 0–2 years 3–5 years 6–10 years 11+ years 53% 55% 43% 43% 45% 17% 19% 63% 39% 22% 7% 72% 40% 30% 13% 59% 30% 27% 16% 57% 37% 18% 73% 42% 13% 44% 5% 5% 7% 38% 14% 72% 26% 9% 41% 6% 6% 8% 39% 23% 75% 25% 8% 29% 5% 6% 4% 43% 11% 73% 14% 6% 15% 4% 13% 2% 39% 53% 36% 39% 37% 48% 4% 49% 53% 42% 35% 37% 42% 4% 54% 53% 39% 35% 41% 46% 5% 66% 56% 34% 33% 35% 32% 2% REASON(S) FOR SEEKING FINANCING Operating expenses Refinance Other reason Expand business/new opportunity SOURCE(S) OF FINANCING ADVICE, APPLICANTS Accountant, consultant, or business advisor Loan broker Banker or lender Friends, family, or colleagues Chamber of commerce or industry association SBDC (Small Business Development Center) Other source of advice None SCORE (Service Corps of Retired Executives) FACTOR(S) INFLUENCING APPLICATION DECISION Existing relationship with lender Cost Flexibility of the credit product(s) Speed of the decision process Ease of the application process Perceived chance of being funded Other Data with fewer than 45 observations are not shown. 2015 SMALL BUSINESS CREDIT SURVEY | REPORT ON EMPLOYER FIRMS 34 APPENDIX (CONTINUED) D. DEMAND FOR FINANCING (CONTINUED) Number of Employees 1–9 employees 10–49 employees 50+ employees 43% 56% 59% 40% 24% 14% 61% 33% 25% 15% 63% 22% 23% 19% 62% 38% 17% 71% 27% 10% 32% 6% 9% 5% 44% 12% 77% 22% 7% 23% 4% 8% 4% 49% 13% 80% 13% 3% 13% 2% 11% 0% 50% 51% 37% 35% 38% 45% 4% 62% 59% 37% 35% 36% 31% 3% 73% 65% 36% 33% 32% 26% 2% Share that applied for financing REASON(S) FOR SEEKING FINANCING Operating expenses Refinance Other reason Expand business/new opportunity SOURCE(S) OF FINANCING ADVICE, APPLICANTS Accountant, consultant, or business advisor Loan broker Banker or lender Friends, family, or colleagues Chamber of commerce or industry association SBDC (Small Business Development Center) Other source of advice None SCORE (Service Corps of Retired Executives) FACTOR(S) INFLUENCING APPLICATION DECISION Existing relationship with lender Cost Flexibility of the credit product(s) Speed of the decision process Ease of the application process Perceived chance of being funded Other Data with fewer than 45 observations are not shown. 2015 SMALL BUSINESS CREDIT SURVEY | REPORT ON EMPLOYER FIRMS 35 APPENDIX (CONTINUED) D. DEMAND FOR FINANCING (CONTINUED) Annual Revenues Share that applied for financing <$100K $100K–$1M $1M–$10M >$10M 40% 47% 50% 55% 53% 18% 14% 62% 37% 28% 12% 61% 32% 25% 16% 61% 24% 22% 15% 62% 34% 22% 61% 37% 16% 44% 7% 8% 11% 36% 17% 73% 23% 8% 32% 4% 9% 5% 49% 12% 80% 20% 5% 15% 6% 9% 2% 41% 7% 81% 12% 2% 8% 2% 10% 0% 38% 52% 35% 34% 41% 61% 4% 52% 53% 38% 35% 37% 42% 4% 65% 56% 37% 37% 36% 31% 4% 80% 61% 35% 29% 33% 18% 2% REASON(S) FOR SEEKING FINANCING Operating expenses Refinance Other reason Expand business/new opportunity SOURCE(S) OF FINANCING ADVICE, APPLICANTS Accountant, consultant, or business advisor Loan broker Banker or lender Friends, family, or colleagues Chamber of commerce or industry association SBDC (Small Business Development Center) Other source of advice None SCORE (Service Corps of Retired Executives) FACTOR(S) INFLUENCING APPLICATION DECISION Existing relationship with lender Cost Flexibility of the credit product(s) Speed of the decision process Ease of the application process Perceived chance of being funded Other Data with fewer than 45 observations are not shown. 2015 SMALL BUSINESS CREDIT SURVEY | REPORT ON EMPLOYER FIRMS 36 APPENDIX (CONTINUED) D. DEMAND FOR FINANCING (CONTINUED) 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 financing Non-manufacturing goods production & associated services Industry 55% 52% 42% 52% 34% 50% 39% 49% 38% 21% 14% 64% 36% 22% 12% 65% 40% 32% 11% 53% 34% 25% 14% 65% 37% 31% 14% 49% 45% 28% 18% 56% 34% 15% 12% 66% 33% 25% 19% 62% 41% 16% 72% 17% 3% 22% 5% 11% 4% 41% 11% 80% 18% 11% 27% 7% 8% 5% 40% 16% 73% 25% 6% 27% 5% 7% 6% 30% 17% 70% 33% 10% 31% 5% 5% 4% – – – – – – – – – 47% 16% 70% 32% 14% 50% 6% 5% 6% 49% 15% 75% 28% 10% 28% 5% 9% 4% 40% 12% 78% 19% 9% 25% 5% 8% 5% 64% 54% 35% 35% 37% 36% 4% 59% 48% 34% 38% 33% 38% 7% 59% 52% 33% 36% 36% 39% 1% 46% 62% 40% 36% 39% 42% 5% – – – – – – – 41% 49% 39% 36% 46% 51% 4% 57% 60% 41% 36% 34% 41% 1% 52% 52% 37% 26% 36% 36% 7% REASON(S) FOR SEEKING FINANCING Operating expenses Refinance Other reason Expand business/new opportunity SOURCE(S) OF FINANCING ADVICE, APPLICANTS Accountant, consultant, or business advisor Loan broker Banker or lender Friends, family, or colleagues Chamber of commerce or industry association SBDC (Small Business Development Center) Other source of advice None SCORE (Service Corps of Retired Executives) FACTOR(S) INFLUENCING APPLICATION DECISION Existing relationship with lender Cost Flexibility of the credit product(s) Speed of the decision process Ease of the application process Perceived chance of being funded Other Data with fewer than 45 observations are not shown. 2015 SMALL BUSINESS CREDIT SURVEY | REPORT ON EMPLOYER FIRMS 37 APPENDIX (CONTINUED) E. APPLICATIONS All Employer Firms Growth Stage Weighted percent Not growing Growing 54% 23% 23% 57% 22% 22% 46% 26% 27% 89% 30% 4% 11% 9% 4% 3% 89% 28% 3% 9% 7% 4% 3% 89% 35% 7% 13% 12% 4% 4% 52% 21% 57% 10% 7% 4% 5% 54% 19% 56% 10% 8% 3% 5% 49% 27% 60% 11% 6% 5% 5% NUMBER OF APPLICATIONS SUBMITTED 1 2 3 or more APPLICATION RATE BY FINANCIAL PRODUCT Loan/line of credit Credit card Equity investment Leasing Trade credit Other Factoring APPLICATION RATE BY TYPE OF LOAN/LINE OF CREDIT Business loan SBA loan/line of credit Line of credit Mortgage Cash advance Other product Auto or equipment loan Data with fewer than 45 observations are not shown. 2015 SMALL BUSINESS CREDIT SURVEY | REPORT ON EMPLOYER FIRMS 38 APPENDIX (CONTINUED) E. APPLICATIONS (CONTINUED) Firm Age 0–2 years 3–5 years 6–10 years 11+ years 48% 23% 30% 55% 20% 25% 52% 25% 23% 59% 22% 19% 85% 44% 6% 8% 10% 4% 2% 90% 34% 5% 11% 7% 3% 6% 92% 27% 4% 9% 10% 2% 3% 89% 21% 4% 13% 9% 5% 3% 58% 37% 53% 9% 9% 4% 2% 55% 29% 58% 5% 8% 4% 4% 52% 19% 56% 6% 13% 4% 5% 48% 10% 59% 15% 4% 3% 6% NUMBER OF APPLICATIONS SUBMITTED 1 2 3 or more APPLICATION RATE BY FINANCIAL PRODUCT Loan/line of credit Credit card Equity investment Leasing Trade credit Other Factoring APPLICATION RATE BY TYPE OF LOAN/LINE OF CREDIT Business loan SBA loan/line of credit Line of credit Mortgage Cash advance Other product Auto or equipment loan Data with fewer than 45 observations are not shown. 2015 SMALL BUSINESS CREDIT SURVEY | REPORT ON EMPLOYER FIRMS 39 APPENDIX (CONTINUED) E. APPLICATIONS (CONTINUED) Number of Employees 1–9 employees 10–49 employees 50+ employees 55% 22% 23% 51% 27% 23% 59% 18% 23% 88% 33% 4% 8% 8% 4% 3% 88% 24% 6% 17% 11% 4% 4% 95% 20% 7% 17% 8% 2% 3% 53% 23% 54% 8% 9% 5% 5% 49% 19% 63% 13% 4% 2% 5% 56% 9% 65% 24% 1% 1% 2% NUMBER OF APPLICATIONS SUBMITTED 1 2 3 or more APPLICATION RATE BY FINANCIAL PRODUCT Loan/line of credit Credit card Equity investment Leasing Trade credit Other Factoring APPLICATION RATE BY TYPE OF LOAN/LINE OF CREDIT Business loan SBA loan/line of credit Line of credit Mortgage Cash advance Other product Auto or equipment loan Data with fewer than 45 observations are not shown. 2015 SMALL BUSINESS CREDIT SURVEY | REPORT ON EMPLOYER FIRMS 40 APPENDIX (CONTINUED) E. APPLICATIONS (CONTINUED) Annual Revenues <$100K $100K–$1M $1M–$10M >$10M 47% 17% 37% 56% 25% 19% 53% 25% 22% 58% 21% 21% 83% 48% 8% 6% 12% 4% 3% 90% 27% 3% 9% 7% 4% 4% 89% 24% 4% 18% 12% 4% 3% 93% 16% 6% 14% 11% 2% 3% 63% 36% 47% 6% 10% 6% 3% 51% 20% 56% 8% 9% 4% 6% 49% 15% 64% 15% 5% 2% 5% 50% 8% 70% 20% 0% 3% 1% NUMBER OF APPLICATIONS SUBMITTED 1 2 3 or more APPLICATION RATE BY FINANCIAL PRODUCT Loan/line of credit Credit card Equity investment Leasing Trade credit Other Factoring APPLICATION RATE BY TYPE OF LOAN/LINE OF CREDIT Business loan SBA loan/line of credit Line of credit Mortgage Cash advance Other product Auto or equipment loan Data with fewer than 45 observations are not shown. 2015 SMALL BUSINESS CREDIT SURVEY | REPORT ON EMPLOYER FIRMS 41 APPENDIX (CONTINUED) E. APPLICATIONS (CONTINUED) 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 Industry 50% 24% 26% 47% 27% 26% 55% 24% 21% 63% 20% 16% 54% 29% 17% 50% 19% 31% 51% 24% 25% 62% 21% 18% 91% 30% 6% 10% 16% 4% 4% 91% 21% 7% 17% 12% 4% 5% 89% 30% 2% 9% 11% 3% 3% 86% 24% 4% 11% 3% 7% 1% 83% 34% 0% 5% 6% 1% 3% 89% 35% 4% 12% 7% 5% 2% 89% 29% 9% 12% 6% 4% 4% 88% 32% 2% 11% 6% 2% 4% 46% 13% 66% 9% 7% 3% 11% 51% 19% 64% 12% 4% 4% 3% 51% 27% 54% 9% 8% 4% 3% 58% 27% 41% 14% 5% 4% 1% 61% 10% 66% 15% 7% 6% 0% 56% 33% 50% 11% 9% 4% 2% 52% 18% 67% 10% 4% 3% 2% 51% 18% 52% 9% 12% 4% 7% NUMBER OF APPLICATIONS SUBMITTED 1 2 3 or more APPLICATION RATE BY FINANCIAL PRODUCT Loan/line of credit Credit card Equity investment Leasing Trade credit Other Factoring APPLICATION RATE BY TYPE OF LOAN/LINE OF CREDIT Business loan SBA loan/line of credit Line of credit Mortgage Cash advance Other product Auto or equipment loan Data with fewer than 45 observations are not shown. 2015 SMALL BUSINESS CREDIT SURVEY | REPORT ON EMPLOYER FIRMS 42 APPENDIX (CONTINUED) F. FINANCING SUCCESS AND SOURCES OF CREDIT All Employer Firms Growth Stage Weighted percent Not growing Growing 82% 79% 86% 50% 48% 52% 80% 74% 89% 84% 73% 79% 76% – 83% 80% – 77% 86% – 96% 90% – 82% 69% 59% 71% 73% 71% – 89% 65% 53% 69% 70% 70% – – 75% 65% 72% 78% – – – 42% 52% 9% 20% 14% 43% 51% 9% 20% 14% 42% 54% 8% 18% 13% 58% 76% 59% 71% 71% 55% 73% – 69% 70% 60% 81% – 77% 68% 51% 75% 15% 33% 56% 49% 76% 7% 18% – 53% 71% 20% – – Overall approval rate (% receiving at least some financing) Share receiving the full amount requested APPROVAL RATE BY FINANCIAL PRODUCT Credit card Equity Leasing Trade credit Other type of financing Loan or line of credit APPROVAL RATE BY TYPE OF LOAN/LINE OF CREDIT Business loan SBA loan/line of credit Line of credit Mortgage Cash advance 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 Small bank Credit union Online lender Other source APPROVAL RATE BY SOURCE OF LOAN/LINE OF CREDIT Large bank Small bank Credit union Online lender Other source NET PERCENT SATISFIED WITH LENDER, APPROVED FIRMS Large bank Small bank Online lender Other lender Credit union Data with fewer than 45 observations are not shown. 2015 SMALL BUSINESS CREDIT SURVEY | REPORT ON EMPLOYER FIRMS 43 APPENDIX (CONTINUED) F. FINANCING SUCCESS AND SOURCES OF CREDIT (CONTINUED) Firm Age Overall approval rate (% receiving at least some financing) Share receiving the full amount requested 0–2 years 3–5 years 6–10 years 11+ years 79% 75% 79% 88% 42% 39% 45% 61% 77% – – – – 73% 84% – – – – 72% 81% – – – – 76% 82% – 97% 87% – 87% 56% – 62% – – – – 64% – 62% – – – – 71% 56% 64% – – – – 77% 66% 80% 83% – – 95% 40% 51% 14% 26% 14% 45% 43% 11% 21% 17% 42% 46% 10% 30% 13% 43% 58% 4% 11% 13% 46% 67% – – – 47% 64% – – – 49% 75% – 69% – 71% 84% – 73% 80% – 79% – – – – 66% – – – – 66% – – – 57% 78% 7% 53% – APPROVAL RATE BY FINANCIAL PRODUCT Credit card Equity Leasing Trade credit Other type of financing Loan or line of credit APPROVAL RATE BY TYPE OF LOAN/LINE OF CREDIT Business loan SBA loan/line of credit Line of credit Mortgage Cash advance 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 Small bank Credit union Online lender Other source APPROVAL RATE BY SOURCE OF LOAN/LINE OF CREDIT Large bank Small bank Credit union Online lender Other source NET PERCENT SATISFIED WITH LENDER, APPROVED FIRMS Large bank Small bank Online lender Other lender Credit union Data with fewer than 45 observations are not shown. 2015 SMALL BUSINESS CREDIT SURVEY | REPORT ON EMPLOYER FIRMS 44 APPENDIX (CONTINUED) F. FINANCING SUCCESS AND SOURCES OF CREDIT (CONTINUED) Number of Employees 1–9 employees 10–49 employees 50+ employees 79% 88% 96% 45% 59% 72% 76% – 82% 82% – 75% 92% – 95% 88% – 87% – – – – – 96% 63% 54% 64% 62% 69% – – 76% 72% 78% 80% – – – 92% – 96% – – – – 40% 50% 10% 23% 16% 43% 57% 7% 15% 12% 59% 49% 1% 4% 7% 48% 71% 57% 67% 69% 68% 82% – 86% 75% 91% 98% 59% – – 49% 72% 12% 18% – 50% 81% 27% – – 60% 75% – – 56% Overall approval rate (% receiving at least some financing) Share receiving the full amount requested APPROVAL RATE BY FINANCIAL PRODUCT Credit card Equity Leasing Trade credit Other type of financing Loan or line of credit APPROVAL RATE BY TYPE OF LOAN/LINE OF CREDIT Business loan SBA loan/line of credit Line of credit Mortgage Cash advance 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 Small bank Credit union Online lender Other source APPROVAL RATE BY SOURCE OF LOAN/LINE OF CREDIT Large bank Small bank Credit union Online lender Other source NET PERCENT SATISFIED WITH LENDER, APPROVED FIRMS Large bank Small bank Online lender Other lender Credit union Data with fewer than 45 observations are not shown. 2015 SMALL BUSINESS CREDIT SURVEY | REPORT ON EMPLOYER FIRMS 45 APPENDIX (CONTINUED) F. FINANCING SUCCESS AND SOURCES OF CREDIT (CONTINUED) Annual Revenues Overall approval rate (% receiving at least some financing) Share receiving the full amount requested <$100K $100K–$1M $1M–$10M >$10M 70% 79% 92% 96% 37% 45% 63% 73% 76% – – – – 65% 79% – 85% 88% – 76% 87% – 94% 94% – 89% – – – – – 96% 54% – 55% – – – – 65% 54% 65% – – – – 81% 75% 82% 84% – – – 92% – 91% – 71% – – 41% 44% 14% 30% 27% 39% 52% 9% 22% 13% 45% 59% 4% 11% 10% 58% 53% 1% 6% 6% 33% 60% – – – 49% 69% – 80% 69% 72% 88% – 89% 90% 88% 96% – – – – – – – – 37% 76% 18% 23% – 60% 76% – – – 71% 74% – – – APPROVAL RATE BY FINANCIAL PRODUCT Credit card Equity Leasing Trade credit Other type of financing Loan or line of credit APPROVAL RATE BY TYPE OF LOAN/LINE OF CREDIT Business loan SBA loan/line of credit Line of credit Mortgage Cash advance 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 Small bank Credit union Online lender Other source APPROVAL RATE BY SOURCE OF LOAN/LINE OF CREDIT Large bank Small bank Credit union Online lender Other source NET PERCENT SATISFIED WITH LENDER, APPROVED FIRMS Large bank Small bank Online lender Other lender Credit union Data with fewer than 45 observations are not shown. 2015 SMALL BUSINESS CREDIT SURVEY | REPORT ON EMPLOYER FIRMS 46 APPENDIX (CONTINUED) F. FINANCING SUCCESS AND SOURCES OF CREDIT (CONTINUED) 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 financing) Share receiving the full amount requested Non-manufacturing goods production & associated services Industry 86% 88% 80% 78% 76% 82% 82% 83% 55% 58% 48% 55% 38% 48% 51% 44% 82% – 86% 95% – 83% 91% – 93% – – 86% 82% – – – – 78% – – – – – 79% – – – – – – – – – – – 81% 74% – – 79% – 76% 85% 74% 100% 71% 73% 76% 71% – 75% – – – – 82% – 80% – – – – 64% – 72% – – – – 64% – 70% – – – – – – – – – – – 80% – 65% – – – – 60% – 72% – – – – 69% – 66% – – – 89% APPROVAL RATE BY FINANCIAL PRODUCT Credit card Equity Leasing Trade credit Other type of financing Loan or line of credit APPROVAL RATE BY TYPE OF LOAN/LINE OF CREDIT Business loan SBA loan/line of credit Line of credit Mortgage Cash advance Other type of loan or line of credit Auto or equipment loan Continued on next page Data with fewer than 45 observations are not shown. 2015 SMALL BUSINESS CREDIT SURVEY | REPORT ON EMPLOYER FIRMS 47 APPENDIX (CONTINUED) F. FINANCING SUCCESS AND SOURCES OF CREDIT (CONTINUED) Manufacturing Retail Leisure and hospitality Finance and insurance Healthcare and education Professional services and real estate Business support and consumer services Continued from previous page Non-manufacturing goods production & associated services Industry 46% 53% 6% 18% 16% 44% 57% 4% 13% 12% 43% 50% 10% 21% 11% 35% 59% 5% 15% 12% 53% 48% 8% 26% 8% 36% 46% 13% 29% 19% 43% 54% 10% 13% 14% 44% 48% 10% 23% 13% 60% 86% – – 77% 75% 80% – – – 56% 80% – – – – 70% – – – – – – – – – 68% – – – 61% 76% – – – 51% 72% – – – 48% 76% – – – 20% 83% – – – 64% 72% – – – – 67% – – – – – – – – – – – – – 63% 83% – – – – 72% – – – SOURCE(S) OF LOANS AND LINES OF CREDIT APPLICATION RATE BY SOURCE OF LOAN/LINE OF CREDIT Large bank Small bank Credit union Online lender Other source APPROVAL RATE BY SOURCE OF LOAN/LINE OF CREDIT Large bank Small bank Credit union Online lender Other source NET PERCENT SATISFIED WITH LENDER, APPROVED FIRMS Large bank Small bank Online lender Other lender Credit union Data with fewer than 45 observations are not shown. 2015 SMALL BUSINESS CREDIT SURVEY | REPORT ON EMPLOYER FIRMS 48 APPENDIX (CONTINUED) G. FINANCING SHORTFALLS All Employer Firms Growth Stage Weighted percent Not growing Growing 50% 52% 48% 28% 32% 3% 30% 19% 28% 27% 32% 34% 4% 33% 18% 26% 27% 18% 29% 2% 23% 20% 34% 27% 24% 24% 16% 9% 7% 20% 28% 20% 18% 8% 6% 21% 16% 32% 11% 11% 10% 21% Share receiving less than the amount requested REASON(S) FOR RECEIVING LESS THAN THE AMOUNT REQUESTED Low credit score Insufficient collateral Inadequate documentation Weak business performance Unsure Insufficient credit history Other PRIMARY IMPACT OF NOT RECEIVING THE FULL AMOUNT REQUESTED Unable to meet expenses Delayed expansion Passed on opportunity No impact Other Used personal funds Data with fewer than 45 observations are not shown. 2015 SMALL BUSINESS CREDIT SURVEY | REPORT ON EMPLOYER FIRMS 49 APPENDIX (CONTINUED) G. FINANCING SHORTFALLS (CONTINUED) Firm Age Share receiving less than the amount requested 0–2 years 3–5 years 6–10 years 11+ years 58% 61% 55% 39% 23% 25% 0% 18% 22% 38% 37% 31% 46% 4% 30% 11% 50% 20% 33% 28% 2% 33% 24% 24% 23% 26% 33% 7% 39% 17% 9% 25% 24% 18% 8% 14% 9% 27% 22% 30% 20% 5% 4% 18% 32% 22% 18% 8% 7% 14% 21% 28% 18% 6% 7% 20% REASON(S) FOR RECEIVING LESS THAN THE AMOUNT REQUESTED Low credit score Insufficient collateral Inadequate documentation Weak business performance Unsure Insufficient credit history Other PRIMARY IMPACT OF NOT RECEIVING THE FULL AMOUNT REQUESTED Unable to meet expenses Delayed expansion Passed on opportunity No impact Other Used personal funds Data with fewer than 45 observations are not shown. 2015 SMALL BUSINESS CREDIT SURVEY | REPORT ON EMPLOYER FIRMS 50 APPENDIX (CONTINUED) G. FINANCING SHORTFALLS (CONTINUED) Number of Employees 1–9 employees 10–49 employees 50+ employees 55% 41% 28% 31% 32% 3% 29% 17% 32% 27% 18% 33% 4% 34% 20% 17% 26% – – – – – – – 24% 26% 14% 8% 6% 22% 29% 19% 16% 11% 9% 17% – – – – – – Share receiving less than the amount requested REASON(S) FOR RECEIVING LESS THAN THE AMOUNT REQUESTED Low credit score Insufficient collateral Inadequate documentation Weak business performance Unsure Insufficient credit history Other PRIMARY IMPACT OF NOT RECEIVING THE FULL AMOUNT REQUESTED Unable to meet expenses Delayed expansion Passed on opportunity No impact Other Used personal funds Data with fewer than 45 observations are not shown. 2015 SMALL BUSINESS CREDIT SURVEY | REPORT ON EMPLOYER FIRMS 51 APPENDIX (CONTINUED) G. FINANCING SHORTFALLS (CONTINUED) Annual Revenues Share receiving less than the amount requested <$100K $100K–$1M $1M–$10M >$10M 63% 55% 37% 27% 38% 41% 1% 32% 22% 47% 27% 27% 29% 5% 28% 16% 29% 25% 17% 37% 4% 36% 15% 18% 30% – – – – – – – 29% 29% 11% 6% 9% 17% 24% 24% 17% 6% 5% 24% 25% 24% 20% 10% 9% 13% – – – – – – REASON(S) FOR RECEIVING LESS THAN THE AMOUNT REQUESTED Low credit score Insufficient collateral Inadequate documentation Weak business performance Unsure Insufficient credit history Other PRIMARY IMPACT OF NOT RECEIVING THE FULL AMOUNT REQUESTED Unable to meet expenses Delayed expansion Passed on opportunity No impact Other Used personal funds Data with fewer than 45 observations are not shown. 2015 SMALL BUSINESS CREDIT SURVEY | REPORT ON EMPLOYER FIRMS 52 APPENDIX (CONTINUED) G. FINANCING SHORTFALLS (CONTINUED) 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 Non-manufacturing goods production & associated services Industry 45% 42% 52% 46% 62% 52% 49% 56% – 25% 4% 31% 17% 26% 30% – 25% 4% 35% 15% 22% 35% – 41% 1% 21% 18% 29% 39% – – – – – – – – – – – – – – – – – – – – – – 34% 6% 33% 15% 33% 26% – 30% 6% 38% 22% 24% 22% 27% 25% 13% 7% 9% 19% 22% 29% 13% 8% 10% 17% 38% 13% 11% 5% 9% 24% – – – – – – – – – – – – – – – – – – 12% 37% 20% 6% 5% 20% 26% 15% 22% 12% 2% 23% REASON(S) FOR RECEIVING LESS THAN THE AMOUNT REQUESTED Low credit score Insufficient collateral Inadequate documentation Weak business performance Unsure Insufficient credit history Other PRIMARY IMPACT OF NOT RECEIVING THE FULL AMOUNT REQUESTED Unable to meet expenses Delayed expansion Passed on opportunity No impact Other Used personal funds Data with fewer than 45 observations are not shown. 2015 SMALL BUSINESS CREDIT SURVEY | REPORT ON EMPLOYER FIRMS 53 APPENDIX (CONTINUED) H. DATA FOR SELECT STATES State AL AR CT FL GA MA N=179 N=144 N=196 N=367 N=216 N=395 28% 22% 50% 26% 22% 52% 15% 27% 58% 30% 18% 53% 33% 18% 49% 23% 18% 59% 30% 27% 43% 25% 20% 55% 30% 23% 47% 21% 19% 60% 20% 17% 63% 18% 20% 62% 14% 58% 28% 9% 59% 33% 16% 63% 21% 12% 50% 39% 18% 44% 38% 10% 43% 47% 9% 22% 70% 12% 15% 74% 13% 26% 61% 8% 12% 80% 6% 16% 79% 3% 19% 78% 9% 51% 40% 4% 58% 39% 12% 50% 39% 7% 35% 59% 7% 46% 48% 4% 45% 51% 10% 10% 5% 27% 13% 21% 13% 2% 9% 15% 11% 22% 14% 13% 15% 1% 6% 10% 9% 21% 23% 16% 14% 2% 8% 5% 12% 32% 13% 16% 10% 3% 6% 16% 6% 26% 16% 8% 20% 2% 8% 2% 10% 23% 19% 11% 24% 2% BUSINESS CONDITIONS Profitability, end of 2014 At a loss Break even At a profit Revenue change, past 12 months Decreased No change Increased Employee change, past 12 months Decreased No change Increased Expected revenue change, next 12 months Will decrease No change Will increase Expected employee change, next 12 months Will decrease No change Will increase Top business challenge Government regulations Taxes Credit availability Cash flow Costs of running business Revenues/sales Hiring and/or retaining qualified staff Other State data are weighted by firm age, industry, employee size, and state. Data with fewer than 45 observations are not shown. 2015 SMALL BUSINESS CREDIT SURVEY | REPORT ON EMPLOYER FIRMS 54 APPENDIX (CONTINUED) H. DATA FOR SELECT STATES (CONTINUED) State NY NC OH PA TN N=368 N=291 N=244 N=244 N=172 29% 30% 42% 19% 17% 64% 12% 29% 59% 21% 15% 64% 22% 20% 58% 29% 25% 46% 15% 21% 64% 27% 29% 44% 26% 30% 44% 21% 16% 63% 17% 58% 25% 14% 41% 45% 14% 57% 30% 19% 52% 29% 16% 46% 38% 13% 19% 68% 5% 13% 82% 9% 30% 62% 15% 24% 61% 9% 15% 77% 10% 42% 48% 4% 47% 49% 5% 54% 41% 10% 51% 39% 3% 49% 48% 8% 7% 14% 23% 23% 13% 10% 3% 16% 6% 10% 18% 17% 10% 20% 2% 10% 9% 5% 13% 21% 9% 30% 4% 12% 13% 6% 19% 19% 12% 17% 2% 8% 9% 9% 18% 20% 19% 17% 0% BUSINESS CONDITIONS Profitability, end of 2014 At a loss Break even At a profit Revenue change, past 12 months Decreased No change Increased Employee change, past 12 months Decreased No change Increased Expected revenue change, next 12 months Will decrease No change Will increase Expected employee change, next 12 months Will decrease No change Will increase Top business challenge Government regulations Taxes Credit availability Cash flow Costs of running business Revenues/sales Hiring and/or retaining qualified staff Other State data are weighted by firm age, industry, employee size, and state. Data with fewer than 45 observations are not shown. 2015 SMALL BUSINESS CREDIT SURVEY | REPORT ON EMPLOYER FIRMS 55 APPENDIX (CONTINUED) H. DATA FOR SELECT STATES (CONTINUED) State AL AR CT FL GA MA 59% 76% 62% 61% 74% 59% 7% 15% 12% 13% 19% 8% 4% 8% 14% 4% 13% 9% 13% 29% 15% 9% 4% 4% 8% 12% 8% 19% 18% 17% 10% 4% 4% 13% 15% 11% 18% 17% 7% 7% 6% 5% 5% 16% 14% 14% 19% 13% 8% 5% 6% 10% 13% 18% 13% 19% 12% 9% 4% 2% 67% 55% 12% 2% 17% 3% 71% 56% 4% 0% 9% 6% 66% 53% 4% 0% 13% 4% 64% 42% 9% 1% 15% 6% 66% 58% 8% 1% 15% 7% 64% 51% 4% 2% 16% 6% 21% 57% 22% 32% 40% 28% 26% 59% 16% 26% 64% 11% 31% 48% 22% 35% 53% 12% OUTSTANDING DEBT AND STARTUP FUNDING Share with prior outstanding debt Amount of outstanding debt Less than $10K $10K–$25K $25K–$50K $50K–$100K $100K–$250K $250K–$500K $500K–$1M $1M–$2M Over $2M Collateral used to secure debt Personal assets or guarantee Business assets Portions of future sales Unsure None Other Funding used during first two years of operations Retained business earnings Personal funds of owner(s) External financing State data are weighted by firm age, industry, employee size, and state. Data with fewer than 45 observations are not shown. 2015 SMALL BUSINESS CREDIT SURVEY | REPORT ON EMPLOYER FIRMS 56 APPENDIX (CONTINUED) H. DATA FOR SELECT STATES (CONTINUED) State NY NC OH PA TN 54% 62% 56% 69% 57% 15% 11% 12% 25% 22% 4% 5% 4% 3% 14% 11% 17% 19% 12% 12% 6% 3% 6% 1% 18% 16% 15% 22% 15% 7% 3% 3% 6% 8% 15% 18% 23% 16% 9% 3% 3% 1% 7% 17% 21% 25% 8% 9% 2% 9% 59% 37% 14% 2% 26% 3% 63% 52% 8% 3% 15% 3% 59% 60% 5% 1% 17% 1% 62% 51% 10% 2% 18% 4% 74% 42% 4% 0% 13% 6% 33% 57% 9% 37% 43% 20% 36% 50% 13% 32% 54% 14% 23% 57% 21% OUTSTANDING DEBT AND STARTUP FUNDING Share with prior outstanding debt Amount of outstanding debt Less than $10K $10K–$25K $25K–$50K $50K–$100K $100K–$250K $250K–$500K $500K–$1M $1M–$2M Over $2M Collateral used to secure debt Personal assets or guarantee Business assets Portions of future sales Unsure None Other Funding used during first two years of operations Retained business earnings Personal funds of owner(s) External financing State data are weighted by firm age, industry, employee size, and state. Data with fewer than 45 observations are not shown. 2015 SMALL BUSINESS CREDIT SURVEY | REPORT ON EMPLOYER FIRMS 57 APPENDIX (CONTINUED) H. DATA FOR SELECT STATES (CONTINUED) State AL AR CT FL GA MA 52% 14% 25% 3% 0% 7% 51% 17% 27% 0% 0% 4% 61% 10% 23% 0% 2% 5% 32% 24% 26% 4% 8% 6% 44% 21% 24% 0% 3% 8% 52% 22% 20% 2% 1% 4% 22% 0% 21% 9% 2% 12% 2% 61% 0% 28% 2% 23% 10% 5% 22% 3% 50% 2% 21% 2% 18% 13% 7% 4% 1% 65% 1% 25% 1% 23% 15% 7% 28% 5% 41% 8% 37% 11% 32% 22% 5% 20% 1% 42% 2% 33% 2% 25% 22% 6% 19% 3% 40% 3% NON-APPLICANTS Primary reason for not applying, non-applicants Sufficient financing Discouraged Debt averse Credit cost high Search too difficult Other Sources of financing advice, non-applicants Accountant, consultant, or business advisor Loan broker Banker or lender Friends, family, or colleagues Chamber of commerce or industry association SBDC (Small Business Development Center) Other source of advice None SCORE (Service Corps of Retired Executives) State data are weighted by firm age, industry, employee size, and state. Data with fewer than 45 observations are not shown. 2015 SMALL BUSINESS CREDIT SURVEY | REPORT ON EMPLOYER FIRMS 58 APPENDIX (CONTINUED) H. DATA FOR SELECT STATES (CONTINUED) State NY NC OH PA TN 36% 23% 30% 4% 4% 4% 59% 13% 21% 2% 1% 4% 55% 9% 32% 2% 1% 2% 51% 12% 28% 0% 3% 6% 58% 12% 16% 4% 1% 9% 25% 2% 19% 17% 5% 13% 3% 54% 2% 30% 5% 31% 15% 4% 10% 1% 52% 1% 24% 1% 11% 14% 5% 14% 3% 61% 0% 27% 0% 27% 14% 3% 8% 1% 53% 1% 34% 0% 25% 19% 7% 15% 0% 42% 7% NON-APPLICANTS Primary reason for not applying, non-applicants Sufficient financing Discouraged Debt averse Credit cost high Search too difficult Other Sources of financing advice, non-applicants Accountant, consultant, or business advisor Loan broker Banker or lender Friends, family, or colleagues Chamber of commerce or industry association SBDC (Small Business Development Center) Other source of advice None SCORE (Service Corps of Retired Executives) State data are weighted by firm age, industry, employee size, and state. Data with fewer than 45 observations are not shown. 2015 SMALL BUSINESS CREDIT SURVEY | REPORT ON EMPLOYER FIRMS 59 APPENDIX (CONTINUED) H. DATA FOR SELECT STATES (CONTINUED) State AL AR CT FL GA MA 44% 52% 46% 52% 53% 45% 38% 22% 22% 47% 32% 26% 21% 62% 40% 25% 8% 66% 40% 30% 14% 61% 40% 20% 7% 63% 40% 28% 14% 59% 40% 13% 78% 23% 10% 17% 3% 9% 2% 33% 13% 76% 28% 3% 43% 0% 6% 3% 47% 15% 75% 14% 6% 29% 3% 11% 7% 42% 26% 71% 30% 16% 43% 5% 8% 11% 39% 10% 76% 27% 7% 54% 9% 3% 8% 50% 18% 74% 21% 7% 32% 3% 7% 6% 59% 58% 33% 38% 25% 41% 5% 62% 60% 32% 31% 39% 36% 3% 54% 55% 36% 39% 40% 41% 2% 44% 53% 42% 32% 30% 55% 1% 56% 47% 32% 26% 34% 35% 7% 59% 50% 37% 37% 43% 42% 5% DEMAND FOR FINANCING Share that applied for financing Reasons for seeking financing Operating expenses Refinance Other reason Expand business/new opportunity Sources of financing advice, applicants Accountant, consultant, or business advisor Loan broker Banker or lender Friends, family, or colleagues Chamber of commerce or industry association SBDC (Small Business Development Center) Other source of advice None SCORE (Service Corps of Retired Executives) Factors influencing application decision Existing relationship with lender Cost Flexibility of the credit product(s) Speed of the decision process Ease of the application process Perceived chance of being funded Other State data are weighted by firm age, industry, employee size, and state. Data with fewer than 45 observations are not shown. 2015 SMALL BUSINESS CREDIT SURVEY | REPORT ON EMPLOYER FIRMS 60 APPENDIX (CONTINUED) H. DATA FOR SELECT STATES (CONTINUED) State NY NC OH PA TN 42% 40% 46% 46% 49% 44% 27% 9% 71% 41% 23% 10% 63% 29% 17% 24% 56% 28% 19% 16% 66% 36% 25% 22% 50% 35% 21% 70% 28% 8% 31% 6% 9% 2% 39% 17% 74% 23% 8% 20% 4% 10% 6% 46% 6% 79% 21% 10% 24% 3% 10% 1% 48% 8% 69% 26% 15% 17% 0% 11% 6% 38% 12% 79% 23% 5% 15% 16% 9% 1% 47% 61% 42% 41% 46% 47% 6% 54% 68% 48% 45% 42% 45% 1% 58% 42% 33% 30% 44% 40% 2% 59% 59% 30% 35% 35% 25% 4% 56% 55% 32% 29% 30% 35% 4% DEMAND FOR FINANCING Share that applied for financing Reasons for seeking financing Operating expenses Refinance Other reason Expand business/new opportunity Sources of financing advice, applicants Accountant, consultant, or business advisor Loan broker Banker or lender Friends, family, or colleagues Chamber of commerce or industry association SBDC (Small Business Development Center) Other source of advice None SCORE (Service Corps of Retired Executives) Factors influencing application decision Existing relationship with lender Cost Flexibility of the credit product(s) Speed of the decision process Ease of the application process Perceived chance of being funded Other State data are weighted by firm age, industry, employee size, and state. Data with fewer than 45 observations are not shown. 2015 SMALL BUSINESS CREDIT SURVEY | REPORT ON EMPLOYER FIRMS 61 APPENDIX (CONTINUED) H. DATA FOR SELECT STATES (CONTINUED) State AL AR CT FL GA MA 54% 25% 20% 64% 20% 16% 47% 31% 21% 44% 22% 33% 51% 25% 23% 61% 21% 19% 92% 21% 3% 20% 15% 1% 3% 86% 23% 8% 6% 4% 4% 0% 90% 29% 3% 14% 6% 3% 3% 92% 36% 7% 10% 8% 3% 7% 87% 48% 6% 14% 11% 3% 2% 89% 27% 4% 8% 12% 3% 3% 50% 11% 69% 11% 7% 1% 5% 54% 24% 51% 8% 2% 2% 3% 48% 15% 71% 9% 2% 1% 2% 61% 24% 61% 11% 18% 5% 3% 51% 32% 53% 14% 1% 2% 3% 39% 24% 51% 13% 1% 8% 5% APPLICATIONS Number of applications submitted 1 2 3 or more Application rate by financial product Loan/line of credit Credit card Equity investment Leasing Trade credit Other Factoring Application rate by type of loan/line of credit Business loan SBA loan/line of credit Line of credit Mortgage Cash advance Other product Auto or equipment loan State data are weighted by firm age, industry, employee size, and state. Data with fewer than 45 observations are not shown. 2015 SMALL BUSINESS CREDIT SURVEY | REPORT ON EMPLOYER FIRMS 62 APPENDIX (CONTINUED) H. DATA FOR SELECT STATES (CONTINUED) State NY NC OH PA TN 51% 25% 25% 51% 26% 23% 65% 23% 12% 56% 18% 26% 55% 26% 19% 85% 39% 7% 10% 10% 6% 6% 95% 22% 4% 9% 8% 1% 1% 82% 21% 2% 14% 9% 6% 0% 93% 28% 3% 13% 9% 3% 0% 91% 26% 1% 11% 7% 12% 3% 56% 29% 59% 6% 13% 2% 3% 57% 26% 58% 16% 4% 3% 2% 43% 18% 56% 12% 0% 1% 7% 50% 12% 61% 10% 9% 6% 5% 40% 5% 68% 9% 6% 9% 5% APPLICATIONS Number of applications submitted 1 2 3 or more Application rate by financial product Loan/line of credit Credit card Equity investment Leasing Trade credit Other Factoring Application rate by type of loan/line of credit Business loan SBA loan/line of credit Line of credit Mortgage Cash advance Other product Auto or equipment loan State data are weighted by firm age, industry, employee size, and state. Data with fewer than 45 observations are not shown. 2015 SMALL BUSINESS CREDIT SURVEY | REPORT ON EMPLOYER FIRMS 63 APPENDIX (CONTINUED) H. DATA FOR SELECT STATES (CONTINUED) State AL AR CT FL GA MA 54% 25% 20% 64% 20% 16% 47% 31% 21% 44% 22% 33% 51% 25% 23% 61% 21% 19% 92% 21% 3% 20% 15% 1% 3% 86% 23% 8% 6% 4% 4% 0% 90% 29% 3% 14% 6% 3% 3% 92% 36% 7% 10% 8% 3% 7% 87% 48% 6% 14% 11% 3% 2% 89% 27% 4% 8% 12% 3% 3% 50% 11% 69% 11% 7% 1% 5% 54% 24% 51% 8% 2% 2% 3% 48% 15% 71% 9% 2% 1% 2% 61% 24% 61% 11% 18% 5% 3% 51% 32% 53% 14% 1% 2% 3% 39% 24% 51% 13% 1% 8% 5% FINANCING SUCCESS AND SOURCES OF CREDIT Number of applications submitted 1 2 3 or more Application rate by financial product Loan/line of credit Credit card Equity investment Leasing Trade credit Other Factoring Application rate by type of loan/line of credit Business loan SBA loan/line of credit Line of credit Mortgage Cash advance Other product Auto or equipment loan State data are weighted by firm age, industry, employee size, and state. Data with fewer than 45 observations are not shown. 2015 SMALL BUSINESS CREDIT SURVEY | REPORT ON EMPLOYER FIRMS 64 APPENDIX (CONTINUED) H. DATA FOR SELECT STATES (CONTINUED) State NY NC OH PA TN 51% 25% 25% 51% 26% 23% 65% 23% 12% 56% 18% 26% 55% 26% 19% 85% 39% 7% 10% 10% 6% 6% 95% 22% 4% 9% 8% 1% 1% 82% 21% 2% 14% 9% 6% 0% 93% 28% 3% 13% 9% 3% 0% 91% 26% 1% 11% 7% 12% 3% 56% 29% 59% 6% 13% 2% 3% 57% 26% 58% 16% 4% 3% 2% 43% 18% 56% 12% 0% 1% 7% 50% 12% 61% 10% 9% 6% 5% 40% 5% 68% 9% 6% 9% 5% FINANCING SUCCESS AND SOURCES OF CREDIT Number of applications submitted 1 2 3 or more Application rate by financial product Loan/line of credit Credit card Equity investment Leasing Trade credit Other Factoring Application rate by type of loan/line of credit Business loan SBA loan/line of credit Line of credit Mortgage Cash advance Other product Auto or equipment loan State data are weighted by firm age, industry, employee size, and state. Data with fewer than 45 observations are not shown. 2015 SMALL BUSINESS CREDIT SURVEY | REPORT ON EMPLOYER FIRMS 65 APPENDIX (CONTINUED) H. DATA FOR SELECT STATES (CONTINUED) State AL AR CT FL GA MA 85% 56% 84% 64% 82% 44% 70% 29% 87% 52% 82% 56% – – – – – 82% – – – – – 81% – – – – – 83% 68% – – – – 64% – – – – – 81% – – – – – 80% 74% – 72% – – – – – – – – – – – – – 67% – – – – 56% – 48% – – – – 65% – 88% – – – – 71% – 75% – – – – 47% 66% 6% 12% 7% 27% 68% 0% 6% 7% 46% 52% 5% 17% 16% 59% 44% 17% 35% 17% 39% 66% 5% 14% 10% 31% 59% 15% 12% 15% – 80% – – – – – – – – – – – – – 41% 43% – – – 72% 78% – – – – 78% – – – – 91% – – – – – – – – – – – – – 18% – – – – – 79% – – – – 68% – – – FINANCING SUCCESS Overall approval rate (% receiving at least some financing) Share receiving the full amount requested Approval rate by financial product Credit card Equity Leasing Trade credit Other type of financing Loan or line of credit Approval rate by type of loan/line of credit Business loan SBA loan/line of credit Line of credit 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 Small bank Credit union Online lender Other source Approval rate by source of loan/line of credit Large bank Small bank Credit union Online lender Other source Net percent satisfied with lender, approved firms Large bank Small bank Online lender Other lender Credit union State data are weighted by firm age, industry, employee size, and state. Data with fewer than 45 observations are not shown. 2015 SMALL BUSINESS CREDIT SURVEY | REPORT ON EMPLOYER FIRMS 66 APPENDIX (CONTINUED) H. DATA FOR SELECT STATES (CONTINUED) State NY NC OH PA TN 73% 33% 83% 52% 89% 60% 86% 50% 87% 55% – – – – – 68% – – – – – 81% – – – – – 89% – – – – – 86% – – – – – 85% 51% – 46% – – – – 66% – 83% – – – – – – 91% – – – – 85% – 73% – – – – – – 81% – – – – 63% 30% 7% 32% 19% 47% 47% 5% 15% 17% 47% 42% 6% 8% 10% 49% 42% 16% 20% 8% 35% 55% 4% 12% 17% 48% – – – – 71% 83% – – – 79% 81% – – – 68% – – – – – 90% – – – – – – – – 61% 55% – – – – – – – – – – – – – – – – – – FINANCING SUCCESS Overall approval rate (% receiving at least some financing) Share receiving the full amount requested Approval rate by financial product Credit card Equity Leasing Trade credit Other type of financing Loan or line of credit Approval rate by type of loan/line of credit Business loan SBA loan/line of credit Line of credit 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 Small bank Credit union Online lender Other source Approval rate by source of loan/line of credit Large bank Small bank Credit union Online lender Other source Net percent satisfied with lender, approved firms Large bank Small bank Online lender Other lender Credit union State data are weighted by firm age, industry, employee size, and state. Data with fewer than 45 observations are not shown. 2015 SMALL BUSINESS CREDIT SURVEY | REPORT ON EMPLOYER FIRMS 67 APPENDIX (CONTINUED) H. DATA FOR SELECT STATES (CONTINUED) State AL AR CT FL GA MA 44% 36% 56% 71% 48% 44% – – – – – – – – – – – – – – – – – – – – – 39% 32% 4% 34% 13% 24% 23% – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – 29% 30% 12% 5% 6% 18% – – – – – – – – – – – – FINANCING SHORTFALLS Share receiving less than the amount requested Reason for receiving less than the amount requested Low credit score Insufficient collateral Inadequate documentation Weak business performance Unsure Insufficient credit history Other Primary impact of not receiving the full amount requested Unable to meet expenses Delayed expansion Passed on opportunity No impact Other Used personal funds State data are weighted by firm age, industry, employee size, and state. Data with fewer than 45 observations are not shown. 2015 SMALL BUSINESS CREDIT SURVEY | REPORT ON EMPLOYER FIRMS 68 APPENDIX (CONTINUED) H. DATA FOR SELECT STATES (CONTINUED) State NY NC OH PA TN 67% 48% 40% 50% 45% 19% 33% 4% 30% 20% 35% 21% – – – – – – – – – – – – – – – – – – – – – – – – – – – – 23% 30% 26% 5% 8% 7% – – – – – – – – – – – – – – – – – – – – – – – – FINANCING SHORTFALLS Share receiving less than the amount requested Reason for receiving less than the amount requested Low credit score Insufficient collateral Inadequate documentation Weak business performance Unsure Insufficient credit history Other Primary impact of not receiving the full amount requested Unable to meet expenses Delayed expansion Passed on opportunity No impact Other Used personal funds State data are weighted by firm age, industry, employee size, and state. Data with fewer than 45 observations are not shown. 