Compared to the national rate, Texas small business loans are awarded less often, with only 37 percent of those who applied actually receiving a loan, compared to 41 percent nationally, according to the most recent Private Capital Access Index* from Pepperdine University and Dun & Bradstreet Credibility Corp. This isn’t good news for businesses in Texas, considering the number of businesses in need of financing due to experienced or planned growth: 45 percent and 52 percent respectively. With such a disconnect between growth and the availability of Texas small business loans, it’s no wonder that these businesses are feeling restricted. Over half of Texas small businesses surveyed feel their growth opportunities are restricted and 50 percent feel their ability to hire is restricted, too. Compared to the national rates, small businesses in Texas are feeling more restricted than the rest of the country.
What does a lack of Texas small business loans mean for the companies planning to grow and hire? Well, in Q4 2014, one-third of Texas small businesses surveyed had to rely on their personal assets to accommodate their business needs, and even more businesses may have to dip into their personal assets if this trend continues. With so many businesses planning to grow in 2015, the ability to get a Texas small business loan becomes increasingly important. Without access to working capital, these business owners may not be able to accomplish their goals or grow their business.
Is your business struggling with getting a loan, too? Check out the rest of Access to Capital to learn more about funding options and resources for small businesses.
See more statistics on Texas small business loans in the graphic below: