Yahoo NewsMarch 8, 2022
WASHINGTON–Two years into the pandemic, more than half of small businesses report being in fair or poor financial condition according to a meta-analysis performed by SCORE, mentors to America’s small businesses and a resource partner of the U.S. Small Business Administration.
Most small businesses have not applied for loans, even though 54% of entrepreneurs who didn’t apply for loans needed funds. Of the small business owners who did apply for outside financing, 63% used those funds to meet basic needs such as wages, rent and inventory costs, rather than to grow their company.
When loans were granted, small businesses struggled to receive the full financing they needed. Even among small businesses with low credit risk, only 38% received the financing they sought, compared to 62% at pre-pandemic levels.