2015 SMALL BUSINESS CREDIT SURVEY | REPORT ON EMPLOYER FIRMS 69 APPENDIX (CONTINUED) I. PARTNER ORGANIZATIONS NATIONAL PARTNER ORGANIZATIONS Immigrant Learning Center Accion U.S. Network Massachusetts Small Business Development Center NFIB Research Foundation MCBC Economic Development Committee FEDERAL RESERVE BANK OF ATLANTA Merrimack Valley Chamber of Commerce Metro South Chamber of Commerce Alabama Economics Club Middlesex County Chamber of Commerce Alabama MicroEnterprise Network Nashoba Valley Chamber of Commerce Alabama SBDC Network New Bedford Chamber of Commerce Baldwin Country (AL) Economic Development Alliance North Central Massachusetts Chamber of Commerce Baton Rouge (AL) Area Chamber Chamber of Commerce Association of Alabama Chattanooga Area (TN) Chamber of Commerce North Shore Chamber of Commerce Plymouth Area Chamber of Commerce Retailers Association of Massachusetts Committee of 100 (LA) for Economic Development South Boston Neighborhood Development Center/ Chamber of Commerce East Mississippi Business Development Corp. South Eastern Economic Development (SEED) Corp. Economic Development Commission of Florida's Space Coast South Shore Chamber of Commerce Florida Chamber of Commerce Worcester Regional Chamber of Commerce Florida SBDC Network FEDERAL RESERVE BANK OF CLEVELAND 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 African American Chamber of Commerce of Western Pennsylvania African American Chamber of Greater Cincinnati/ Northern Kentucky Cincinnati USA Regional Chamber Middle Tennessee Association of REALTORS® Commerce Lexington New Orleans Regional Committee for Business Economists Dayton Human Relations Council Northeast Florida Association of Realtors Erie Manufacturer and Business Association 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 Gannon University Small Business Development Center Greater Cincinnati Microenterprise Initiative Kentucky Small Business Development Center KY Innovation Network Northern KY Chamber of Commerce Northwest Industrial Resource Center Ohio Development Services Agency Cape Cod Chamber of Commerce City of Boston—Office of Neighborhood Development City of Holyoke Commonwealth of Massachusetts— Operational Services Division Greater Boston Chamber of Commerce 2015 SMALL BUSINESS CREDIT SURVEY | REPORT ON EMPLOYER FIRMS 70 APPENDIX (CONTINUED) I. PARTNER ORGANIZATIONS (CONTINUED) FEDERAL RESERVE BANK OF NEW YORK New York Bankers Association AccionEast New York Business Development Corporation African American Chamber of Commerce of Westchester & Rockland Counties New York City Department of Consumer Affairs Binghamton Chamber of Commerce New York State Department of Agriculture Bridgeport Economic Development Corporation Bridgeport Regional Business Council Office of Planning and Economic Development, City of Bridgeport Brooklyn Chamber of Commerce Port Authority of New York & New Jersey Buffalo Niagra Partnership Queens Chamber of Commerce Business Council of Fairfield Queens Economic Development Corporation Center State Corporation for Economic Opportunity reSet Social Enterprise Trust Central NY International Business Alliance (CNYIBA) Rising Tide Capital Community Capital NY Rochester Business Alliance Community Loan Fund of the Capital Region Rutgers-Newark Small Business Development Center Connecticut Business and Industry Association Staten Island Chamber of Commerce Connecticut Center for Advanced Technology Statewide Hispanic Chamber of Commerce of New Jersey Connecticut Economic Resource Center, Inc. United State Department of Agriculture Rural Development Connecticut Small Business Development Center VEDC Connecticut Technology Council Yale Entrepreneurial Institute Cooperative Business Assistant Corp (CDFI) Yates County Chamber of Commerce Department of Development Services, City of Hartford Department of Economic and Community Development, Connecticut Office 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 New York City Department of Small Business Services 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 Newark Regional Business Partnership Southeast Commission, Pennsylvania Partnership for Regional Economic Performance New Jersey Business and Industry Association (NJBIA) The Greater Scranton Chamber of Commerce New Jersey Community Capital United Bank of Philadelphia New Jersey District Office, U.S. Small Business Administration Upper Bucks Chamber of Commerce New Jersey Economic Development Authority Welcoming Center for New Pennsylvanians New Jersey Institute of Technology 2015 SMALL BUSINESS CREDIT SURVEY | REPORT ON EMPLOYER FIRMS 71 APPENDIX (CONTINUED) I. PARTNER ORGANIZATIONS (CONTINUED) FEDERAL RESERVE BANK OF RICHMOND FEDERAL RESERVE BANK OF ST. LOUIS Asheville Area Chamber of Commerce 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 Office justine PETERSEN (CDFI) LiftFund Memphis Office 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 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 Office 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 2015 SMALL BUSINESS CREDIT SURVEY | REPORT ON EMPLOYER FIRMS 72