Nationwide, it’s hard to get a small business loan (only 41 percent were successful in Q1 2015), but in California, it’s even harder: Only 31 percent of businesses surveyed that applied for a small business loan in California actually received one. This may be troubling news considering the other statistics collected in the Private Capital Access Index* by Pepperdine University and Dun & Bradstreet Credibility Corp. The survey shows that small and medium businesses in California are growing, with expectations to hire and the need for financial aid due to growth both above the national average. Despite their experienced and planned growth though, California small businesses are feeling more restricted than the rest of the nation: 59 percent of California small businesses surveyed feel their growth opportunities are restricted, compared to only 53 percent nationally, and 49 percent feel their ability to hire is restricted, compared to only 46 percent nationally.
What are the consequences of a lack of small business loans in California? Well, in Q4 2014, one-third of California small businesses had to rely on their personal assets to fund their businesses needs. As these small businesses continue to experience and plan for growth and hiring, they may need a small business loan even more, or they may have to continue to rely on personal assets.
Explore the rest of Access to Capital to learn more about finding funding options and resources for small businesses.
Find more California small business loan statistics below: